Going from carrying only liability insurance on your car to taking out a full coverage policy can be quite an adjustment. While the coverage is enormously better, the price will reflect the increase in value as well. In most cases, individuals switch to full coverage insurance when they purchase a car and a lender has a lien on the vehicle. Lenders usually require borrowers to carry full coverage insurance on the automobile. Just because you have a new or new-used car, this does not mean you are ties to paying overpriced insurance rates. There are ways to get cheap full coverage insurance on your vehicle. First of all, you have to take a few moments to sit down and decide what car insurance features matter most to you. Some of the most common features of insurance are the coverage limit, the premium and the deductible. The coverage limit is the maximum amount the car insurance company will pay out in the event of a claim. You have control over the coverage limit; although the lender may require you to carry at least enough coverage for the total cost or value of the vehicle. The lower your coverage limit, the lower your monthly payment because, essentially, you are paying for less risk. The higher your coverage limit gets, the higher your monthly payments will rise. Cheap full coverage insurance can also be determined by the deductible. A deductible is the out of pocket expense you will incur in the event of an accident or claim. For example, if you coverage limit is $150,000 and you wreck your car, worth $40,000, and your deductible is $1000, then you will pay $1000 towards the claim and the insurance will pay the rest of the damages done to your vehicle. You can even find cheap full coverage insurance that covers personal injury done to you or other passengers in your car, even the driver of another car involved in an accident with you. This is a very wise feature for car insurance policies because, after all, cars are not the only thing damaged sometimes in a car wreck. People can get hurt and this requires medical attention and costs money. Cheap full coverage insurance should still offer this benefit. In fact, if you come across a policy that excludes this feature, you should walk away from it. The monthly amount you will pay each month can also be cut down a percentage or two by paying the premium six months at a time. While this means you pay more out of pocket expense at one time, the savings is there. Prepaying the premium is a convenient way to lower the cost of your cheap full coverage insurance. So long as you are financially responsible and will commit to setting aside an allocated amount each month to go towards your car insurance fund, you will be able to easily use the prepayment plan. You can find quick quotes online or ask your current car insurance agent what kind of rates or discounts they can give for you. One tip to remember is that when you are in the market to buy a new car, you should call your insurance agent ahead of time and ask him or her how the purchase of a new car will affect your rates. If you already know the make/model of the car you will be purchasing, your insurance agent should be able to give you a quote instantly.
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