Car Insurance – Make Smart
It is possible to pay anything from $500-$2,000 for the same insurance policy, which is why it’s a good idea to compare rates and conduct your research. But cost savings should not be the only thing you consider. When you buy insurance, you’re in fact purchasing protection. And pinching a penny can come back to bite you should you not be careful. These suggestions will help you make smart decisions when buying car insurance.
In some states, like Texas, 30% of drivers don’t have insurance, or adequate insurance, so it’s critical to get uninsured/underinsured motorist coverage to cover your medical bills, lost wages and pain and suffering in the event that an uninsured motorist injures you.
See beyond the car
The more assets, and income you earn, the more insurance you require. An umbrella for personal liability insurance policy along with homeowner’s insurance, isn’t cost-effective, but will provide a crucial safeguard for your wealth. It is possible to avoid additional costs for personal injury protection and medical payment insurance if have family health insurance.
Your neighborhood counts
Crime rates can be a major factor. Take a look at the cars being driven by those who are around you. If you live in a nice area, full of high-end cars, you may want to expand your insurance coverage for property damage. Rural residents may be able to get lower rates than those who reside in urban zones. The cost of living in Dallas, Texas is more expensive than living in peaceful suburbs in the outskirts of Kansas City, Missouri.
Your insurance premium may depend on where you park your vehicle. If you park inside garages, you are more secure from weather-related damage and theft than parking it in a driveway or street, and could qualify you for a reduced price. If you are a home-based worker, have a short daytime commute or take public transportation, you might also be able save some money on your car insurance policy with a low mileage discount.
Depending on what you do for the money, you could be able to cut down on your car insurance premium. Certain occupations are considered to be less risky. Teachers, scientists, police officers and firefighters typically receive discount on their insurance premiums.
Students who live over 100 miles from their school may qualify for a discount. This is an idea that they rarely get driving around in a family car. Good grades are a benefit in many ways. Ask about good student discounts.
It’s a great idea to get married
Statistics show that married men are less likely to be involved in accidents than men who are single. If you’re looking for an extra incentive to move, look into the savings you can make on your car insurance premium. But don’t put it in your proposal. Consider multi-car discounts when you own more than one vehicle in your family.
A speeding ticket could be more costly than the fine. Poor driving records can raise the cost of your insurance. When you’re in a hurry, slow down, and protect yourself and your wallet.
Buying the right kind of car can save on auto insurance. Insurers will pay less for cars equipped with safety features like anti-lock brakes and side air bags. The insurance premiums for vehicles which are often targeted for theft are generally more expensive. For information on the thefts that have occurred to the car make you are looking to purchase go to the Highway Loss Data Institute.
If you’ve got your heart set on a car that is sporty be sure that your bank account is prepared to handle the increased insurance costs. The rates can be substantially higher for high-performance vehicles. If you’re a borrower for your car the lender will have a say in what type of insurance you can get on your car to safeguard their investment. Be wise and consult your insurance company about much it would cost to insure the vehicle that you’re considering purchasing, before you sign on the final bill.
If you’re willing to pay an increased deductible, your monthly insurance cost could be cut. This is something to look at if you’re a good driver. You might also consider changing your insurance coverage as your vehicle ages. If the actual cash value of your vehicle is extremely low, you may think about eliminating collision and comprehensive insurance. However, never skimp on liability insurance regardless of value or age of your vehicle, because if you cause a serious accident, you could be in the position of paying hundreds of thousands of dollars.
Five Questions to ask prior to purchasing Car Insurance
What kind of coverage are provided by car insurance policies?
The protection provided under the policy is a crucial aspect to check as it will determine whether you will be able to file claims and pay cost. Car insurance policies come in two kinds: comprehensive policy and third-party liability policies. Third-party insurance is required by the Motor Vehicles Act 1988. Although comprehensive policies are an option, it isn’t required. Comprehensive insurance protects your vehicle against fire, theft auto-ignition, theft, and natural disasters, while third party insurance only covers for injuries, damages or death that is caused to a any other person or property..
What is insured declared value?
The insured declared value of an automobile is believed to be the sum insured that is fixed by the insurance company at the time of the policy purchase. The value is determined in accordance with the manufacturer’s selling price, and then adjusted on the basis of the depreciation schedule. The declared value of the insured is important as it affects the premium amount as well as the amount of your settlement. IDV is the highest amount that you can claim in the event total vehicle loss.
What can I do to get the best car insurance rate?
Numerous insurance companies offer car insurance both online as well as offline with up to 70% discount. You can find the most affordable car insurance deal online or can connect with your insurance agent to inquire about this.
What are the add-on covers that I can pick?
You can buy add-on covers in conjunction with your comprehensive insurance policy. The addition of additional insurance to your insurance policy helps you enhance your coverage and gives you additional advantages. The various add-on covers you can get as part of your car insurance policy are: zero depreciation, return-to-invoice, no claim bonus protection and more.
What are the exclusions of the policy?
A car insurance policy generally will not include the following:
- General ageing wear and tear
- Electrical or mechanical failure
- Driving while under the influence of the effects of alcohol and other drugs can result in grave damage to the vehicle
- If you are driving without a valid driver permit can cause serious damage
- In the event of an accident damages to tubes and tyres
- Loss or damage caused by nuclear risk, war, or nuclear war