In the previous article on Car Insurance – Getting It Right, we discussed why you need it and gave you a couple of good places to get started (GEICO and Hometown Quotes).
We know that the primary purpose of car insurance is to cover the cost of damages if an accident occurs, but we also know that it is very important to cover you and your family financially.
And, of course, to make certain you are getting the best auto insurance coverage for your buck you should shop around. Not only after you have decided upon and purchased your car insurance, but you should make it point to annually shop your car insurance quotes around.
Insurance coverages are business just like anything else and based upon their liability exposure and the amount of payouts they have incurred, the great price you got on your policy today may not be as great next year.
Let’s talk in a bit more detail on coverage and some of the factors that go into it.
Car Insurance Plans
Only the people named in the insurance policy, their spouse, children including legal and foster children, relatives in the same household and relatives directly related to the person who’s car is insured.
Types of Car Insurance
- Collision Coverage
- Comprehensive Coverage
- Uninsured/Underinsured Motorist Coverage
- No-Fault Automobile Insurance
What you pay for your car insurance coverages can be quite variable depending upon several factors that automobile insurance companies take into consideration when determining the cost of your coverage.
- Your driving records tops the list of variables and contributing factors
- The make and mode of your car… which in most cases influences your driving record
- The amount of deductible you are willing to carry
- Marital Status
- The state in which you reside
- Geographical weather conditions
- Average local repair and maintenance costs
- Your age
- Your gender
So what input or controls do you have when it comes to keeping your car insurance premium as low as you can possibly can? Good question. Here a few valuable suggestions.
Without doubt at the top of the list is your driving record… not that you have one… it’s that you have a clean one with no tickets and accidents. When it comes to your car insurance, safe driving habits save you big money!
As we talked about earlier… compare quotes. Get at least 3 different quotes. Here are 3 great resources to get you started getting this part done. GEICO – AIG – or at Hometown Quotes where you can shop and compare multiple Car Insurance quotes for free.
Consider carrying as high as a deductible as you can. In fact, save up your deductible amount and put it into a savings account and do not touch it! Remember it’s there for paying your insurance deductible. So, put it in savings then forget about it and it will be there if you need it.
Do some research or check with your agent about the cost of insuring a car that your are considering buying before you run out and buy it. Don’t get unpleasantly surprised by a big premium increase AFTER you have you have signed all the paperwork on your new car.
If you own a home or have other insurance needs, check into package discounts with your car insurance provider. If they also can cover your other needs, packaging them together may get you an additional discount.
Everyone has different financial situations and different risk levels for their financial situation. The key to getting the right car insurance is getting coverages that will secure you and your car in case of a mishap. Doing this will ease your mind as you drive and keep you financially together in the event of an accident.
See Also No Fault Auto Insurance & Car Insurance Definitions
