Car Insurance
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Car insurance is a type of coverage designed to protect you in the event that an accident occurs. There are multiple types of coverage. States may require people to keep the bare minimum amount of auto insurance, but some people prefer to pay a little extra for full coverage. It’s a good idea to compare auto insurance because the monthly premium and deductible may be different. The premium is the amount that must be paid each month to keep the policy valid. The deductible is the amount you pay in the event you need to file a claim. There are a few very important things you should consider before selecting an insurance policy.

Insurance Cost

You should consider policy costs by calling to get quotes. Actuaries determine an insurer’s level of risk by looking at how likely the person is to get into an accident. If you are less of a risk, then your insurance premium is lower. Other factors like age and geographic location can also impact your score. It’s a good idea to contact an insurance company every six months to get a new quote. This is particularly important if you’re trying to find insurance after getting into an accident. The rates will decrease as time after the accident passes.

Your Personal Needs

If you live in a no-fault state, then you will be obligated to cover your own medical expenses in the event an accident occurs. You may also need to have full coverage. This is usually required if you purchase a car with an auto loan. The loan company needs to ensure it will be repaid in the event the vehicle is totalled. Minimum coverage is almost always cheaper. You may be interested in comprehensive coverage to protect against damage issues that go beyond accident costs. Comprehensive coverage may protect against fire, vandalism and theft.

Choice of Vehicle

Your rates may be higher if you drive a vehicle that is prone to accidents. A Honda Civic is almost always cheaper to insure than a sports car. If you drive a riskier vehicle, then you may want to find a company willing to provide cheap insurance rates. Some companies are willing to insure high-risk vehicles at relatively affordable rates because it gives the business a competitive advantage. The smarter way to get car insurance is to get multiple quotes before you make a decision. Niche companies may be willing to bear the risk because they are competing against the huge conglomerates.

Payment Options

Some companies make it easy to make car insurance payments, but others might turn it into a challenge or a chore. Some businesses allow you to pay the entire annual balance in full at the start of the year. Some companies offer longer grace periods if you are unable to make a payment. If the policy lapses, then you aren’t covered in the event an accident occurs. Most modern companies offer flexible ways to pay, but you’ll want to contact the specific insurance company to ensure your payment method is covered. Some companies now allow mobile bill pay. This is useful for people who need to make payments in their car or at the office. If you have to pay with cash, then you might want to live close to an auto insurance branch. It can take days for some companies to receive and process mailed cash payments.

Company Reputability

You are probably familiar with many big reliable insurance companies, but all insurance businesses are still subject to risk. A poorly managed insurance company can go bankrupt, and that could potentially mean you will lose coverage in the event you file a claim. States have a guaranty fund designed to protect the insured in the event that an insurance company becomes insolvent, but companies shouldn’t rely on this legal protection as a selling point. Reputable companies will process your payments efficiently and make it easy to file a claim.

Potential Discounts

Many auto insurance companies reward drivers for doing things to reduce their risk. If you are a low risk to the business, then it’s cheaper for the company to insure you. Auto insurance companies actually prefer low-risk customers because these businesses make more money when people do not file claims. Customers who have not been in an accident for years should qualify for a good driver discount. Modern insurance companies typically automatically apply these discounts. Some companies offer defensive driving discounts. These discounts require a driver to take a course on ways to avoid collisions and dangerous weather conditions. If you complete the course, then you’ll usually get a significant discount on your monthly premium. 

Companies all offer their own types of discounts, and the amount they’re willing to reduce your monthly premium will vary. It’s a good idea to examine the options and ensure these discounts will apply to the quote you receive. Whether you are just starting with your new car, you need an immediate replacement, or you just don’t have a lot of cash or credit, buying a second-hand car and end up being a great alternative to buying a new car. If you are looking to save on car insurance, it is best to take your time to get the car that will not only suit you best but will meet your needs so that you can save on money later down the road. Buying a used car can be an adventure if you know what to look for ahead of time.

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