Many times when people look at an auto insurance policy, they see a lot of complicated terms that they might not know, and the wording can be very complex. Overall, it is a very confusing topic. The most important terms used by insurance agents will be defined for you in this article. Knowing what the agents are talking about will help you make better choices when it comes to auto insurance.
Make sure to check insurance prices before buying a new vehicle. Your insurance agent can advise you on the models of cars that can save you money on your premiums. Knowing the rates can help you in choosing the car that is best for you. If you choose a vehicle that has been rated safe, you may save a lot of money on your insurance premium.
It is a common belief that insurance premiums drop as soon as a young driver hits the magic age of 25. The fact is that insurance rates actually drop as soon as a driver turns eighteen if he or she is a safe driver.
As you shop for auto insurance, remember that your coverage may only apply to the driver named on the policy itself. Sometimes, people allow a friend to borrow their vehicle, but if this friend wrecks, your insurance company will not pay for the damage. You could always pay more for insurance so other people can drive the car.
Keeping a clean driving record is the best car insurance tip you can get. A car accident will increase your auto insurance rates the most. Know your driving limits, and avoid risks that could cause accidents. If you do not have good night vision, you should not drive after dark.
It’s possible you could remove a few of the coverage items from your insurance policy. For older cars, it is not really important to have collision insurance. Eliminating these coverages will save on your monthly premium. You may consider dropping comprehensive also, but since liability is on the driver you should not drop that.
If you bundle your insurance, you may pay less. This means you should try and purchase all your different types of insurance together. You will need to get good coverage and a good deal, you may need to get two insurance companies or policies to achieve this.
Don’t buy your teenager a car of his own. A better alternative is to have them drive one of your existing vehicles. Having them on your current insurance plan will save you money. It’s even possible to get a discount, if your kids get good grades.
Ask for a list of discounts available, or compile a list on your own based on the discounts offered. Use the list as a checklist to identify which discounts are applicable to you. You will be shocked at how you can save on premiums.
Hopefully, you understand many of the most common insurance terms, and you’ll be able to find an auto insurance policy that best suits your situation. When your decisions are informed ones, it is easier to feel confident about your car insurance choices.