Car Insurance Info and How to Save Money

Car insurance is a type of coverage that anyone with a vehicle needs and should have. You need to understand the diverse kinds of auto insurance coverage available and that is the answer to getting the best deal on the proper protection.

Liability Coverage – This coverage helps protect you and your possessions if you cause harm to others or damage the property of others with your vehicle. You can be taken to court for the full cost of the damages. If the price tag of this loss exceeds the amount of your liability insurance coverage, you may have to pay the balance. So, be sure you have adequate liability coverage to protect your assets and possessions.

Collision and Comprehensive Coverage – This coverage will pay for damage to your vehicle. With collision coverage, your vehicle is covered no matter who caused the accident. Comprehensive coverage covers theft and vandalism, and catastrophes such as fire, flood and hail. Most of the time, if you have a loan on the vehicle, the bank or the loan company will require that you carry both collision and comprehensive coverage.

Medical Payments Coverage and Personal Injury Protection – This cover will medical expenses and protect you if you are injured as a pedestrian, offers no-fault coverage, and more. Personal Injury Protection (PIP) is a form of no-fault insurance required in states with no-fault laws. If you already have good medical and disability insurance, you may not need to purchase the medical payments coverage.

Uninsured/Underinsured Motorist Protection – This coverage pays the costs from being hit by an uninsured motorist, a hit-and-run driver, or someone who has inadequate insurance to cover the damages.

Here are some ways you can reduce your car insurance premiums:

1. Raise your deductible. You can save some money if you agree to pay out of your pocket rather than have the insurance company pay more in case of a loss.

2. Pay your premium all up front rather than in payments. If you pay your premium in full you won’t have to pay for interest or service charges that the insurance company charges for paying on installments.

3. If there is a defensive driving course or RV safety class in your area, become a student. If you are a senior driver, make it worthwhile by taking a senior driving course. Most insurance companies will give you credit for getting educated.

4. If you have more than one vehicle, insure them all on one policy. Usually you can get up to a 20% discount for having more than one vehicle on a policy.

5. Shop around. Prices vary from company to company so it pays to shop around.

6. Consider deleting collision coverage on older vehicles. If you get in an accident, the insurance company will depreciate the value of your vehicle and you probably won’t get much on the loss if it is an older vehicle.

7. Buy your auto insurance and your home insurance with the same company. Many companies will give you a break if you have two or more policies with their company.

8. Maintain a good credit record. Creating a solid credit history can cut your insurance costs. Insurance companies use credit reports to determine rates on auto policies. So pay your bills on time and save money on car insurance.

9. Check into low mileage discounts. Some insurers will offer lower rates on vehicles that are driven a low number of miles a year.

10. Check into other discounts. If you haven’t had any traffic violations or accidents in the last three years, most insurance companies will give you a rate decrease.

11. Do you have a good student in the household? Students with good grades get lower insurance rates.

12. Do you have a college student living away from home? Some insurers will not rate the student if he/she is not living at home most of the year.

The bottom line is that if you are in the market for car insurance, check around, get at least three quotes, insure your home and vehicles together, and make sure the insurance company has a good rating and save some money while you are at it. Be safe out there.

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