Are you convinced that you own the right car insurance? Does it provide you with enough of coverage? Is it the best priced deal?

It is very common to most of the car insurance policy holders to feel complacency with the coverage. It reminds me of those who could not take eyes off their painting or are lost in words while praising their poems. People always tend to suffer from a lingering feel of satisfaction with whatever they have, buy or create. One of the reasons for such behavioral pattern is they don’t look around.

Most of the motorists overlook importance of comparison when it comes to car insurance policy shopping. If you spend time to compare the deals available, it is more likely that you will discover some car insurances policies offering more coverage or the same amount of coverage at cheaper prices. In either of the cases, you just end up being a loser. Just like anything in this world, you should compare the coverage as well as pricing in order to get the best deal.

Do you need a different auto insurance policy?

It is more likely that the amount and type of coverage that you required at the time of buying an auto insurance policy have changed over time. There is a strong difference between a house and a car. The value of your home appreciates over time but that is not the case with your car. The older the car, lesser it is valued. And if you have purchased your car on loan, you might not require the same level of coverage once payment is made in full.

By switching to a policy providing less coverage, you can save a great deal of money on your car insurance policy.  The same applies to your health insurance policies as these also need a change. Whether it is your health insurance or car insurance policy, it needs a revisit from time to time in order to make sure that they serve your purpose for now and in immediate future. In fact, shopping around a year could give you multiple benefits.

And it is never mandatory to stick with your present company when you have decided for a change. Shop around if you can get more benefits from other companies. If you find one, go in favor of switching insurer.

Consult with your agent

Even if you are represented by an agent, you should shop around in search of the best deal and insurance provider. However, you must not go for an immediate switch after finding a better deal, especially if you are happy with your present insurer’s customer care service. Talk to your agent freely and tell him about the better deals you have found out. The agent may successfully negotiate with your insurance company to thrash out a deal that matches your price point and gives coverage that you have wanted.

If he can do this, it will be better for you not to change the company. However, if the company refuses to lower insurance premium or give adequate coverage, it is high time to change sides.

Steps to Ensuring You Have Proper Coverage for Your State

When it comes to having auto insurance, a surprising number of American drivers chose to play Russian roulette. They drive without insurance and hope they do not get caught. Even though forty-eight states require auto insurance, 13 percent of American drivers are completely uninsured. The figure is much higher in many states.

Moreover, most state’s liability insurance minimum requirements have not been updated in a number of years. So, the minimums are not in sync with the financial costs of car crashes. The average amount of a claim is about $20,000. Serious or catastrophic injury claims can easily be eight or ten times that amount. The minimum coverage amounts in most states barely cover these average losses. In some states, the minimum coverage levels are too low to cover even these average expenses.

Uninsurance

Most states have very large fines for uninsured motorists. These individuals are considered “scofflaws” who knowingly flaunt a legal requirement. So, they are punished accordingly. In fact, many states tow away uninsured vehicles on the spot. Therefore, in addition to a huge fine, a family may be deprived of transportation.

There are noneconomic costs as well. Every time uninsured drivers go down the street, they look frantically for police officers. Those flashing red lights in the rear-view mirror give all drivers a sinking feeling. But the feeling is even worse if you know you are in the wrong.

Auto insurance coverage brings peace of mind like few other items can do. Moreover, most auto insurance companies handle a large volume of policies. So, this peace of mind is surprisingly affordable.

Underinsurance

Simply having proof of insurance in the glove compartment is not enough. Choosing the right auto insurance is also very important. Although there are no fines or other such penalties, underinsurance is almost as costly as uninsurance.

Only two states have bodily insurance minimums above $25,000. In a serious accident, the plaintiff’s medical bills could be many times that amount. Most states have property damage minimums of about $40,000. Most all new cars cost at least two or three times that amount.

In a civil lawsuit, if the plaintiff’s damages exceed your policy maximums, the insurance company will not make up the difference. That money usually comes out of your pocket. Even if the plaintiff’s damages exceed the state’s minimum policy requirements, you are still financially responsible for the difference.

How Much Insurance Do You Need?

Pay close attention to the relationship between the deductible and the premium amount. Typically, the higher the deductible, the lower the premium. A high deductible is a good way to increase your coverage without dramatically increasing your premiums.

Second, begin accumulating an emergency fund. Most policies default to a $500 deductible. Once you have $500 in savings, increase the deductible to $1,000. In this way, you’re not over exposing yourself to financial risk. Instead, you allow the insurance company to deal with that risk, which is why you have insurance in the first place.

