An auto insurance policy may seem to be written with unfamiliar terminology and complicated clauses. You may find yourself feeling hopelessly confused and unsure of what anything means. In this article, every term associated with auto insurance will be clarified. Knowing what the agents are talking about will help you make better choices when it comes to auto insurance.
Try and avoid getting points on your license. Accidents and moving violations on your record will drastically increase your insurance premiums. If you cannot avoid an accident or a driving citation, look into going to traffic school to clean up your record and lower your insurance.
Avoid letting your coverage lapse to keep your policy rates low. Creating gaps in your insurance coverage can often be the result of switching carriers or policies. If your insurance company notices that there have been periods when you weren’t covered, you could be in for a costly rate increase.
You have options when it comes to insurance policies that are beyond the legal requirements for your state. If you use these options, your premium will increase; however, it may be worth it. Uninsured motorist coverage will protect you in the event that you are in an accident that involves either a hit-and-run or someone who is not carrying insurance.
Most auto insurance policies are actually issued on the particular driver who buys the insurance, not the car itself. Many times people will let a friend borrow their car, and if they get in an accident, the insurance refuses to pay. If you want a policy that covers additional drivers, be prepared to pay more.
Think about whether your car really needs those fancy, expensive accessories. You do not necessarily have to have seats that are heated or a booming radio. You may not be able to have your insurer reimburse you if you are in an accident or your car is stolen.
It is important to know about the different types of coverage. You should be certain that you have a policy that covers any possible incident. Liability only covers the damage you do to someone else and their property whereas collision and collateral cover your property as well. It’s also important to have insurance that covers non-collision-related vehicle damage and damages caused by uninsured drivers.
When looking for auto insurance, get quotes from various companies. Odds are, you’ll have to spend some time looking, if you want to get a really great rate.
If you drive no more than 7500 miles annually, you will likely qualify for a sizable discount from your insurance company. If you can lower your total mileage then you can save a significant amount of money on your insurance.
Talk to your own insurance agent before switching companies due to a quote from another company. Sometimes, your current agent can match any lower offers that you find. They would rather lower their rates than lose you as a customer.
The goal of this article was to help you navigate the world of auto insurance. Educating yourself about your choices is the best way to conquer your confusion when it comes to auto insurance.