Auto insurance, reduce costs but maintain protection
Auto insurance is a legal requirement in every US state andCanadian province. Costs are continuing to rise. How can youreduce some of these expenses and still get the best coverage?First, get multiple quotes from the Internet and yourneighborhood broker. You can shop for different types of quotesfrom a direct-sell insurance companies and offline and onlinebrokers.Auto insurance that is cheapest isn't always the smartest move.Ask yourself, is the company financially secure? Are theyreputable and will they pay out if you have to make a claim.The first piece of the policy is almost always liabilityinsurance. If you only have minimum liability coverage and youinjure someone, their attorney can go after your personalassets. Many insurers feel that minimum liability is a gamble.In fact, that is why it is often only a little more money formore protection. Auto insurance varies on car types. Coverage for a sports car isvery different from insuring the family sedan or mini-van.If you are looking to buy a car, consider buying a car that"looks good" to insurance companies. For instance, insurancecompanies know what kinds of cars are prone to problems. Theyalso know what kinds of cars are most often stolen. If youhaven't purchased your car yet, find out what cars make this"good list" among auto insurers. Consider how much coverage you really need to buy and the priceeach of these coverages will pay. Think about collision andcomprehensive coverage, which is how much you will be reimbursedfor the loss or destruction of your vehicle. Are you carrying$30,000 worth of collision coverage for a $12,000 vehicle? If your car was totaled, would you be able to afford to replaceit? If not, you will want comprehensive and collision coverage. The decision to buy this coverage is usually based on the valueof your car. Guidelines usually suggest that if your car isworth less than $2,000, it won't be worth it to buycomprehensive and collision. If you own a $50,000 car though, it would most certainly beworth it to pay an extra $200 annually or so to insure that yourcar will be replaced if you get in a serious accident.If you're driving a used car from 10 years ago, droppingcollision and/or comprehensive coverage can usually give bigsavings.Run through various scenarios such as if I totaled someoneelse's car, will my insurance cover it? How much will I have topay out of my own pocket? Paying a higher deductible can also keep your policy costs down.Remember, the deductible is what you pay out of own pocket whenmaking a claim.Buying a low mileage car and insuring with a good drivingrecord, will all help bring insurance rates down. Don't speed,don't drink and drive and you'll save.Single, young males under the age of 25 get the short end of thestick in this deal so if you fall into this category make up forthis price increase by purchasing a more sensible vehicle.Consider delaying the purchase of that cherry red Mustang untilafter you're 26 and married. Keep yourself adequately covered. You can get away with havingthe bare minimums required by each state to keep you incompliance with state laws, but that may not be enough toprotect your assets if you have a major incident. Insurance experts recommend that you review your insurancepolicy often and thoroughly.Many insurance companies offer discounts for anti-theft devicesand advanced driver-training courses.
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