Auto insurance policies can be riddled with complex wording and terminology that you do not understand. At times you can become confused. This article can help you to better understand all the terms that insurance agents throw at you. Knowing the terms will make you a more informed consumer.
You must understand the various coverage types when buying car insurance. There are several factors that can effect the total cost of your premium, even if you’re only buying coverage for one car. If you accidentally hit someone, bodily injury liability will cover all legal costs and injury claims.
If you have a teen driver you should request two separate quotes, one with your child on your policy and one with your child on a stand-alone policy. Sometimes it is better to simply purchase a separate policy for the second car and your teenaged child.
In most states you are required to have a liability insurance in order to get your car on the road. As a responsible citizen you will need to determine the insurance coverage required in your state, and make sure you follow the law. You are breaking the law if you drive uninsured.
Your vehicle’s make and model is the number one influencing factor on your auto insurance rates. Insurance companies charge higher premiums for that high end luxury model you love so much. A less expensive, safer vehicle will end up saving you money in the long run.
You can buy additional insurance beyond the state minimum if you so choose. This type of extra coverage may raise your premium, but may also save you money in the long run. If you buy uninsured motorist coverage, your insurance company will pay out in the event of a hit-and-run accident or if you are involved in an accident with someone who does not have insurance.
Think carefully about buying after-market add-ons if you really do not need them. Luxury items are great to have, but they are things you can live without. If your car is totaled or stolen, your insurance will not reimburse you for the damage done to it.
Don’t do monthly payments for your auto insurance bill. It is common for insurance agencies to add around $4 to a monthly bill. This amount can add to your bill quickly. It can also become a hassle on top of all your other monthly bills. This is good incentive to lower the number of payments.
Car insurance rates can actually change based on location. The price of insurance will vary depending on where you are.
Do not buy your teenager a car. A better alternative is to have them drive one of your existing vehicles. Putting a teen on your policy is much cheaper than getting them separate insurance. If they get good grades in school or remain on the honor roll, they might even qualify you for a discount.
Using the sound advice from this article will help you to be confident that you are making the right choice. Being an educated consumer is a good way to combat your confusion when shopping for auto insurance.