Affordable Car Insurance - Factors to Consider by bethanycollins

VIEWS: 10 PAGES: 2

It is necessary to be careful while selecting the appropriate coverage & features for car insurance. Read about factors to be considered to make your car insurance affordable.

More Info
									                 Affordable Car Insurance - Factors to Consider

As soon as you start shopping for a car insurance company, you are flooded with
“lowest rates” and “cheapest insurance” offers. Before you take the plunge consider
some important factors that actually make car insurance affordable.

In order to have better control over rates, it is necessary to be careful in selecting
the appropriate coverages and features that make your car insurance meet all your
needs. It’s also important to look for an insurance company that gives you fair,
prompt and reliable customer service at good rates. Affordable car insurance needn’t
be a far fetched dream if you spend some time understanding your requirements
before buying your policy.

State Laws- A good starting point is to know the minimum insurance cover you
must have in accordance with your state laws. Car Insurance is mandatory in most
US states and each has different requirements for the basic minimum coverage you
need to carry in order to take your car on the road. Depending on your state law,
you must devise an insurance plan that meets the basic requirements as well as
covers other risks, which you may preempt, depending on the model of your car,
your driving record, distance traveled, number of people using your car, etc; also
take into account your other fellow drivers and what kind of coverages they usually
carry. Every place has a different trend and it’s always good to be in the know so
that you have an idea about the general claim figures doing the rounds. For
example, the minimum state regulated requirements for Texas auto insurance cover
$25,000 for bodily injury and property damage each, going up to $50,000 towards
an accident. However, be prepared when you buy just this coverage you have only
ensured that you are protected incase you are found at fault in an accident and the
other driver claims from your car insurance. This gives you a rough idea about the
liability amounts you should be purchasing. Always buy adequate coverage over and
above the minimum liability to protect yourself too when you buy car insurance.

Know the present value of your car- The other important factor is to know the
present value of your car. Your car insurance quotes would vary depending on the
model of your car. For example, a Mitsubishi Lancer is going to be costlier in terms of
repairs than the Honda Pilot. Similarly, there are cars which are charged higher
premiums when it comes to safety features, theft, injury, repairs and collision claims.
The simple equation here is; the safer (read lower risk) your car is, the more
affordable will be your car insurance.

Some coverages you shouldn’t ignore - Additionally coverages like
Uninsured/Underinsured Motorist, Comprehensive, Collision, and PIP should all be
considered depending upon the age of your car and your specific requirements.
Ideally it makes no sense to keep collision coverage once your car crosses 8 years.
Similarly comprehensive coverage should be dropped once it’s over 10 years old. The
logic is simple. Any claim you make from your insurance company at this stage will
not be a very significant amount once factors like depreciation and deductibles are
counted in. However if you feel you might not be able to bear out of pocket expenses
to replace/ repair your damaged car, stick with these coverages. PIP is mandatory in
some sates but is advisable to keep on your policy if even if it’s not in your state
regulation list. The same goes for Uninsured/Underinsured Motorist coverages. These
really come in handy if you get involved in a hit and run accident.

Check the reputation of the insurance company- Make sure you do a
background check of the financial reputation of the company that you wish to get
insured with; know their complaint index; read some testimonials about them. The
last thing you want to do is go with a company that promises affordable car
insurance, but finds every reason in the book to shortchange you on your claim.

Consider Additional benefits- Some companies offer plenty of other benefits in
place of discounts that actually make for affordable car insurance. Benefits like
lifetime car repair guarantee, 24/7 insurance claim hotline, waiver of the deductible
for a “Not at Fault” Accident, first accident forgiveness, etc all actually save you more
money in the long run.

Remember – It’s never a good idea to over or under insure your car because you
end up losing money in the long term in both cases

In a nutshell, buy a car insurance policy that not only meets all your requirements
but also offers an edge in terms of customer care. Tailor it to get affordable car
insurance that is the best value for money policy for your dollars.

								
To top