While you may not think about it very often, car insurance is something which everyone needs. You don't think about it much; until you really need it, that is. However, most people have no idea whether or not they are getting a good deal on their car insurance. If you educate yourself about car insurance and what to expect from a policy, you can avoid being convinced to buy a policy which you really don't need.
The coverage which you are required to carry varies from state to state, as does the exact wording of the regulations in states with no-fault insurance; however, it is much the same in each state.
The first section of the policy is the part that covers your automobile. There are two sections to this part, comprehensive and collision. Collision covers when that tree jumps out in front of you, or another driver carelessly puts his car?s rear end in your way. Comprehensive covers theft, a falling branch, hail damage and all other things that damage your car.
The second section of the policy deals with your liability, the other guy?s damage if you caused the accident. The amount of coverage shows up in numbers. 25/50/10 for example means that the company won?t pay more than $25,000 per person and $50,000 total per accident. The 10 stands for $10,000 for property damage per accident.
Medical coverage protects everyone involved in an accident, regardless of who was at fault in the accident - this part of your policy even covers you if you are hit while walking! Medical coverage will cover you of you don't have health insurance and will also cover the costs which your health insurance does not cover.
There will also generally be coverage in your policy to account for uninsured and underinsured drivers, which covers you if someone with no (or inadequate) coverage hits your car. This part of the policy also covers hit and runs, Towing coverage can also be added to your policy if you opt for liability as well as comprehensive and collision coverage for a low fee.
You can reduce the cost of car insurance if you follow a few rules:
1.When it is time to renew your policy, get a variety of quotes and compare the prices. You can do a comparison of rates on many websites - however, look for quotes on insurance with the same coverage as you have now.
2.Look to see if there are discounts available from your home insurance company. There may be a price break available for buying both policies from the same company.
3.Ask about discounts. There are a number of discounts offered. For younger, higher risk and higher premium drivers you often can get a discount for driver?s education courses or good student discounts.
4.You may not need to carry full coverage for your car. If you don't have a loan you are paying on the car, you can sometimes save a lot of money by dropping the comprehensive and collision portions of your coverage. Compare the payment your insurance policy will pay out against the Kelly blue book value if your car is totaled. If this cost is higher than two years of premiums, you might want to consider dropping this part of your policy and using the savings to buy a newer car. However, keep the liability insurance - it's important.
5.Think about getting a beater and using it for commuting and short trips. You can carry full insurance on your good car and carry only liability insurance on the beater. You can save money on your insurance and wear and tear on your good car this way.
