Auto insurance basics read this and quickly learn how you can save 40% to 50% on the cost of your premiums before you buy any auto insurance policy.
The first question to ask yourself is do I need auto insurance and the answer to that is, if you drive a car you need auto insurance to be either provided by you or by your employer.
Most of the states will require some form of auto insurance, which meets standard minimum requirements and if you have financed a car the finance company will insist that you carry insurance.
Different types of auto insurance Some states will allow wealthy people to self-insure and this is okay if you have plenty of money and you don't mind someone losing a large chunk of it should you cause an accident.
Liability.
This is the insurance to protect you if you cause an accident and will pay medical bills and property damage for other people who may have been victimized by you.
You can have this type of insurance if the car you own is paid for and you will save 20% by dropping the comprehensive insurance policy.
Comprehensive.
This coverage pays for the cost of repairs or in the case the vehicle is destroyed or stolen.
The cost of the replacement vehicle is determined by Blue Book cash value of the vehicle.
This type of policy cost 20% more than liability insurance but is required by the finance companies to protect their investment if you are making payments on your car.
Collision.
This protection is from the cost of repairing damages to your car least any deductible.
Medical.
Pay any medical cost to you or other parties due to accidental injuries associated with an accident that you may have caused.
Each state determines the minimum amount of medical insurance, which is required.
No-fault insurance.
This means you are covered in the event of an accident caused by someone else who is an uninsured motorist.
Deductibles.
The amount of the deductible that you select is a huge determining factor in the cost of your insurance.
If you raise your deductible to $1000 or more per accident you will lower the cost of your insurance by 40%.
Many people are beginning to raise deductibles but this is only a good idea if you have enough money on hand to meet any out-of-pocket expenses should an accident occur.
Auto insurance basics are more complicated than one might think but the more information you have and the more time you take to research the available discounts and apply them to your policy the more money you will save.
The first question to ask yourself is do I need auto insurance and the answer to that is, if you drive a car you need auto insurance to be either provided by you or by your employer.
Most of the states will require some form of auto insurance, which meets standard minimum requirements and if you have financed a car the finance company will insist that you carry insurance.
Different types of auto insurance Some states will allow wealthy people to self-insure and this is okay if you have plenty of money and you don't mind someone losing a large chunk of it should you cause an accident.
Liability.
This is the insurance to protect you if you cause an accident and will pay medical bills and property damage for other people who may have been victimized by you.
You can have this type of insurance if the car you own is paid for and you will save 20% by dropping the comprehensive insurance policy.
Comprehensive.
This coverage pays for the cost of repairs or in the case the vehicle is destroyed or stolen.
The cost of the replacement vehicle is determined by Blue Book cash value of the vehicle.
This type of policy cost 20% more than liability insurance but is required by the finance companies to protect their investment if you are making payments on your car.
Collision.
This protection is from the cost of repairing damages to your car least any deductible.
Medical.
Pay any medical cost to you or other parties due to accidental injuries associated with an accident that you may have caused.
Each state determines the minimum amount of medical insurance, which is required.
No-fault insurance.
This means you are covered in the event of an accident caused by someone else who is an uninsured motorist.
Deductibles.
The amount of the deductible that you select is a huge determining factor in the cost of your insurance.
If you raise your deductible to $1000 or more per accident you will lower the cost of your insurance by 40%.
Many people are beginning to raise deductibles but this is only a good idea if you have enough money on hand to meet any out-of-pocket expenses should an accident occur.
Auto insurance basics are more complicated than one might think but the more information you have and the more time you take to research the available discounts and apply them to your policy the more money you will save.
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