An auto insurance policy may seem to be written with unfamiliar terminology and complicated clauses. You may find yourself feeling hopelessly confused and unsure of what anything means. The goal of this article is to help you understand a few of the common insurance terms that agents use. By understanding these terms, you can be a more informed consumer and make confident decisions about your policy.
Be sure to keep a clean driving record. You will be charged a considerable amount more for car insurance if you have traffic tickets or accidents on your driving record. If you do have an accident or get a ticket, consider attending traffic school. This can often offset the increase in your insurance costs.
Before shopping for car insurance, make sure you assess your coverage needs. There are many options available, but they may not all make sense for your situation. However, collision coverage can be a wise choice for those who find themselves in a lot of accidents.
Switching vehicles between members of the family can raise premiums. Typically, you will get a better price by only having one name attached to each vehicle.
You are just insuring the car’s driver when getting an auto policy. Many drivers lend their car out to a friend, only to find that the friend’s accident is not covered because they were not listed on the driver’s policy. You would have to pay more to cover other drivers using your car.
Think about whether your car really needs those fancy, expensive accessories. It can sound rather appealing to have heated seats or a top notch stereo system, however it is something that you really do not need. If you get in an accident and total your car, or if it’s stolen, the insurance company will only pay you for the value of the car, which does not include any after-market equipment.
Instead of spreading out your car insurance payments, pay it yearly or every six months. Car insurance companies can tack on anywhere from $3-$5 on average a monthly bill. Five dollars a month adds up! Paying your car insurance premium in full at the beginning, saves you yet another monthly bill, of which you likely have plenty of already. It is much better to have fewer payments.
Don’t take the first cheap quote you find. It may be that you get what you pay for, though it is possible that you have indeed found a true bargain. It will be necessary to research the carrier and policy details prior to putting your faith in the notion that you will indeed receive proper compensation if an accident occurs.
Look into the coverage you have on your automobile insurance policy, and see if there is anything you can remove. By way of illustration, those with old cars of minimal value may consider dropping collision coverage from their policy. Lose the extra benefits of your insurance policy and you’ll save money every month. Comprehensive and liability are other aspects of your insurance that you can look into removing or raising deductibles for.
Familiarize yourself with the different types of coverage, and take all precautions to ensure that your insurance plan covers you in a variety of situations. Liability is important for damage done to people and property, as well as damage to yourself and your own car. Protection against potentially uninsured drivers is also crucial, and you should be protected from unforeseen damage to your vehicle, such as that from a fire.
If you use bundled insurance, you can pay a lower rate for auto insurance. This means you should try and purchase all your different types of insurance together. Make sure you are getting a good deal and decent coverage; in some cases two separate insurance policies is still a better choice.
Obtain a record of discounts your provider offers, and thoroughly review it in search of discounts for which you qualify. It’s quite surprising how much money can be saved through discounts.
Not all insurance companies are made the same. Get quotes from a variety of companies to ensure that you’re getting the best deal.
Shop around before settling on one auto insurance provider. It is likely that you will need to look at more than one to find the most beneficial policy.
If you drive less than a certain mileage a year, such as 7500 miles, you might get a discount from the insurance company. This makes cutting your driving down a wonderful way to save money.
Let your insurance agent know if you see a lower rate and are thinking of switching. Many times, your agent can re-work your policy to get your rates in line with competing offers.
Your insurance premiums will go down if you have a better FICO credit score. Auto insurance agencies will go through your credit report. Insurance companies use credit scores as one of the factors in determining your rates, because studies have found a correlation between people with low credit scores and people who get into accidents. Your insurance will stay low and your credit will be in better shape.
Before you sign up for coverage with a new automobile insurer, you should carefully gather facts and reviews on the company. Finding the best auto insurance plan is more complicated than simply locating the cheapest price. If the premiums being offered by an insurance company seem too good to be true, they probably are. Companies that offer suspiciously cheap rates can be a nightmare to deal with if you ever need to make a claim.
Completing a safe or defensive driver program can be a very smart investment and can save you a significant amount of money on your premium. You will be able to get discounts from most insurance companies if you take one of these classes. It can also show you some things you don’t know about safety and improve your driving as well. You can find any number of these classes at driving schools across the country. You will be able to find them on the web if traditional classes don’t work for you.
The goal of this article was to help you navigate the world of auto insurance. A good understanding of your options will help you overcome any confusion about auto insurance.