As a very general rule of thumb, 30/60 coverage is probably good for bodily injury ($30,000 per person and a $60,000 maximum for all occupants). $80,000 in property damage coverage is probably a good idea as well.

Auto Insurance Tips that Every Car Buyer Should Know

Do you have your car insured? If you do, are you paying the right amount of insurance premium? Insurance companies consider a number of factors when they decide how much their customers will pay every month.

These factors include age, profession, yearly income, accident record, marital status, and many more factors.

When auto owners search low premium car insurance, here’s something they should know:

What does the cost of auto insurance include?

Coverage can pay for injury and death in hit and run cases, and even lawyer’s fee. Property damage claims can also be covered. However, car insurance may or may not cover medical bills. Check with your state and specific auto insurance policy for specifics.

In different ways, auto insurance policies can save your car. Collision coverage is a prime aspect of any auto insurance plan. In case your car is damaged by an accident, collision coverage bears the cost up to its book value.

Vehicle type

The price of the vehicle affects the premium amount. The repair cost of the car in the case it is damaged, and additional charges, are considered when the premium is calculated. Because it’s costly to repair expensive vehicles, the premiums are usually high.

This is more or less the same everywhere. Whether you are buying auto insurance Rochester, NY or any other location, you can gauge the probability of the vehicle or its parts being stolen by checking the records from Highway Loss Data Institute or the Insurance Institute for Highway Safety.

SUVs or sport-utility vehicles come with the highest insurance premium. SUVs are fancy cars. But that’s not the only reason their insurance premiums are so darn high. There are other reasons. SUVs are quite likely to get stolen. Small vehicles with 2 doors come with high accident costs, so their insurance premiums are also high.

Personal history

There are certain factors related to the auto owner’s personal life that play a key role in deciding whether you’ll get a favourable insurance quote. Such factors are the owner’s credit score, marital status, age, driving history and gender.

Young men often drive recklessly while older people from both genders drive slowly and cautiously. Hence, young men may have to pay a higher premium. Interestingly, married men who have had less road accidents pay less premium than unmarried women, respectively.

If you are a single male, a clean driving record is the best way you could lower premium on auto insurance. But that’s not all.  Ever wondered why people living in urban areas pay more premium than people living in rural areas? That’s because a less number of accidents take place in rural areas than urban areas.

Now that you know the factors that affect auto insurance premium rates, here are some quick tips to help you save on your auto insurance premium:

Uninsured& underinsured motorist coverage

Why is it important to get uninsured& underinsured motorist coverage? Because you could match it with your bodily injury liability limit. If your car gets hit by another car leaving you injured and the medical bills exceed your policy limit, uninsured/underinsured motorist coverage can fill up the gap by paying those bills.

Everyone chooses a policy in accordance with his or her financial ability. In case you feel the limit of the policy chosen by you is not sufficient, go for increasing your uninsured/underinsured motorist coverage to match your bodily injury liability limits.

Compare the policies

We compare retail prices before making a purchase, right?  We should do the same when buying auto insurance. While comparing, we need to check deductibles and coverage limit. Policies that come with high deductibles require policyholders to pay less premium. As for coverage limits, the amount of coverage and types of coverage are both important.

Voluntary excess amount

Negotiation can be key to get the best deal. Promising to increase voluntary excess is a form of negotiation, which can get you a less expensive auto insurance policy.

What exactly is voluntary excess?

It’s a commitment that if you cause an accident, you’ll pay more towards the recovery and treatment of the victim. Such a commitment can bring the cost of premium down. There’s a caveat, though. Successful negotiation is involves bending, but not bending too much. When you promise to pay too much, you might not have a good deal.

Check car security discounts

Securing your car can get you a discount. Installing an alarm, approved by the insurance provider, or even a tracking device, is a great way you can make your car secured. Two other important discounts are:

  • Reduced mileage
  • Not adding young drivers

Reducing miles can save you a good deal of money. Some drivers lie about annual mileage. Please don’t ever do that. If you are caught, your claim will be at risk.

As for adding young drivers, we’ve already mentioned that a driver’s age affects your premium cost. The younger they are, the more premium you must pay as young drivers are more prone to cause an accident.

Summing up

Auto insurance is among the major insurance policies in the insurance marketplace. When shopping for a policy, follow the tips given here to help find the most comprehensive coverage at the least expensive rate.

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