By Allen Brown
Getting car insurance is a 'necessary evil' you'll have to wade through after buying the car of your dreams, or realities, just to make sure you're covered if you get in an accident. When you are deciding on the best insurance policy to buy, make sure to explore options with a premium you can easily afford.
People often find understanding what goes into insurance costs, and what makes premiums increase and decrease, boring and cumbersome. But, having some basic knowledge of insurance options and policies, will spur you on to finding the right insurance plan for you. Read through the tips and tricks highlighted below, as it will help your decision-making process and get you the perfect insurance for you and your car.
This is a sensitive topic for car owners, especially if they failed to note the insurance coverage they would actually need before buying the policy. Too often, these newly insured end up being burned when they discover they cannot file a compensation claim for a particular accident under the purchased policy.
Another point to consider is that each state has different "minimum" car insurance requirements that you need to follow. It's a must to know these requirements as a car owner and road user before you buy the policy. And those are the "minimums". Don't forget that you can always take out a higher insurance limit to protect yourself more.
Common insurance coverage includes coverage for: collision, comprehensive, medical or personal injury protection, liability, uninsured motorist (UM) or underinsured motorist (UIM), guaranteed auto protection (GAP), extended coverage, mechanical breakdown, and original equipment manufacturer parts (OEM) endorsement.
Most states will require you to have liability insurance coverage, in case of a fatal accident where you are at fault. Whatever your state requires, when you know the insurance coverage that you need for your car, it will be easy to decide on your liability costs and deductible amounts that you can afford, and help you decide on the policy you need.
This is the fun part of buying insurance because you get to be the center of attention,. Insurance company salespersons, or customer care representatives, will fall over each other to get you as a client, and hopefully get you to buy policies from them, provided you have a good credit score. This is a good time to compare car insurance companies, policies, and rates before deciding on which one is right for you.
Make sure that you get the annual and monthly rates for the different coverage options from all the insurance companies you contact. Also, find out about their payment policy, such as, when is the payment due? What kinds of payment plans are available? What happens if you're late making a payment?
Compare the companies' answers to these questions, their insurance coverage packages, and payment policies to see which ones have the least expensive coverage and flexible payment options.
Take it a step further then, by gathering 'intelligence' on your preferred company, such as looking into its financial strength ratings, client satisfaction survey, and the number of lawsuits they've been involved in due to defaulting on paying compensation claims.
Always look for discounts when considering which companies to buy policies from. Certainly you want the best coverage for the price, but getting a lower rate will allow you to get extra 'add-ons' to the policy as well. So ask. For instance, insurance companies give discounts for excellent driving records, car safety, and security equipment.
Other car insurance discount packages include low mileage; winter storage discounts; professional, university degree, occupational or association discounts; 'telematics' discounts, also known as usage-based insurance discounts; green car or environmentally -friendly discounts; alarm or tracking device discounts; retiree discounts; student discounts and student away at school discounts.
If you are considering a family insurance package, insurance companies give discounts to inexperienced drivers who have high-grade point averages. Also, you get better prices when you use the same insurance company for your home and auto policies.
This tip right here can save you from a long legal battle with your insurer. After you have ironed out details with your preferred insurance company regarding the policies you want to buy and payment procedures, make sure when you get the paperwork, that you take your time to read the key points of the policy.
Verify that the paperwork contains the coverage you've requested and priced. And, if you are insuring a new car, confirm that it is stated in the paperwork that the insurer will pay for original manufacturer parts when you file a claim for it later, because these are ways that insurance companies sometimes use to shortchange their customers.
These tips and tricks are not necessarily new ones, but they do reflect current realities, and will help you get the best deal from insurance companies when you go to buy your policy.
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