Buying auto insurance is usually called as grudge purchase because, people do not profit from taking out insurance in general, but they are forced to buy it anyway in order to prevent the possible losses that would arise out of unforeseen events. Insurance is considered by most as a bothersome and expensive aspect of life, but if you shop around, you can save money and still be fully insured for unexpected events like collisions and car crash etc.
Here are 10 useful tips for first time Auto Insurance Buyers:
1. Right amount of Insurance
Many of us prefer buying the least amount of car insurance, which is required by the law in the sate we drive, however it may not be enough to cover the losses if you are involved in an accident with major damages to others.
2. Coverage
The insurance rate depends on many factors and can be controlled by the amount of coverage you decide to place on your vehicle. Depending on the state law you are required to buy a minimum amount of some or all of the following types of liability coverage:
a) Bodily injury liability: Protects your assets if you are held liable for an auto accident in which other people are injured or killed.
b) Property damage liability: Covers repairing or replacing the cars or other property of other people.
c) Uninsured/underinsured motorist coverage: Unless, if you live in a "no-fault" state (where your own insurance will cover your losses), this coverage insures you against damages caused by other drivers with little (underinsured) or no (uninsured) auto insurance.
d) Collision coverage: If any damages are caused to your vehicle by a collision with any object or from any vehicle rolling over your vehicle
e) Comprehensive Coverage: If anydamages to your vehicle from anything other than a collision such as natural calamities like windstorm, fire, theft, hail, flood or vandalism
3. Right Insurance Company
Having decided on right type of coverage needed, you have to choose an insurance company. For this you need to analyze the market before making your own choice. Compare prices and terms of different companies. To find out the right insurance company you may use various online services which give possibility to compare insurance rates of the nation’s top insurance companies. You also need to check with your state’s department of insurance to find out if a particular company’s compliant list. This would help you to assess the status of the company in their line of business.
4. Discounts
Availing discounts would benefit the policy holder on cost saving, extended coverage limit and other benefits. For example:
· Discount for Anti-Theft Devices
· Discount when the auto insurance is linked with homeowner policy
· Discount from employer, alumni group plan
· Hybrid Car Insurance discount
· Discounts for Women Drivers etc
5. Buy a Car which is inexpensive to Insure
It is wise to buy the care make, which is inexpensive to insure.
6. Deductible
You should choose a higher deductible on your auto insurance so that you can save money through lower premiums.
7. Cell Phone usage Increases the Auto Insurance rates
Policyholder should avoid cell phone usage as it would increase the auto insurance rate.
8. Recognizing and avoiding the automobile accident
By defensive driving techniques, you should be able to recognize and avoid an accident. This would help you to get a better rate on the auto insurance.
9. SR-22 Insurance
Few high risk drivers, specialty insurers offer a cheap SR-22 insurance certificate as proof of coverage to restore a revoked license.
10. How to make a claim?
It would be always great, if the policy holder is aware of the claims process, when taking auto insurance.