Handling The Costs Of Auto Insurance
In nearly every country in the world, every state in the US and every Canadian province, automobile insurance is mandatory and regulated by law.
One problem, though, is that we all need the best deal for our money. Because costs continue to rise we must look for strategies to reduce the expense and still find the best coverage.
There are several ways to accomplish this goal.
The internet is a great tool for acquiring quotes easily from multiple insurance companies, so make use of it. Get a wide variety of quotes from different companies online, and even from brokers, and you’ll have a good idea of what the market looks like and how the options stack up against each other.
But remember, cheaper isn’t always better, and you get what you pay for. Don’t go for the best bargain if it’s from a company that isn’t stable. You should get your insurance from a reputable company with a solid history backing it up.
Basically you should research a company, especially an unfamiliar one, before doing business with them. Sadly, there are some corrupt insurance companies in business.
Basic liability insurance is the primary part of a policy, and in many places it will meet insurance requirements. This basic form of coverage is for your liability for injuries or property damages that result from an accident.
On the other hand, with basic liability insurance providing minimum coverage there is the risk of financial and personal ruin. Your liability in an accident and too little coverage will leave you vulnerable to the other party?s attorney attempt to seize your personal assets. For this reason, having minimum coverage is very risky.
The cost of auto insurance is based on the type of vehicle that is being insured. Insurance categorized vehicles. For instance, a corvette or a convertible are placed in the high risk category and a less flashy car or sedan would be placed in a lower risk group. It is wise to consider auto insurance prices before making a new car purchase. By doing so, you might buy one that is in the lower insurance group, as well as easy on everyone?s eyes.
So it makes sense to think about what kind of money it would take to insure a car when you’re thinking about purchasing a new one. A car that looks good to your insurance company might be better than one that looks good to you personally!
Likewise, auto insurance companies also keep track of the types of cars that are most frequently targets for thieves. You’ll probably want a basic grasp of that list yourself.
It would not be cost-effective to over-insure your car and buy more insurance than the value of your car. The insurance companies have set prices on what they will pay out for each claim.
Don’t let yourself get tricked into buying fifty thousand dollars worth of coverage on a car that is worth half that! Consider all the aspects of insurance coverage you’re paying for.
It’s also not a good idea to under-insure. With basic liability insurance, will you be able to replace your car if it’s considered to be totalled? In that case you need extra coverage, though it will cost more. Generally if the car is worth less than $2,000, basic liability should serve your needs.
A very old car, over a decade or so, is definitely something you don’t want really expansive insurance coverage on. That is, unless you’re extremely confident in your ability to maintain it so far into vehicular old age!
A higher deductible or ?excess? (European) should be taken into consideration. The deductible is the part you are responsible for paying before your insurance pays out on a claim. A higher deductible, while a financial risk, benefits you by lowering your insurance policy?s cost.
Getting a vehicle without high mileage helps. So does, rather bviously, keeping your driving record squeaky clean.
Males under 25 years old are considered by the insurance companies to be high risk. Statistics have shown that this group is more prone to having accidents, making them more expensive to insure (to the insurers delight). It would be wise for these young drivers to drive a sedan until they are at least 26 years old and married. Then go and get that cool sports car.
In some cases there are ways to reduce your rates by taking advantage of insurance company incentives. Anti-theft devices, defensive driver courses and safety features all help to make your rating with the company increase and improve your premium rates.
Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance.