An auto insurance policy may seem to be written with unfamiliar terminology and complicated clauses. This can sometimes be confusing. The most important terms used by insurance agents will be defined for you in this article. Once you know the meaning of these terms, you will be better able to make the right decision.
A good way to lower the price you pay for insurance is to simply drive fewer miles. A lot of insurance companies lower your premium when you drive less.
When thinking of buying aftermarket car additions, check with your insurance company on how much they will cover if ever your car gets damaged or stolen. Most of the time, they will not cover those unless they add value to the car, but that may not be a lot.
When you are in the market for a car, check the average insurance rate of each model you are considering. You can contact your insurance company or use online resources for information about which vehicles have lower premiums. You can make a better decision in buying a new or used car based off this information. The higher its safety rating, the lower your premium.
If you want to purchase additional items for your car, you should talk with your agent to ensure these things will be covered in your current policy. If you pay $700 for new tires that just add a mere $200 value to your car, you will not be reimbursed for that difference should your car be stolen.
Most states require liability insurance for drivers. You have the responsibility to be aware of coverage levels for your state, and to acquire insurance appropriate to those requirements. If you are uninsured and you get into a accident, you are breaking the law.
Carpooling or taking public transit can save you money on your auto insurance. Insurers love when their clients are responsible and they can reward them by lowering their mileage. By telling your agent you take public transportation, you could be in line for a discount that will reduce your premium.
Reconsider buying after-market add-ons for your car that you do not really need. A decked out stereo system or toasty heated seats are nice to have, but they are not necessities. Insurance companies will not pay for the damage or loss of any of these types of items.
Property Damage Liability
It’s imperative that you obtain property damage liability when you purchase vehicle insurance. The “liability for property” line on your policy covers damage where you are held responsible in an accident. It’s technically required in all states, except for three. If you are involved in an accident, property damage liability can save you a great deal of money.
Consider paying for your annual insurance cost in one payment. Insurers often charge a fee for making monthly rather than annual payments. Start saving now so that you can pay in full at renewal to save yourself future installment fees.
After reading this article, you should have the confidence to make your own decisions when it comes to purchasing auto insurance. Learning all that you can about your options is the most effective way in overcoming your confusion around auto insurance.