Four things to know about Car Insurance
Car ownership doesn’t only involve paying your monthly payment but also keeping car insurance on your vehicle for the entire time that you own it. Educate yourself about the different levels of car insurance to allow you to select the best possible car coverages that meet the minimum requirements and suit your individual needs. Keep these four facts about car insurance in the back of your mind when you start shopping for policies.
More Expensive does not Equal Better
Basic coverage, such as bodily injury and liability, are required by the law and make up the majority of your policy. Other options, such as comprehensive and collision, will make your policy premium higher but offer you protection from at-fault accidents or damages from fire, theft or vandalism. Services such as rental reimbursement and roadside assistance tend to only cost a few dollars and provide peace of mind if you end up stranded somewhere.
Know what Affects your rate
A multitude of factors contributes to how much money you’ll be paying for car insurance every month or six months. These include how long you’ve had your license, credit history, employment history, accidents or violations, having a gap in insurance coverage and age. Each company has its own formula using a combination of these and possibly other facts that determine your final policy rate. The type of car you drive, how much you drive it every year and things such as the engine size and color all play into your overall car insurance calculation.
Ask about Discounts
Discounts are available for certain customers. Some offer discounts for individuals that are members of partnering organization, for getting good grades as a student or for having a clean driving record for an extended period of time. You may also qualify for additional discounts for the safety and security features your vehicle has such as an active alarm, back up camera, anti-lock brakes, and VIN etching. You can also qualify for discounts with some companies if you take a defensive driving course, which can lower your premium by about five percent.
Car insurance doesn’t need to be complicated, but it is a requirement for driving so you need to understand how it works and how the rate for the services you’re paying for are calculated. Car insurance is something that is a nuisance at times, but it’s there when you really need it after an accident or when something else happens to your car such as damage from Mother Nature. It’s always possible to make changes to your policy if you feel that your current coverages aren’t adequate.