Auto Insurance Basics – Saving Your Money

Buying car insurance is kind of like ordering a gourmet cheeseburger: once you’ve got the “guts” of it, anything else is simply extra.

Food aside, many people buy the bare minimum in insurance coverage for their vehicles. But what they don’t know about their car insurance policy could cost them a lot of money.

Not only can they end up without additional “toppings” that could spare them later distress, pain and expense; they could also end up paying out a lot of cash on vehicle repair and medical bills unnecessarily.

Did You Know?

One of the best ways to save money on car insurance is to compare quotes side by side.

But before doing so, it’s smart to have some auto insurance basics under the belt. This builds a solid foundation that helps ensure that you get the right car insurance policy at the right price.

Consider these important facts:

o Every state requires drivers to carry auto insurance. Foregoing auto insurance coverage could result in license suspension or revocation, costly fines, high insurance costs, and even confiscation of personal assets if an at fault car accident occurs and somebody gets hurt.

o The insurance policy follows the vehicle not the driver. If somebody else borrows the automobile and causes an accident, the car insurance policy in effect on the at fault driver of the vehicle is the one that pays out-and higher car insurance rates may result.

o Items left in the car often aren’t covered under a traditional auto insurance policy. Instead, those things may be covered under a renter’s or homeowners policy, if one is in effect. Before deciding on an auto policy, talk to a licensed insurance agent, who can help determine the amount of coverage needed for those types of items in case they get stolen.

o Some auto insurance companies offer “accident forgiveness” that could keep premiums from going up in case of accident. Ask an agent about this type of auto coverage, which usually allows one or two accidents before raising auto insurance rates.

o The more you drive, the higher your vehicle insurance rates will be. Insurance companies base the price of auto insurance premiums partially on your mileage driven annually. So it just makes sense that those who drive more will have to pay more. To keep your mileage low, take advantage of other means of transportation available or walk whenever possible to keep your auto insurance rates low.

o It’s usually not smart to make small auto insurance claims. Though doing so may help get damages fixed, it may also cause car insurance rates to rise more than the cost of those repairs. Instead, set up a savings account which can be used for just such in case of an event like this.

o It’s cheaper to insure multiple vehicles under the same policy than under separate policies. Bundling vehicles together earns the insured a discount, and helps save money on the right car insurance policy.

o Some companies offer military discounts. For the biggest savings, let the insurance company know before shipping out both the return date and where the vehicle will be parked or stored in your absence.
With a clear understanding of principles like these, it’s easy to compare insurance quotes; choose the policy that best protects vehicle, driver and others on the road, and save money over the life of the plan.

Auto Insurance that Fits

Whether buying just the basics or topping them off with extras, the first step to saving cash on car insurance is understanding the basics.

Ready to see how much money you could be saving on your insurance?