How To Get The Best Car Insurance Deal Part 2
written by Credit-HQ ExpertBusiness or pleasure?
What you would primarily use the car for would matter a lot when your premium rates are determined by the insurer. Car use for pleasure costs less.
How have you been driving lately?
You’ll luckily get safe driver discounts if you have a clean track record and are not a traffic ticket collector. Conversely, a past DWI record or involvement in a vehicular accident can make premium rates shoot up, or you may be rejected for renewal altogether.
Insurance coverage
The amount will vary greatly, depending on the items you wish to be included in the coverage. Minimum liability coverage is required, and this is what provides protection from insurance claims coming from damage or injuries to property or persons.
Some states may require liability coverage plus no-fault personal injury protection coverage. You also have the option to get the “uninsured motorist insurance coverage.” It becomes practical as it is used in cases when the at-fault party is uninsured, or when the coverage for bodily injuries is insufficient.
If you choose the more costly comprehensive coverage, it will cover even damage from natural disasters such as floods, hurricanes, and earthquakes; you’ll also be covered in cases of fire, theft, and car damage from falling objects. Ask your insurer about the deductible that goes with comprehensive car insurance.
Another type of coverage that includes a deductible is collision coverage. If you, as car owner, are at fault in a collision, this type of coverage will pay for the physical damages to your vehicle – which means that you’ll be reimbursed for repair or replacement of parts less the deductible amount.
Older cars, such as those that are 5-7 years old, may not be covered with the comprehensive and collision coverage. Towing services can also be done away with if you have an auto club membership offering similar benefits or if the car is under warranty.
Keep in mind that an insurance coverage should protect you from expenses you might not be able to afford in case of accidents, not all expenses. In this light, the amount you pay in premiums should not be too oppressive as your car depreciates every year, too.
When you’re informed about the various types of coverage, you would know those items that you can do without and which deductibles to ask for, and save hundreds of dollars in the process.
Other factors
Some insurance companies even consider gender, credit ratings or whether you smoke or not when computing car insurance premium rates. These factors have been included as a result of several studies on which members of the population are more vulnerable to accidents on the road.
Research quotes from various sources
Apart from determining which type of coverage to get, it would be worth your while to take some time to cull car insurance quotes from various sources. This will help you select the best but most affordable ones, and thanks to technological advances, there isn’t much legwork involved in comparison shopping for car insurance these days.
Check online. Many websites offer car insurance quotes for free, such as www.insurance.com. As you review different competitors, take note of the following items:
-Discounts applicable in your case
-The insurance company’s financial strength ratings, based on evaluations by Standard & Poor’s and/or A.M. Best
-Their consumer complaint ratio, because ‘cheap’ is useless when service is lousy
-Monthly and annual rates for the various types of coverage offered; keep the limits nearly similar to get a more accurate comparison between companies
-Their payment policies, such as penalties involved in case of late payment
Consult independent agents from your neighborhood. You may come across acquaintances who work in the industry and who are willing to give you substantial discounts.
Large insurance companies. These firms employ their own agents and can give you more affordable deals offering the same coverage. Check out direct writers too, such as Amica, AIG, or GEICO.
Insurance deductibles
Click here to see Part 3: How To Get The Best Car Insurance Deal Part 3
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