How Actually Reading Your Policy Can Save You Hundreds on Your Car Insurance

They promise it on TV-car insurance coverage that is 10-20% lower than the current car insurance rates of “leading competitors”. What does that actually mean? This doesn’t necessarily mean that they are giving out low rates of insurance like candy. Smart, savvy drivers who take the time to understand their car insurance policies will be able to save a lot of money each month.

It’s essential to understand the details of your car insurance coverage, its limitations, and what your insurance company charges you. This will help you save money. You want to know how this will happen? Right. It’s going to take some time to read your car insurance policy from front to back.

Stop banging your head against your desk. You are only going to cause more harm than good.

Is it possible to understand the details of your policy without ever reading it? Well, yes. Ask your agent. You can ask your agent about your coverage, the coverage you have and how to file a claim. They won’t tell you everything. They probably won’t. They are in high demand and don’t have the time to spend on the phone explaining your coverage. It’s not a good idea to take responsibility for your information and leave it in the hands of someone else.

Types Of Coverage

You should know exactly which type of coverage your car insurance policy provides. They aren’t all the same. However, it’s a common mistake made by young drivers (especially if they don’t know the difference between comprehensive and liability…if I had one ). These are the basic types of coverage:

a) Liability. This will pay for all the other people’s medical bills and property damage. It saves you the trouble of digging to the bottom of your savings to cover it.

b) Comprehensive. Although they may have thrown God out of schools, the expression “acts of God” is still relevant in the car insurance industry. Hail damage, wind damage and other acts of God are all examples. Your comprehensive coverage will include it.

c) Collision. Do you know how much your car insurance company will pay to fix your car if you cause an accident? You’re correct if you didn’t guess anything! You’ll be responsible for your auto repairs if you don’t have collision coverage.

d) The Uninsured Motorist. There’s no reason why uninsured motorist insurance might be desirable for drivers, with the expected rise in uninsured drivers to 10% by 2010. It’s not clear why.

Maximum Coverage Levels

Another thing to know about car insurance rates and policies is what your maximum coverage is. While it’s nice to have liability insurance, how will you be able to cover the costs of your accident? While you don’t need to spend a lot of money each month to pay your insurance, it’s not a good idea to be underinsured. It almost never works like that.

Your checkbook will pay the price.