There are many terms that are specific to auto insurance, and they can be confusing. At times, they can cause such confusion. In this article, these terms will be explained so you can know what your insurance agent is talking about. By knowing these terms, you can make better decisions when buying an auto policy.
One easy way to reduce insurance premiums is to drive less. You may find that your insurance company will lower your rate if you lower your annual mileage.
Make sure you understand the different types of automobile insurance coverage before you purchase it. There are a variety of considerations involved in calculating the final cost of vehicle insurance. One kind of coverage that is almost universally required is bodily injury liability. This coverage pays for legal fees, injuries, or deaths resulting from accidents that you cause.
Many states require that you must have liability insurance if you own a car. As a responsible citizen you will need to determine the insurance coverage required in your state, and make sure you follow the law. If you’re uninsured and happen to be in an accident, no matter if you’re at fault or not, you will be liable for both the monetary consequences and the legal consequences for driving without insurance.
A large part of your monthly car insurance bill will depend on what kind of vehicle you buy. You may be attracted to expensive luxury cars, but your insurance rates will come at luxury prices as well. The most cost effective choice is to find a simple, yet safe, vehicle that you like.
If you need additional coverage, look into optional insurance packages. Though your premium rates may rise, you may find that these options are worth it. Uninsured motorist protection is a means to protect yourself from drivers who do not have insurance.
Take the bus or carpool. Insurance companies appreciate their customers being responsible and driving less miles is one way to show them. Letting your agent know that you carpool or ride the bus may help him or her find you a discount that will reduce your premium.
You are just insuring the car’s driver when getting an auto policy. Many times people will let a friend borrow their car, and if they get in an accident, the insurance refuses to pay. You could always pay more for insurance so other people can drive the car.
Instead of paying your automobile insurance on a monthly basis, consider saving money by paying in 6 or 12 month increments. Your auto insurance company may add three to five dollars to your premium. This can quickly build up. Adding another payment to your monthly bills can create a hassle. The fewer payments you have to worry about, the better.
When purchasing new auto insurance, you should always be sure you have property damage liability. Damage liability insurance covers any accidental damage that you are liable for. Only three states do not require this. This sort of insurance will protect you if you are involved in a crash.
Think about buying an economy sedan and getting rid of your sports car. Generally, it costs more to insure a sports car. A low-profile automobile is a great choice. When the vehicle has a large engine, or is a racing motor, it will be more expensive to insure because people have more accidents with cars like that. Sports cars are also more likely to be stolen, so they cost more to insure.
If you plan on moving soon, look into how your new home will affect your insurance rates. The insurance companies look at the theft rate, and will raise the policy if you live in an area where that is high. If you live in a city, you will also have to pay a little more for your car insurance compared to living in a suburb or rural area.
We hope to help guide you through the “auto insurance maze” so that you arrive at the best decisions. Education is the first step to conquering any confusion.