What is a Car Insurance
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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 minimum coverage required by the states varies, and so do some wording in the no-fault insurance states but the concepts are the same everywhere.
The most important part of your car insurance policy is the first section, which covers your automobile itself. This part includes two subsection; collision and comprehensive coverage. Collision is meant to cover those situations where a tree “jumps right in front of you” while driving and those unfortunate incidents when another driver thoughtlessly places their car in the path of yours. Comprehensive covers a lot of things: hail damage, theft and so on.
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 are there to cover any party involved in an accident, no matter who is at fault. Your car insurance policy also covers you in case you are hit by a car while walking. If you don’t have health insurance, this part of your car insurance helps to cover medical expenses. It may also cover medical expenses which your health insurance does not.
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 save a lot of money on car insurance by keeping these rules in mind:
1.Always get several quotes when it’s time to renew your policy. There are several Internet sites that you simply fill out the form once and they would check hundreds of companies. Be sure you always compare like coverage. Check to make sure that all quotes contain exactly the same thing you have.
2.Check for discounts with your homeowners insurance company. Sometimes they offer a discount if you carry both products with them.
3. Ask if any discounts are available. There are often discounts available for drivers who have higher premiums (such as young drivers) who maintain good grades (if students) or for those who take additional driving courses.
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.
Keep Your Money To Yourself!