Have you decided on the amount of coverage that you want to have included in your vehicle insurance? Auto insurance coverage ranges from bare bones and State mandated coverage to such comprehensive coverage that you basically pay nothing but the premiums each year. And obviously there is a huge gap between the costs of the two types of insurance as well. The basic State requirements for insurance are very cheap. However, if you have an accident and there are substantial damages to your car and someone else’s, it is very likely that you will need to come out of pocket to cover the differential.
One of the first steps to do when looking for auto insurance is to shop around. Not all vehicle insurance is created equal. Therefore you need to find a variety of companies and compare them to see which offers you the highest quality coverage at the best rates. Not too long ago, that would mean that you had to call insurance company after insurance company to get quotes and then make your decision. This doesn’t have to take hours to do anymore. You can simply search for an insurance comparison website online and can compare several companies at one time. So in a matter of minutes, rather than hours, you will be able to compare your car insurance quotes.
One of the best auto insurance tips is to closely look at the deductibles insurance companies are offering you. Since it is an important part of the auto insurance rates that you get, it’s important to decide how high a deductible you can afford. The higher the deductible, the lower your car insurance quotes. So if you can afford to raise the deductible to $1000 or more, you will see a drop in your premiums of about 10& or more.
Two areas of auto insurance coverage that make up a large percentage of your insurance premiums are comprehensive and collision. Both of these types of coverage are required if you still have some form of financing on your vehicle. Quite simply, your lenders will require it. Comprehensive covers anything that damages your vehicle besides another car. Collision covers damages to your vehicle from another car. Some insurance companies require you to take both products and have the same deductibles on them. Others do not.
The question becomes if you need to keep this type of coverage as the car ages? For people that like security and safety, it might be worth the payments. However, if you are paying one or two hundred dollars per month more on a car that is only worth a few thousand dollars, is that type of expenditure worthwhile? It might be better to eliminate it and bank that money and if something happens use those funds then or put that money towards a new vehicle in the future.
And finally, beware of insurance company add-ons to your policy. Check the details of the policy proposed and make sure that you do not have any unneeded extras. For example, you might find that your insurance company has added items such as towing to your policy. If you have a credit card or AAA, do you need this towing feature as well? Every item like that can cut your costs over time.
Whenever you need insurance or your auto insurance renews, it pays to shop around and see what coverage you can get at affordable rates. By following these auto insurance tips alone, you can find substantial savings starting today on your insurance quotes.
