GuestBlogger There is a lot of complicated insurance jargon thrown out at you when you are purchasing auto insurance. It can seem to be so confusing at times. The goal of this article is to help you understand a few of the common insurance terms that agents use. Having a clear understanding of what the terms mean will help you make educated decisions while shopping for automobile insurance.
Make sure you understand the different types of automobile insurance coverage before you purchase it. There are a lot of factors that are involved in auto insurance coverage even for a single vehicle. For example, bodily injury coverage is important, as it covers any injury that is your fault in case of an accident.
You must have the state legal minimums; however, there are many optional protections that are available. You will have more coverage, but your premium may be more. If you get into an accident with someone who does not have insurance or you are the victim of a hit-and-run, you’ll be sorry if you don’t have uninsured motorists coverage.
After market additions may be fun and something great to have on your vehicle, but they are also expensive and sometimes really not essential, so always make a wise decision on whether or not you wish to purchase these types of things. It is nice to have a nice stereo and heated seats, but they are not really necessary. It is unlikely that your insurance company will cover the loss of these add-ons.
Pay for your car insurance quarterly or bi-annually rather than month-by-month. Your insurance agency adds monthly fees to your bill, usually around $5 every month. The money wasted here adds up fast. Adding another bill to your monthly pile can also turn into a nuisance. Less payments means more money.
Think about buying an economy sedan and getting rid of your sports car. Insuring a sports car is expensive. A car with a lower profile on the street will be a better decision. When it comes to insurance, larger motors cost more to insure. In addition, sports car are stolen more often than other cars, driving the insurance rates even higher.
Car insurance rates can actually change based on location. Rates change across locations due to factors like local accident rates and theft statistics. Urban areas also usually have higher rates than suburbs and rural locations.
Request from the insurance agent a detailed list of available discounts. Go through the list of discounts to be sure you get every one that applies so you save money.
Don’t buy your teenager a car of his own. Instead, they can use a car that you already own. This saves you money on insurance because you can just add them to your existing policy. Many insurers provide discounts for being honor roll students or earning good grades, so encourage your teen to do well in school.
By making a list of discounts, you can see exactly which discounts you can get, as well as which ones you may be able to get with only slight changes in your driving habits. The amount you can save with discounts can be shocking.
This article will give you a foothold to start understanding your policy and what actions you should take to improve it. The best method for battling confusion over auto insurance is to simply learn as much as you possibly can about options available to you.
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