Many times when people look at an auto insurance policy, they see a lot of complicated terms that they might not know, and the wording can be very complex. You may find yourself feeling hopelessly confused and unsure of what anything means. The goal of this article is to help you understand a few of the common insurance terms that agents use. Knowing the definitions of those terms can make a big difference in your ability to make decisions regarding auto insurance.
Do thorough research prior to purchasing insurance. Different companies use different formulas to determine your premium. By checking out multiple competitors, you can find the best deal and save yourself a lot of money.
When shopping for vehicle insurance coverage for your teen, ask your agent to give you a quote, both as a separate policy and also as an addition to your existing policy. You will want to find out if it is cheaper to insure your vehicles on different policies.
Keep a clean license. Having tickets or accidents on your driving record can raise your rates on your insurance policy. If you do have an accident or get a ticket, consider attending traffic school. This can often offset the increase in your insurance costs.
There are optional protections past legal protections that can further protect you. Procuring additional coverage will be more expensive, though doing this may be worthwhile. 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.
In many states, auto insurance doesn’t insure only the vehicle, but the person driving that vehicle, as well. Often times, what can happen is this; a person will allow someone else to drive their car. If an accident occurs, the insurance company won’t pay the claim. You can opt for coverage that will allow other people to drive your car, though you will have to pay a little more for that.
Before purchasing a new vehicle, always research insurance rates. An insurance agent can let you know which models have the lowest rates. This will help you decide between a used car and a brand new car. Car insurance rates are significantly lower when covering a vehicle with a strong safety rating.
Raise your deductible to save money on your premium. This can blow up in your face if you need to make a large claim, but so long as you save money to cover anything insurance won’t, you might come out ahead in the end. You can save more on your premium if you pay a higher deductible.
Having appropriate insurance saves a lot of money for someone involved in a serious accident. Deductibles are how much an individual would be responsible for paying in the event of an accident.
It is not always the best idea to purchase a car for your teen. Instead, have your teen share a car with other family members. You can save a great deal of money by simply adding them on to your existing insurance policy. Some insurance even offer discounts for students that get good grades.
Carpool or take public transportation. Insurance companies pay attention when policyholders act in a responsible manner, and driving less reduces their risk, so they will lower your premiums. By telling your agent about the times you’ve been carpooling, he can then consider incorporating a discount to lower your premium.
The goal of this article was to help you navigate the world of auto insurance. Educating yourself about your choices is the best way to conquer your confusion when it comes to auto insurance.