Car insurance is very important, because nobody’s immune to car accidents, natural disasters or theft. It can help you save a lot of money on these events. Here are some tips to choose the most appropriate for you.
First of all, you need to know that there are many coverage options:
Sometimes it’s not necessary to be in a car accident to need repairs. There’s always the possibility of an animal or any kind of natural disaster damaging your vehicle. You can also keep the annual cost lower by setting your deductible to, for example, $1000. This means that you’ll be responsible to pay the first $1000 of any damages in the event that they happen, while your insurance will pay for the rest, up to the policy limits.
In case an accident takes place, this will cover bodily injuries and property damages. Many companies have a three-part structure, which includes: the amount that they’ll pay for each person’s injuries, the total amount they’ll pay for all injuries and the amount they’ll pay for property damage. These sums of money are per accident and come in thousand-dollar increments. They’re typically shown as 50/100/50 or 150/300/100.
Medical payments coverage
This is additional coverage that covers extra medical payments that aren't included in the liability coverage. You can choose the maximum amount of money they’ll pay, which affects the cost of your monthly fee. Additionally, this will cover the medical bills if you’re injured by a vehicle as a bicyclist or a pedestrian.
Uninsured/Underinsured motorist coverage
If you’re unlucky enough to be in a car accident and the other driver’s uninsured or underinsured, this coverage will still protect you. It includes bodily injuries and property damage, even in a hit-and-run situation.
It’s an optional coverage that helps you pay for any repairs or replacements that your vehicle may need in an at-fault accident. This could be required in case you’re leasing or financing a car.
Here you can read more about how to cut car-related costs!
Easy steps to buy a car insurance
In a few steps -and sometimes even online!- you can choose the most suited option for you.
Firstly, take your time to search for different policies and shop quotes. You can ask an auto insurance agent in any insurance company, who’ll give you all the information that you need to know about their offers.
Another source of personal answers is an independent broker. With their knowledge on the market, they can assist you in the search for the perfect insurance for you. They can bring forward the offers of many companies and help you choose the most suitable one.
You can even get an estimated quote through an online or phone questionnaire from a car insurance company. They’ll give you the final quote once you’ve submitted other documents, such as your credit information or driving record.
Now that you have several car insurance quotes, you should compare them. You can use online and free tools, like Compare’s auto insurance tool. Even if you find a small monthly difference, it can add up to a significant annual saving.
Don’t be afraid to ask for possible discounts! In addition to this, you can bundle your car insurance with your rental or homeowner’s policy and save even more money.
Last but not least, you should go over insurance quotes every six months, in case the market’s situation changes or you’ve increased your credit-based insurance score. In this case, you can lower your auto insurance rate.
Are you buying a new car? Don´t miss this article!
A quick guide to choose car insurance for young drivers
Young adults' car insurance usually comes at a high premium, but it's compulsory to have one. There are many insurance companies that offer special plans if you’re young and behind the wheel.
When searching for a car insurance company, you should consider that there are a lot of factors that they take into account in order to build the policy and the related cost. For example, they’ll ask about your driving history, where you live and what your credit history is. As a young driver, you're considered less experienced, and you'll have to show that you're responsible for driving sober, respecting the speed limits, and following all traffic rules by the book. It's the only way to build a good record and get lower prices on your car insurance during the years.
This company has large experience in auto insurance, and they have special plans for young drivers, too. You can get interesting benefits by choosing the Good Student Discount, which can be extended even after graduation -until you're 25 years old. If you’re a safe driver, you can get extra discounts by enrolling in the Drive Safe & Save™ Program.
This insurance company offers tailor-made discounts for young adults. Among these are the Good Student Discount, which is available to student drivers under the age of 25 who also maintain a B average or higher overall; the New Graduate Discount; and the Newly Married Discount. Additionally, if you’ve just bought your first new car, you may want to consider adding the company’s New Car Replacement rider. If your car is totaled, you’ll get enough money back to replace it with a similar car.
You can cut car insurance costs by choosing this company because of their leading pay-per-mile insurance. The monthly premiums are made by a base fee plus a set rate per mile driven. It considers your personal factors, such as your age, location, and driving records. You'll pay for what you need. If you are a good driver, you'll be able to go for the Year Safe Driving Discount.
An interesting side of this company is that you can manage most of the paperwork online or through its mobile app. You’re able to make a claim, view and upload documents, and even get in touch with a company’s agent. Some of the discounts for drivers that it offers are the Fast 5 Discount, which you can get by starting a quote online; the Good Driver Discount that’ll be automatically applied to no-incidents drivers; and the Defensive Driver Discount, which you can get through an online certified driver course.
This company provides one of the best policies when it comes to young people leaving their parent’s insurance policy: the Family Pricing Program. This way, you’ll pay the same amounts as in your family’s policy, except in a solo one. In addition to these very fast online quotes, you may qualify for some of the discounts given to members of certain affiliations, such as sororities or fraternities, student organizations, and more. There’s also the possibility to pay less if your vehicle includes certain safety features.