Auto insurance is essential if you own a car. It’s better to be educated now than after an accident. These are 19 ways you can get the best coverage for your money.
1. Spend your money wisely
Spend your money on things that can make you broke financially.
Many people will pay a lot of money for a $500deductible but ignore the possibility that a $500,000 suit could end their life. Increase your deductible and your liability coverage. You will pay about the same premium as you are now, but your premium increase will be less. An increase in your total liability coverage to $500,000 from $300,000 will only add $60 per year for two cars.
The trade-off is how much you save on premiums vs. the risk you are willing to accept. Personal injury coverage can help you save money on your premiums. This coverage is also known as the medical payments coverage. If you already have insurance, it will cover your medical expenses after an accident. The coverage is basically the same twice.
2. Take a look at the liability coverage per person
Your agent should write your policy to ensure that the total amount per accident and per person is the same.
A $300,000 total liability means that $100,000 is often payable for each victim. Half of your $200,000 liability if you are sued for personal injury by an individual. The $300,000.00 worth of coverage you have should be equivalent to $300,000.000 in coverage.
3. Buy an umbrella policy
An umbrella policy covers your home and vehicles for liability, if you have substantial assets or plan to acquire them. These policies typically cost $200 to $300 per year and can provide up to $1,000,000 of coverage.
4. Good advice is well worth the effort
Get your advice from impartial, credentialed professionals. Experience is a key factor when choosing an agent. An agent who has had only one week of training is not the right choice. You should also look at their qualifications and industry credentials. Look out for those who are members the CPCU or CIC, and AAI.
5. Credit ratings with good credit are important
Your credit score is used to determine your insurance eligibility and your premiums. A good credit score equals affordable insurance.
6. Your insurance company will pay for your rental
Your policy should cover the cost of renting a comparable car if you are in an accident. Even though a week of your car being in the shop may not seem like a lot, rental fees can easily add up to hundreds of dollars.
7. Shopping around is a smart move
Prices for premiums can vary from one company to the next. Insurance policies can cost more than twice as much. You should get quotes from both independent agents and companies that are well-known.
Do not assume that a more well-known company will be more expensive. Insurance companies with high ratings tend to have the lowest prices.
Do not accept a quote. Ask for specific numbers about the coverage that you require. It is important to compare apples with apples.
8. Get discounts
Discounts are a great way to save money. You may be eligible for a discount if your vehicle isn’t in an accident for years. You may also be eligible for discounts on safety devices and anti-theft devices. You can also get a discount if you have more than one vehicle or have the same type of policy as your company.
Savings of over $100 per year can be made by paying your premiums annually rather than monthly. Good grades and driving classes can help you save even more money.
9. Teens who aren’t driving need not be covered
Your policy will be canceled if your teen is off to college or is not driving your car. Teen drivers can increase your premium by anywhere from 50% up to 500%. Your teen should be able to drive and get his or her own insurance. It is time for them learn more about insurance.
10. Older cars don’t need collision insurance
An older car doesn’t necessarily require collision insurance. The car’s value will outweigh the premiums. Ask your agent to tell you how much your collision insurance premium will go towards your car’s value. You might be able to save some money and still have enough cash for your car replacement.
11. Find the best service
A company must be responsive, reliable, and easy-to-deal with. There is a good chance that you will file a claim in your lifetime. A good agent will work with your to reach a common goal: your happiness.
An agent who is a good coach will be there to help you. An agent can help you with any questions and offer advice on how to present your claim. Do not settle for a 800 number that does not allow you to speak with a person.
12. Learn about the claims process
Ask the agent to explain the claims process to help you choose the right company. Ask your insurance agent if you are covered for used parts, generics or brand name to fix your car. Do you have a limited number of garages available? It is important to have everything written down.
13. Ask about diminished value
This is a hot topic in auto insurance. Is it worth less if a car is damaged in an accident? Should the insurance company pay for the car’s repair and replacement? Ask your agent about the state regulations and rulings regarding diminished value.
14. Call your agent as soon as you are involved in an accident
Most claims reports are subject to time limitations, typically 48 hours. Call immediately to make sure that everything is taken care of.
15. Keep claim records
Keep track of everything that happened after an accident. Dates, names and what was said. Keep track of who and when you spoke about the accident. Record any conversations over the phone. You can save all receipts, get estimates, and obtain a copy to the accident report.
16. Keep your claim moving
Get estimates and shop around. Jumping in immediately will help you save time and make everyone happy.
17. All factors should be included in loss estimations
You may be eligible to get the full cost of your vehicle if you total it. This includes your registration fees and sales tax. Get estimates from your agent.
18. Be patient with your adjuster. But, don’t be afraid to keep pressing
Like you and me, an adjuster makes mistakes. Keep your cool and politely move up the chain of command. All denials should be written with the reasons. Compare the explanation to your policy.
Your agent can make phone calls on your behalf. Ask for a review of the matter. You have the option to choose arbitration. However, you will only be responsible for half of the costs. This is often faster than going to court. Find out what customer satisfaction has been with arbitration hearings. Suing is your last resort.
19. You can cancel your policy if you change companies
However, you should not cancel your insurance before you have new coverage. There should be no gaps. You may be reported by some companies that you drive without insurance. This could result in your driver’s license being suspended. If you are sent a letter by the state, be sure to provide proof of your insurance.