What is a Car Insurance
Car insurance is something which we rarely think of, but all need. You may not spend a lot of time thinking about your policy unless you really need it. Most of us for this reason have little idea if we are really getting a good deal on our insurance. Learning a bit about car insurance can help you to avoid being taken in by smooth talking insurance salespeople and buying a policy with coverage you don’t really need.
The coverage which you are required to carry varies from state to state, as does the exact wording of the regulations in states with no-fault insurance; however, it is much the same in each state.
The first section of the policy is the part that covers your automobile. There are two sections to this part, comprehensive and collision. Collision covers when that tree jumps out in front of you, or another driver carelessly puts his car?s rear end in your way. Comprehensive covers theft, a falling branch, hail damage and all other things that damage your car.
The second section of the policy deals with your liability, the other guy?s damage if you caused the accident. The amount of coverage shows up in numbers. 25/50/10 for example means that the company won?t pay more than $25,000 per person and $50,000 total per accident. The 10 stands for $10,000 for property damage per accident.
Medical payments to others, covers anyone in the accident, regardless of fault. Your policy even covers you if hit while walking. If you have an accident and no health insurance, this part covers you. It also defrays expenses from an accident your health insurance doesn?t cover.
There are additional coverages in the policy such as uninsured/under insured motorists, which pays if someone hits you without any or enough coverage. This also covers a hit and run. Also towing may be added for a nominal sum if you have full coverage, both liability and comprehensive and collision.
You can reduce the cost of car insurance if you follow a few rules:
1. When it is time to renew your policy, get a variety of quotes and compare the prices. You can do a comparison of rates on many websites - however, look for quotes on insurance with the same coverage as you have now.
2.Check for discounts with your homeowners insurance company. Sometimes they offer a discount if you carry both products with them.
3.Ask about discounts. There are a number of discounts offered. For younger, higher risk and higher premium drivers you often can get a discount for driver?s education courses or good student discounts.
4.See if you really need to cover your own car. Unless you have a loan on the car, sometimes it?s cheaper to drop the comprehensive and collision portion of the policy. Calculate what the company pays you with the Kelly blue book rate, if you total the car, less the deductible. If this is less than two year?s premium, consider dropping the coverage and tucking the money away for a new car, just in case. Don?t be cheap where the liability portion is concerned. The increase cost is worth a little extra coverage.
5. Think about getting a beater and using it for commuting and short trips. You can carry full insurance on your good car and carry only liability insurance on the beater. You can save money on your insurance and wear and tear on your good car this way.
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