Auto Insurance Tips.

When searching for auto insurance it is best to give the company as much information as possible to enable it to provide a reasonable quotation. Whilst you wish to keep the premiums as low as possible, you should not be evasive with answers to their questions or be economical with the truth.

You should have a good idea of the sort of cover that you want – if not read the article below; but are you aware that by providing the prospective insurer with information like your attendance on a safer driving course may reduce the cost of your premiums? Have you any insurance already? For your motor cycle or property? Many insurance companies will offer discounts for insuring several items through them – it may not be a large sum but it will reduce your premium.

If you are a young driver insurers are only too ready to penalize you, oops, sorry, load your premiums. Actuarial statistics is what they will quote at you! If you have no car but rely on your parents then you can overcome the “loading” by taking the safer driving course mentioned above, or suggest to your parents that perhaps they would like to put you on their insurance! Worth a try. Nothing ventured, blah…blah… Normally if one or both of the parents have a good driving record, their child can be added to the policy at an affordable price. You can always barter the cost by saying you will clean out the car, or something.

What about taking a higher deductable? What are you on Shannon I hear you say? Well, by increasing the amount that you are willing to contribute in the event of an accident, the insurer is usually willing to decrease the premium on the auto insurance. Another tip is to install anti-theft devices on the vehicle. A vehicle is stolen every few seconds in the US alone. By investing in alarms, tyre locks and hood locks this will greatly reduce the chance of your vehicle from ending up as another statistic and your premium will reduce significantly.

As I stated at the start of this article, the more information that you give the insurance company the better chance of receiving a reasonable quote for auto insurance.  

What Type of Auto Insurance Do I Choose?

With the abundance of comparison sites now available on the internet, it is possible to obtain competitive quotes from a number of sources. However, not everybody understands which auto insurance cover is the best for them. Some people out there are either driving with too little cover or too much. Make sure that you are not one of them.

Comprehensive cover is the “all singing all dancing” type of cover offered, and it attracts a hefty premium. For those who require protection from additional damage due to non-collision incidents such as fire, flood and theft it is ideal. If you live in an area with a high crime rate then you may want this cover, but dropping it can save as much as 25% on the premium, although keeping the vehicle in a garage will save you some money.

Auto insurance for liability for bodily injury for the most part depends upon the minimum amount of coverage required by your state. You are responsible for the medical bills incurred by somebody in the other vehicle if you cause an accident. Coverage may be as little as $20000 per accident or $10000 per person. Many companies also give an option of liability for property damage.

Let us now have a look at Collision cover. As the name implies this will take care of damages caused by any sort of collision. Side swiping another vehicle, taking out a telegraph pole or just sliding off the road and flipping the car, the insurance will take care of the damages. Good to have for a new vehicle, but if you’re running around in an old clunker is it really worth it?

You will no doubt be offered medical expenses cover when taking out auto insurance. This will pay all medical expenses and /or funeral arrangements following an accident that is not your fault. Some providers allow you to choose the level of cover offered under the policy. Therefore a $6000 limit will allow you and every passenger to be covered up to $6000 for medical claims after an accident involving your vehicle.

No-fault insurance whilst it is mandatory in some states is only an option in others. It covers injuries and property damage in any accident regardless of who is at fault. Also known as Personal Injury Insurance it can be very expensive, and so many drivers do not bother with it.

Also available is Emergency Road Service cover which will pay for your vehicle to be towed due to breakdown.

These are just a few of the types of auto insurance available to you. You should determine what you need and shop accordingly.

Why the Need for Auto Insurance?

OK, so you’ve passed your driving test – the easy part; and you’ve seen your dream car – or should I say, one that you can afford to buy! What next? There is the little item of auto insurance to think about. In fact it would be better to check this before paying out any money for a car otherwise the cost may be higher than what the car is worth!!

Most people will need to deal with an auto insurance company at some time in their lives. Whilst you may not drive now, or live in a city where driving is not a necessity, life has a habit of changing and turning things on their heads where insurance for your motor becomes a must.

So why this need for auto insurance? In a nutshell, it’s the law in most states unless you live in Tennessee. Failure to carry the minimum amount of auto liability insurance, or, in the case of Tennessee financial responsibility is in the vehicle at a all times, you may find yourself with a hefty fine, loss of your driving license and even jail time. Apart from the legal aspect of the need, auto insurance is sound financial planning. Something that can save you from devastating financial ruin.

Well, following what can be a large capital outlay, you may wish to protect it as much as possible against all kinds of uncertainties that may cause some sort of bodily damage to the vehicle. In other words, obtaining auto insurance will give you protection against loss should you be involved in an accident by safeguarding the investment in your car. Pay for those hefty medical bills if you are unfortunate to be involved in an accident. Protect you from costly damage claims of an accident-related lawsuit, and also non-insured and under insured motorists.

So to recap:-

1)      Auto insurance is the law – and you are fully aware of the consequences of ignoring this law.

2)      Auto insurance can save you from financial meltdown or possibly bankruptcy – consider the costs of even a short stay in a hospital without surgeries and advanced procedures. These can run into the tens of thousands of dollars.

3)      It is necessary to protect your capital outlay in the purchase of the vehicle, and for some, the repayments of the loan taken out to acquire that vehicle.

Auto insurance is a must-have wherever you live, and, dare I say; if you can’t afford it Keep off the Road!