Every vehicle on this nation’s roads must meet minimum financial responsibility requirements. In order to meet financial responsibility requirements privately owned vehicles that are not self insured must have liability insurance. Many drivers will find that auto insurance can be expensive and will want to find ways to reduce their insurance cost.
Shopping for Automobile Insurance
Shopping around and comparing quotes is key for those who are trying to get affordable auto insurance quotes. There are thousands of businesses that are competing to sell you an insurance policy. Therefore, the best way to get the most affordable insurance quotes is to shop online. Shopping online gives you the opportunity to get a multitude of competing quotes from top flight auto insurers. Shopping for insurance online can be quick and efficient. All you have to do is to enter a website and complete a short questionnaire. Once you have submitted the questionnaire you can have dozens of cost free quotes within minutes.
Questions that you should ask
When shopping for auto insurance getting an inexpensive quote will undoubtedly be a high priority. However, it is not a good idea to accept a cheap quote if it is at the expense of getting high quality insurance coverage. Remember the purpose for buying insurance is for you to have financial protection in the event that you have an auto accident. When reviewing an insurance policy, you should get answers to the following questions:
Does the policy meet your states minimum required liability requirements?
How much liability coverage do you have for the injury or death of one person?
How much total injury and death liability coverage do you have?
How much property damage coverage do you have?
What is the deductible?
Do you have enough collision coverage to replace your car in the event of an accident?
Do you have enough comprehensive coverage to replace your car if it is stolen, vandalized or destroyed by an act of God?
Will you and your family be covered if someone is hurt in an accident?
Does the policy give uninsured/under-insured motorist coverage?
You will need answers to these questions in order to properly evaluate your insurance policy.
Reducing Insurance Cost
Coverage’s
Liability Insurance
Liability insurance is required by law in all 50 states. Liability insurance must be a part of any online auto insurance quote. Liability insurance covers the damage to another individual or their property when the driver is deemed to be at fault. Typical minimum liability coverage might be as follows:
$20,000 per person, for bodily injury you cause,
$40,000 per accident, for bodily injury, you cause.
$15,000 per accident, for damage to another’s property.
While it is cheaper to get just the required minimum liability coverage, that may not be a good idea. If you are in an accident for which you are at fault, you are responsible for any expenses that exceed minimum liability limits. The cost of expenses such as medical cost or lost wages can easily exceed the minimum liability limits. Experts recommend that drivers get at least $500,000 in liability coverage.
Collision Insurance
Collision auto insurance is a type of physical damage coverage that is optional. When you purchase this type of policy it covers damage to your car when your vehicle hits, or is hit by, another vehicle or object. This type of coverage will pay for damage to your auto regardless of who causes the accident. If you decline this coverage, or limit the amount of this coverage, you can reduce your insurance cost.
Comprehensive Insurance
Comprehensive auto insurance is another type of coverage that is not required by law. Comprehensive insurance generally covers theft, fire, vandalism, storms and acts of God. If you decline this coverage, or limit the amount of this coverage, you can reduce your insurance cost.
Miscellaneous Coverage’s
Popular coverage’s such as roadside assistance, which offers free tow truck service or rental car reimbursement coverage, which reimburses you if you have an accident and your car must be in the shop, are nice. However, declining these services can reduce your insurance cost.
Discounts
One good way to reduce your auto insurance cost is to take advantage of insurance discounts. Some of the most common discounts are listed below.
Multiple car discounts:
This is a rate cut that is offered to consumers with more than 1 car.
Umbrella policy:
A good way to protect your assets is to buy an umbrella policy. An umbrella policy covers your home, and auto. These policies generally are sold at a discount, and allow you to purchase up to $1,000,000 worth of coverage.
Good driver:
If you have not gotten a ticket or been in an accident for three or more years, many companies will offer you a good driver’s discount.
Anti theft device:
If your car is equipped with a car alarm, a steering wheel lock or another type of anti-theft device, you can probably get a discount on your premium, if you carry comprehensive coverage.
Deductible
Most insurance policies require you to pay a portion of the cost in the event of an accident. Your portion of the cost is called the deductible. Most policies specify a $500 deductible. You can however, opt for a higher, or a lower deductible. Remember the higher the deductible, the lower the insurance cost, and the lower the deductible, the higher the insurance cost. By increasing your deductible, you can lower your insurance cost.
Purchasing Insurance
Once you determine the coverage’s that you want, and are able to fine tune your insurance policy, you will find that making a purchase is relatively easy. You simply need to submit an online insurance application and make a submission. Many people are insured within one hour after submitting their application.
Purchasing cheap auto insurance can be done online in a relatively fast and efficient manner, and if you do your homework you can save money.