|
Auto Insurance Tips
1. As you are researching insurance companies to
purchase auto insurance from, make sure that your first educate yourself
on your driving record. To get an initial estimate, insurance companies
will ask you to remember the number of tickets and accidents you have
had in the last x-number of years. The number of years that an insurance
company looks back changes from company to company. Therefore, if you
have a poor driving record five years ago, but in the last three years
you have improved, look for a company that adjusts rates according to a
three-year record. Also, companies use a CLUE (Comprehensive Loss
Underwriting Exchange) report from Equifax to determine your rates. You
can purchase one, and you might consider it as you are shopping around
for insurance companies.
2. Purchasing a car brings up many questions about how your insurance
will be affected. If you are using a loan, most lending institutions
require that you purchase both comprehensive and collision. Insurance
companies take a vehicle’s safety features and the cost of repair into
consideration when they are setting insurance premiums. Generally, the
vehicle that has the most safety features and that would be the least
expensive to fix would be the car with the lowest premium. Using this
criteria, exotic cars would be the most expensive to insure because of
the cost of repairs if the car was damaged. However, sedans would be the
least expensive because they are reasonable to fix and have many safety
features.
3. When you get married, think about combining all of your cars and your
spouse’s cars onto one policy. Holding one policy may be less expensive
than holding two separate ones because of the discounts that could be
available. Check with your carrier to see whether they offer discounts
if you insure multiple cars with them. Some insurance companies also
lower insurance premiums for males under the age of twenty-five who are
married (males generally are not as aggressive when they are married,
and less aggressiveness results in fewer accidents and speeding
tickets).
4. The theft of a car is a traumatic experience. In case of theft, you
should keep copies of your license, registration, and insurance in your
home. Also, if you have updated your car (adding stereo equipment, new
tires, etc.), you should keep receipts of those purchases. You should
also have some sort of security system on your cars (most new cars come
with these systems installed; such systems also lower insurance
premiums). If your car is ever stolen, you should contact the police
first and then your insurance company. Your insurance company should
work quickly to get you into a rental car while the police are
investigating.
5. Personal injury protection is coverage that pays for the medical or
funeral expenses of you or your family if you are injured in an auto
accident. Personal injury protection is a smart addition if you have
poor health and life insurance. However, if you have health and life
insurance policies that would offer sufficient coverage in the event of
a fatality, personal injury protection is an additional coverage that is
not needed. If you are looking at reducing your rates and you already
have medical coverage from another source, you could reduce the amount
of personal injury coverage on your auto insurance policy.
6. Uninsured and underinsured motorists protection is essential to your
insurance policy. Uninsured motorists insurance is required in several
states, and it covers bodily injury when an accident occurs with an
uninsured driver or a driver of a stolen car. It also covers hit-and-run
accidents. Underinsured motorists coverage pays the balance of medical
costs up to the policy limit when the at-fault motorist’s insurance is
insufficient to pay for all of the costs. Because of the prevalence of
uninsured and underinsured motorists, you should purchase a high limit
of uninsured and underinsured protection as it will, in the end, cost
much less if an accident occurs.
7. Adding teenage drivers to your insurance is an expensive proposition.
As you are considering purchasing insurance, consider a few factors:
first, females generally cost less than males to insure; second, shop
around for insurance companies that offer discounts for driver’s
education classes, good grades, and driving logs; third, as you are
insuring teenage drivers, your premiums will be lower if the drivers are
occasional drivers; fourth, teenagers have a high accident rate, so
consider purchasing high liability coverage and lower comprehensive
coverage; and fourth, the type of car teenagers drive—whether it is new,
sporty, or exotic—will also determine the premiums.
8. When you are purchasing auto insurance, consider paying the complete
premium when you sign up. Insurance companies generally offer discounts
for those that pay the premium up front opposed to over a period of
months. Paying in full at the beginning of the insurance period reduces
an insurance company’s administrative costs in processing and checking
your payments on a monthly basis. Paying up front is the most economical
option.
9. Motorcycle insurance can either be purchased through a company that
specializes in motorcycle insurance by creating another insurance
policy, or it can be purchased through your auto insurance company. Many
auto insurance companies offer motorcycle insurance. A miscellaneous
category on the policy can insure motorcycles, mopeds, and motor homes.
Adding motorcycles onto an existing policy can be more economical than
creating a new policy. Also, if you do not ride your motorcycle in the
winter, reduce your coverage for the motorcycle during that season. If
you are not going to be riding it, why purchase expensive coverage?
10.If you have a child visiting for a period of time and that child
would like to use your car, you should check with your insurance company
about whether you should add your child back onto your insurance policy.
Personal insurance policies cover you, your family, your friends, and
any of your associates that drive your car and do so believing that you
would have permitted them to drive it. In the case of a child using a
car on a consistent basis over an extended period of time, you should
check with your insurance company to see how many consecutive days a
child would need to drive a car before adding that child onto your
insurance. |
