Photo by Majiscup – Drink for DesignAlso known as vehicle insurance, motor insurance and car insurance, an auto insurance is a type of insurance purchased for vehicles like cars and trucks. It is an agreement between an insured person or group and an insurance company. The primary purpose of having an auto insurance is to provide you and your car protection against losses and liabilities incurred as a result of accident.
Here are important guidelines to help you make the right auto insurance choice.
1. Shop for insurance before buying a vehicle.
Insurance shopping must be done first before the car purchase. By doing so, you will have the opportunity to get the best deal possible, which will result to money well spent.
Compare insurance quotes first, at least twice a year as are always changing, before buying a vehicle. You could save much money if you shopped for insurance first before settling in one insurance company or staying with the same company.
Rates vary from company to company so you need to compare multiple company quotes to find the lowest rate. Free quotes are available online from insurance companies and independent agents – these are representatives of several insurance companies. There is also the possibility that you will change your mind if you find a much cheaper car. This is why it’s essential to shop for insurance first before buying a car.
2. Take advantage of discounts or premium reductions, or special insurance rates such as:
a. Low mileage discounts – the shorter the distance you drive, the lesser your premiums will be.
b. Good student discounts – some auto insurance companies offer discounts to students who are currently enrolled and have good grades.
c. Multi-car discounts – insuring more than one car in one policy can qualify you to a multi-car discount.
d. Other policies – reduce your premiums by availing of other policies with the same company.
e. The safe vehicle discount – earn discounts by installing safety devices like air bags as well as anti-theft devices like alarms.
f. Age (being at least 25 years old) – discounts are given to drivers who are 25 years old and older as they are thought to be more responsible.
g. The good driver discount – most insurance companies offer discounts for drivers who have completed a driver’s training course and those who have not had accidents or received tickets in the last 3-5 years.
h. Avoiding installment fees – this you can avail by paying 6 months and 12 months of an auto insurance premium in advance instead of monthly.
i. Prior insurance – those who have been continuously insured for the last 6 months or more are given discounts by some insurance companies.
j. Good credit score – insurance companies usually adjust rates by judging your risk. Therefore, the higher your credit score the lower rate is earned.
k. Car pooling and public transportation discounts – discounts are given to those who frequently use carpooling and public transportation as less driving means less accident.
3. Be knowledgeable about coverage
a. Do not pay for unnecessary coverage like coverage that amounts to more or the same as what the car is worth.
b. When adding physical coverage to a car considers higher deductibles. The higher the geductible, the lower your premium. Deductibles are your own money spent before the company pays for anything.
However, if you get involved in an accident, the amount of our deductible will be the same amount that you will pay before your insurance company starts paying for the rest of the covered damage to your vehicle. So, be careful not to get involved in an accident.
c. Avoid unnecessary or duplicate coverage. You might not need a medical insurance coverage, if you already have a health insurance policy. If your car is not worth much or if it’s an old car, a coverage for collision is not necessary. It’s also not a good idea to pay premiums for repairs on a badly damaged car that you will probably replace.
Author Fred Gagnon is an expert on providing tips and information on jewelries. He owns a wide collection of stunning, glamorous and chic jewelries. To learn more about jewelries, accessories, precious metals and gemstones, visit Vintage Engagement Rings and Pink Sapphire Rings.
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