It can be hard to understand what there is to know about auto insurance. Sometimes, it can seem downright confusing. You will be able to understand these terms better after you read this article. Knowing the terms will make you a more informed consumer.
You need to understand the ins and outs of your policy and make sure that you are properly covered. Auto insurance includes several typical or common coverages, such as bodily injury or medical expenses. Collision and comprehensive coverages are sometimes optional choices that you must specify to be included in your policy. If you just have basic coverage it may not pay out depending on your insurance, make sure you coverage is adequate.
If car rental is included as part of your auto insurance policy, you may want to consider removing it. You probably never use it, even though you pay for it. If you don’t think you will need car rentals to be covered, remove it.
If all the drivers in a family want to be insured together, many auto insurance companies will offer significant discounts. If everyone is on one policy you can save hundreds or thousands of dollars a year.
As with any financial transactions, do keep accurate file records of when insurance premiums are paid. Having proof that you have paid your insurance can save you problems, especially if you receive a ticket.
It can be beneficial to write down all the safety features your vehicle is equipped with. Features such as car alarms and extra air bags can help add discounts to your insurance due to their safety features. Even after-market safety features help to reduce your insurance policy cost.
Ask the HR department if they special groups rates for their employees’ auto policies. Some employers secure group insurance rates for their workers. Some companies even offer increased discounts for employees with seniority. If the company does not have any special group plans in place, suggest that they consider looking into them.
If you’re insuring a teenager, check what it would cost to add them to a current policy, and then compare that to what their own policy would cost. Depending on the type of car your teenager drives, it might be cheaper to have them on a separate policy.
If you buy aftermarket enhancements for your car, determine the insurance consequences should your car get damaged or stolen. Insurance often doesn’t cover these parts separately, but only the difference between the value of the car with and without those parts, which is often not a lot.
You should not buy your teenager his or her own car. It is a good idea to let them drive one of the family cars. Adding a teenager to a family plan is much cheaper than insuring him or her separately. You may even be able to get a discount on your insurance if your teenager is a good student.
If you drive no more than 7500 miles annually, you will likely qualify for a sizable discount from your insurance company. If you are aiming to save some cash on your auto insurance, cutting back on the number of miles you drive could be a good idea.
Try to drive fewer miles each year to save money. Sometimes it is easier to purchase an inexpensive, fuel efficient car as a secondary vehicle than it is to cut your mileage on your primary car. Insuring two low mileage vehicles can cost about the same or even less than insuring one high mileage vehicle.
Hopefully, this article was able to help you through the maze of auto insurance and to give you confidence when making choices. A well-informed customer will make the best choice in auto insurance.