1. What is car insurance?
Let’s put it simple: It’s a service acquired that promise you financial support in case an unfortunate event happens and causes you losses or other damage. When you pay an insurance company, there will be a policy that will detail your coverage (what is protected and to what dollar amount), if something happens the company will be responsible for paying a loss (a broken leg, damage to your car, etc.). Insurance companies will use the funds from other customers to pay claims for those who need it.
2. Types of car insurance.
Here are the basics you need to know:
Liability coverage is legally required in almost every state. Liability coverage will cover the other driver in a crash you cause, and it will include property damage and injury. If you see number like 30/60/25 or 25/50/10, it shows the liability coverage limits:
- Bodily injury per person.
- Bodily injury per accident.
- Property damage.
In example, 30/60/25 means your coverage will extend up to $30,000 per individual injured, $60,000 for all persons injured in an accident and $25,000 for property damage.
In some states, it’s a requirement to carry coverage (at least personal injury protection). In the other hand, collision coverage (damage caused in a crash, and other event such as theft, weather, etc.) are mostly under a full coverage plan.
Other coverage plans will include protection for you and your vehicle from people who don’t have insurance, medical payments coverage, etc.
3. Getting the car insurance.
Before you get any car insurance we would recommend going online, call a company or two, look at the reviews online or even walk into a local insurance company to make sure you select the best option for you. Keep in mind that not all insurance companies are the same, they have different pricing policies and many looks for certain types of customers with certain risks profiles to do business with.
It’s very important that you compare car insurance quotes from as many companies as possible. Getting multiple opinions and understanding the market will help you find the best rate around and an insurance plan according to your needs.
4. Pay rates.
To determine what you pay, insurance companies will rate you based on dozens of factors such as who you are, where you live, what you drive, etc. It’s all about statistics, as the Insurance company will use these factors to estimate the likelihood that you will file a claim.
Some of the risk indicators are the age (teens are considered high-risk drives due to lack of experience), your driving record, ZIP code and your credit score (which it’s prohibited in Massachusetts, California and Hawaii).
5. Keep your rates low.
- Keep your driving records clean (we could help you on this one).
- Consider sharing a policy with someone you live with.
- If possible, bundle your home insurance with it.
- To save some cash, you can sign-up for auto-pay or pay a full price for a year coverage.
- Maintain the coverage with no lapse between policies.
6. When to get insurance
The obvious time to get a car insurance is when you buy it. However, we highly recommend shopping around before you even purchase the car so that you can add it to your budget.
You may also want to switch insurance if you move, get married or add a new teen driver to your policy. In addition to, it’s very important to compare rates every six months or so to make sure you’re staying up to dare on any charges that might occur if you get a traffic ticket, move or even have a birthday.
source: www.credit.com