It can be scary to let go of your safety net and make the leap. It can be daunting to fly solo, especially when you are shopping for something so important and complex as auto insurance. If you don’t speak insurance-ese, you might feel like you’re spinning your wheels. Relax, and enjoy the ride. Let’s take a look at the truth about how to shop smart for auto insurance when shopping.
You must first determine what type of auto insurance you require. There are four main types of insurance coverage.
1) Liability. Liability is required by most states. This is the insurance that will pay the bill if you run into another motorist on the roads. Personal injury, vehicle damage and personal property are all covered by your liability. You don’t want the car without it, but you must have it.
2) Comprehensive. Comprehensive coverage covers your car against “Acts of God,” such as the tree on your front lawn giving up and falling on your Taurus’ roof. You’ll be responsible for paying the damages if you don’t have comprehensive insurance.
3) Collision. Your liability insurance will cover damage to other vehicles and property if you are in an accident. However, it won’t cover your personal injuries. Collision will fill in the gap to ensure that you don’t lose your car for several weeks, or even months, after an accident.
4) Uninsured motorist. A rising gas price and a weak economy mean that more drivers are driving on the roads without any insurance. If you are involved in an accident with one these people, your uninsured motorist insurance will pay the bill. This will save you from endless court battles and years of waiting for the right compensation.
Let’s now talk about the various players and how much you will need to insure your auto.
You will have to meet minimum liability requirements for auto insurance unless you are in a no fault state. However, it is not enough. Experts recommend that you have at least $100,000 per person and $300,000.00 per accident in liability. Also, you should not carry less than the vehicle’s total value when it was new.
Even at the highest levels, it’s not as difficult to find cheap auto insurance as you might think. When you are looking for auto insurance quotes, there are three things that you should know.
1) Compare prices! It may seem redundant but there is no one size fits all for auto insurance companies. Each company has its own rates and rules. You need to shop around for the best auto insurance deals. Nine out of ten, your first offer won’t be the best.
2) Discounts. Seriously. It’s amazing how much insurance can save you money. Before signing the dotted line, make sure that every safety and security feature on your car is documented and in working order.
3) Raise your deductibles–but not too high. As a general rule, the higher your deductible, the lower your premiums. You shouldn’t make your deductibles too high that you won’t be able pay the money. However, it’s a good idea to limit the amount you set. By increasing your deductible from $100 up to $200 you can save hundreds of dollars a year on premiums.
