1. Take Your Time
Before
you choose a company, it is important that you explore all your
options. Well, maybe not all your options, but at least some. There are
too many companies offering different rates and policies to just pick
the first one you see. Once you’ve found a few companies that have what
you need at a price you can afford, narrow it down by looking at their
customer service abilities. You don’t want to be stuck with a company
that never answers your questions or takes way too long to get back to
you. Having a prompt insurance company is ideal when handling a claim,
since you might not be the only one waiting for their response.
2. Discounts Do Help
If
you’re looking to lower your monthly premium, you may be thinking about
talking with an agent about the types of discounts available to you.
It’s a good idea. Maybe you think that taking advantage of a safe driver
discount won’t save you that much, chances are it will. If you have a
specific discount in mind don’t rule out the rest. Once you have your
agent on the phone or in front of you, talk with them and find out if
there are any more discounts that you may qualify for.
3. Pay It All
If
you’ve got a healthy savings account and are willing to spend it on
your car insurance, it could save you some money. Typically, paying your
insurance month to month is more convenient, and convenience comes with
a price. Paying month to month also comes with a lot of fees that can
be avoided by paying lump sums every 6 or 12 months.
4. Personal Items Not Always Included
Theft
of personal items is not typically covered by car insurance companies.
That’s right, if someone breaks into your can and takes your laptop, or
fancy phone don’t go to your car insurance company for help. Now, if a
window is broken in the process, your window will be taken care of, but
you will have to file a claim with your renters or homeowner’s insurance
company to replace personal items taken. This is because homeowners and
renters insurance cover your personal property, whereas your auto
insurance is more for cars.
5. Know the Difference
When
you get car insurance, there are three words you should be familiar
with. Those words are liability, collision, and comprehensive. These are
the three most common forms of auto insurance, and it helps to know
what each one means. Liability is important to have and is required in
most states as the bare minimum. Liability insurance is what helps to
pay for damage done to others. Collision and comprehensive both cover
damages done to your vehicle. The difference is comprehensive covers
damages that were not related to a crash, such as theft or fire.
6. Policy Lapses
In
most states, some sort of auto insurance is required by law. That
doesn’t mean that it is always affordable. Whether you choose to let
your policy lapse or are forced into it, be prepared for the
repercussions. Letting a policy lapse basically means that your coverage
was canceled. This is viewed as risky or irresponsible behavior and can
increase your premiums the next time you buy insurance. Not only will
it increase the cost of your next policy, but it could also make it much
more difficult for you to find an insurance company willing to cover
you. Allowing your policy to lapse may also negatively affect your
credit score, which also leads to increased premiums.
7. Coverage
The
amount of coverage needed for each vehicle varies greatly, and your
financial situation can also factor into the equation. If you have a
nice pile of money sitting in the bank just in case you are in an
accident, you may not need too much insurance. It is always good to be
prepared, but you don’t want to pay for more than you need. Know your
policy well, and look to your agent for advice.
Guest post from Sam Landon. Sam writes for CarInsurance.org.
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