Although you have purchased your first car and decided to insure it, you aren’t sure where to begin. Sometimes our desire to save money can lead us to go wrong. Once you decide to insure yourself independently, mistakes are quick to occur. It can work sometimes, but it is best to speak with an expert – an insurance agent or broker. Although their services are not expensive (or even free), they can be very useful. They can explain the differences between policies and the meanings of certain terms. They will also be able to tell you the prices and discount of different insurance companies, and help you choose the best one.
If you are determined to take on all aspects of the insurance process yourself, it is important to be familiar with the key concepts and principles.
1. Consider your needs first. Consider the type of coverage that you need, and then determine how much money you have available to purchase it.
The amount of coverage that you place on your vehicle can affect how much insurance you pay. There are many factors that influence the cost of your insurance. You may be required to purchase a minimum of one or more of the following types liability coverage depending on your state.
a) Bodily Injury Liability
b) Liability for property damage;
c) Uninsured/under-insured motorist coverage.
You can also purchase other types of insurance that aren’t required in all states. However, you can still get it if necessary. Collision insurance, for example, covers your vehicle’s repair or replacement if it is damaged in an accident. Comprehensive insurance covers your vehicle against damage from an unknown party or natural disasters (e.g. theft, fire flood, flooding, vandalism). Personal injury protection or medical payments covers you and your passengers for various medical expenses that your health insurance does not cover.
2. Once you’ve decided on the coverage you need, it is time to find an insurance company. Before making a decision, you should research the market. Compare the terms and prices of different companies. You may be unable to deal with multiple insurance companies due to your busy schedule. There are many online services that allow you to compare the rates offered by top insurance companies. Many charge different premiums for similar coverage. If you choose the most suitable variants, make sure they have a good reputation. To find out if there are any consumer complaints about a company, you might want to contact your state insurance department.
3. Once you have chosen the company that you wish to work with, be careful when signing the contract. What is the most important thing about an insurance policy? The majority of people will answer, “It’s its price.” It’s not true. Every word in the contract plays a crucial role. It is important that you understand every word before signing it. You will be given a paper that is useless and the insurer will not pay you. Sometimes, the contract may require the client to observe traffic rules>>, to provide safety for the car>>, or to observe the standard safety rules>>. These seemingly innocuous phrases may have different meanings for an insurance company, which could make it seem very difficult for you. If you do not meet these requirements, the insurer could refuse to pay for damages. Avoid unclear terms in contracts and demand clear definitions. The insurance company will save money, but you won’t.
4. Finally, make sure to get every discount you can. While they may differ from one state to the next, most insurance companies offer these discounts:
Combination Discounts: If you have two cars, or your home and car insured by the same company, you can save as much as 20%
– Defensive Driving Classes – This can often be worth a 10% discount in premiums
– Retirement discounts – You can reduce your auto insurance costs, especially if it’s early in life. After you have retired, you’ll likely be driving less.
Discounts on the installation of safety and security devices such as car-alarms, tracking systems, anti-lock brakes and automatic seat belts.
– College-Kids-Who-Are-Far-Away Discounts – if at least 100 miles separate your kid from your car, you could save up to 40%.
– Marriage discounts – Car insurance rates can be reduced by marrying because married people are safer and more stable.
