Be prepared when shopping for auto insurance rates and educate yourself about your auto insurance policy. You will want to make sure you have all the necessary information to help you become a well informed insurer. Below is what you need to know when determining which auto insurance company to use and what you should have in your policy.
Pay the Higher Deductible
Most people choose to pay the smaller deductible because they don’t believe they can afford the larger deductible. The insurer is paying a higher premium for the lower deductible. Instead pay a lower premium and save the money. Place the remainder of funds in an emergency savings account for the higher deductible. Over time you will save yourself more money than what the higher deductible is.
Increase the Liability Coverage
Most auto insurance rates include a $300,000 per person for liability coverage; however the medical care can often times far exceed this amount and you should increase your coverage to $500,000. In reality, you are only paying slightly more per month but you are extending yourself $200,000 more coverage per person.
Cut Personal Injury Protection
Personal injury protection will cover your own medical expenses due to an accident. However, if you have health insurance then you are basically paying twice for the same coverage.
Purchase an Umbrella Policy
An umbrella policy is great for people who have a substantial amount in assets. The policy would cover both your home and your car. These policies usually cover $1 million.
Get a Good Agent
You should thoroughly trust the agent that will be representing you for your auto insurance. If you are looking for an agent ask for his/her credentials. Some of the credentials that require additional education are CPCU, CIC, and AAI.
Pay Your Bills
Insurance companies nowadays are using your credit score to determine your level of risk. Keeping your bills paid and insurance score up will help you not only to save on interest rates but will save you on insurance as well.
Add Car Rental Insurance
Adding car rental insurance will slightly add to your auto insurance rates but is cost effective when considering how much a car rental costs for one week. If you have a car accident or your car is in the shop for other damages covered by your insurance, you can rent a car and put it on your insurance company’s tab.
Most states have guidelines regarding the pricing of auto insurance premiums. If you know what these rates are you can protect yourself from being taken advantage of by the insurance company.
Auto insurance companies have varied rates and the policies can vary from one company to another depending on their ratings. Be prepared when comparing the free quotes. Make sure that all your quotes have the same coverage you are looking for. If your coverage is different from one quote to the next, then you are not getting a fair evaluation of what you are trying to purchase.
These are just a few tips to help you find out what you should know about auto insurance rates and coverage. Hopefully by educating yourself and shopping around you can find the best insurance policy that will meet both your needs and pocketbook.