Car Insurance
Car insurance is something which we rarely think of, but all need. You may not spend a lot of time thinking about your policy unless you really need it. Most of us for this reason have little idea if we are really getting a good deal on our insurance. Learning a bit about car insurance can help you to avoid being taken in by smooth talking insurance salespeople and buying a policy with coverage you don’t really need.
The minimum coverage required by the states varies, and so do some wording in the no-fault insurance states but the concepts are the same everywhere.
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 part of your policy covers liability – the damage done to another car when you are at fault in an accident. This coverage is shown in numeric terms, such as 25/50/10 (this means that your insurance company will cover up to 25,000/person and 50,000/accident – the 10 means your insurance company will cover 10,000 in property damage/accident.)
Medical payments to others, covers anyone in the accident, regardless of fault. Your policy even covers you if hit while walking. If you have an accident and no health insurance, this part covers you. It also defrays expenses from an accident your health insurance doesn?t cover.
Your policy will also cover damage when you are hit by an uninsured or underinsured motorist, including hit and run incidents. If you have comprehensive and collision coverage as well as liability insurance, you may be able to add towing coverage to your policy for a nominal fee.
You can save a lot of money on car insurance by keeping these rules in mind:
1. Before renewing your policy, get some different quotes and compare the prices. There are a lot of websites which let you do this all form the comfort of your own home or office. Be sure to look for quotes for insurance with the same coverage as you have already.
2. See if your home insurance company offers a discount for buying your car insurance from them as well.
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.See if you really need to cover your own car. Unless you have a loan on the car, sometimes it?s cheaper to drop the comprehensive and collision portion of the policy. Calculate what the company pays you with the Kelly blue book rate, if you total the car, less the deductible. If this is less than two year?s premium, consider dropping the coverage and tucking the money away for a new car, just in case. Don?t be cheap where the liability portion is concerned. The increase cost is worth a little extra coverage.
5.Consider getting a beater. These older cars are great for commuting to work and other short trips. Carry only liability insurance for this car and save your good car for special purposes. Carry full coverage on the good car and save wear and tear.
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