Auto insurance can be full of complex wording and complicated terminology. At times, they can cause such confusion. The goal of this article is to help you understand a few of the common insurance terms that agents use. You will be able to make better choices about insurance if you understand the wording.
There are optional insurance protections available to you beyond the legal minimums. Making sure you have the right amount of coverage, even if the cost is a little more, is important in the event of an accident. Uninsured motorist protection covers accidents that involve the other person leaving the scene or the other person not having insurance.
Take the time to identify what you need your auto insurance policy to cover. While many insurance options are available, some do not make sense. If you are prone to accidents, you might want to consider taking advantage of collision coverage.
After market additions may be fun and something great to have on your vehicle, but they are also expensive and sometimes really not essential, so always make a wise decision on whether or not you wish to purchase these types of things. Custom rims and a top of the line stereo system are not really necessary for your car. Insurance companies will not pay for the damage or loss of any of these types of items.
Trade in your sports car for something more insurance friendly. Sports cars cost significantly more to insure than many others. Try a car that isn’t so high-profile. Larger motors cost more in insurance premiums as well. Nice sports cars also happen to be a greater target for theft, and your insurance premiums will reflect it.
If you increase your deductibles, you can save money. If you need to save money and you can put aside some money for a deductible in case something happens, this method can be a good thing. Your insurance rate will go down the higher your deductible is.
Comparison shopping for vehicle insurance is not only about which has the lowest total annual cost. By reading the fine print you will be able to find out the amount of the deductible you will owe if you have an accident, the total coverage on the policy and the upper limits of any benefits provided.
Get a listing of discounts from your insurance agent. Look at each discount to find any that apply to you so you can be sure to save money as much as possible.
Wait to cancel your current auto insurance policy until the point when you have another policy lined up. Even the briefest lapse in insurance is a huge risk to take, and your state may even fine you.
Remove any drivers from your insurance that do not drive your vehicle anymore. Having other drivers can increase your insurance, but if you remove them it can save you money on your premium, because that is one less person your insurance has to cover.
Most insurance companies offer significant discounts to those who drive less than 7500 miles a year. Driving less can be a great way to save more on car insurance.
You need to know how much coverage you need to carry, this may be daunting for some. If you have large amounts of money saved up, liability insurance is a safe bet. For example, if you have $50,000 of bodily injury liability and $200,000 in personal assets, and you are found to be at fault in an accident, the other party could sue you for the $150,000 in medical bills that are not covered by your policy. Having enough coverage to be safe is worth the price.
Keep careful records when you are involved in an accident. Insurance companies need documentation and proof. Have a digital camera handy to take pictures in case your get into a car accident. Think about keeping a camera in the glove compartment in case you need it someday.
If you have any outstanding traffic or parking tickets, be sure to pay them before switching auto insurers. Insurance companies are definitely going to review your driving record; you have no excuse for failing to resolve easy problems like paying the fines you owe. Taking care of these minor infractions is not just your responsibility, it can also keep your insurance costs down.
Having a tracker, alarm or immobilizer in your car can reduce the premium you pay for auto insurance. The more vulnerable your car is to theft, the more expensive it will be to insure. The more secure your vehicle is from theft, the lower the cost of your insurance will be.
Inquire if your insurance company has discounts that may reduce your premium. Insurance companies often give breaks to those who do not drive more than 7,500 miles in a calendar year. Taking public transit to and from work may also lower your premium. If bus service does not work for you, try finding a carpool buddy.
Many auto insurance outfits are happy to extend discounts to households that use the same insurance company for every member of the family. This can save anywhere from hundreds to thousands of dollars a year.
Don’t choose a policy before educating yourself on terms and options. Even though each state has slightly different requirements, fundamentals of insurance are generally the same. Understanding the basic concepts will help you determine which policies really give you good coverage before you make a final selection.
Contact your insurer immediately after selling or trading in your vehicle to take it off your policy. Obviously you don’t want to take a car off insurance until it has gone, but once it has do all of this as fast as possible to avoid any future costs that you can’t afford.