Getting an insurance is the best decision you could ever make in your lifetime. Be it for your body, health, or properties, insurance is a financial life saver and a must have for every citizen in every country. No one hopes for something bad to happen, but they still do and if it is not planned for or anticipated, it could be frustrating as well as disappointing. Insurance stands as a risk management policy to hedge against the risk of a contingent or uncertain loss.
For instance, if you pay a certain sum of money (usually small) to insure your car, if the car is involved in an accident, the insurance company will carter for the total cost of the repair, thereby relieving you of some outrageous unplanned cost. This article handles some basic things you should know about auto insurance before you jump into buying it, because you need to protect yourself, others, and your wheel drive.
1. Find Out If Your Insurance Will Get You a Loaner Car
This may not come off so easy for most insurance companies to dish out, but you need to know the limit of the insurance. If you need to rent a car after an accident you would be spending less if your auto insurance makes room to cover that cost as well. Even if it’s just part of the rental payment, it will go a long way to save you some cash.
2. Be Truthful
Instead of playing smart on your insurer, it is best not to lie about where you parked the car and how the accident happened. It might pay off at the initial stage if you say the car was at the garage when another car came crashing in it, when actually you were on high-speed on the highway, but if you get caught at the long run, you would be paying more than you bargained for.
3. Some Employers Negotiate With Insurers To Give their Employees Discounts
Ask your boss if your company has any side deals for car insurance. Also call your college and any industry groups to which you belong to see if they offer group discounts to members.
4. Do The Math on Installment Payments
Plan not to go for cheap rate insurance, because most times they do not cover you and every cost of the car. Installment payments can help you get better insurance policies; with a monthly saving of $10, you could pay for an insurance worth of $120. If you can afford it, great! pay for your policy in one shot, or twice a year, but the down side of an auto insurance is that careful drivers do not often benefit from the policy.
5. Not Filing Claims Judiciously
Your insurance is there to protect you, but you could be in for higher rates if you file a claim every time a grocery cart rams your side panel. You could handle those very small incidents, but call your insurance company once the accident has caused more damage than you can normally handle.
Buying the minimum amount of coverage allowed by law or your insurer would save you money, but it won’t save you anything in the long run if you ever have a claim. For example, if you choose a high policy, you’ll have cheaper premiums. But that also means you’ll need more cash before you can make a claim
7. The Larger The Deductibles, The Lower The Premium
Let’s say you have $5,000 in repairs. A $1,000 deductible means you’ll have to pay out-of-pocket for 20% of the costs. If you have a $250 deductible, you’ll only be paying one-twentieth of the costs. You’ll have to weigh that with the difference in premiums for high-deductible policies.
8. Discounts For Auto Insurance
You can get a discount for almost everything on sale and that includes auto insurance. Many vehicles come with safety features and alarm systems that will lower your premiums, so delay going ahead with the purchase until you have confirmed from your insurance agent, and also read more about which cars are the most and least expensive to insure.
9. The Cheaper The Insurance The Lesser It Covers
This is just to re-emphasize this point because it is very important. In many states, where rates are set by law, up have to analyze your options critically before buying. Check the state-by-state requirements, also find time to visit your state’s insurance department for details and clarifications.
10. Combining Policies Can Save You Money
Some insurers will knock off up to 15% from both your auto and home policies if you bundle them together. Just make sure both policies provide the right amount of coverage and not just a discount for limited services.
11. Still Shop Around
A study by InsWeb.com found drivers saved more than $300 on policies when they switch. So you see, it pays if you still keep up with the search for the perfect policy, do not be in a hurry to sign those papers. While you can get healthy discounts for being a long-time customer and for having more than one policy with the same insurance company, it still pays to shop around once a year.
12. Vehicles Used For Work May Not Have The Coverage You Expect
If you use your car regularly, your chances of getting involved in an accident is way higher compared to someone who only drives out in the evenings. So for a personal policy gotten by a salesperson or a pizza delivery person who is always on the move, he needs to make sure the policy covers his work use of the vehicle.
13. Red Means Nothing
Myth says a red car means you’re a bad driver or that you’ll drive irresponsibly, and so you would have to pay higher for insurance. This is not true as the colour of your car has nothing to do with the price of your insurance. Although studies have shown that the number of red cars that are involved in accidents yearly are higher than that of any other colour.
14. Thieves Don’t Care About The Price Tag
You might think your wheels are the hottest, but those stolen most often are nabbed because their parts earn a lot for the thief. How often your car brand and model is stolen can have an impact on your premiums too.
15. Review Over Again
As your vehicle gets older, you may not have the same needs as you did when it was bright and shiny off the lot. Consider lowering your coverages if your vehicle already has a few dings that you’ve decided you’re willing to live with. If your car is worth $1,000, you may not need to pay much for it.
We Hope The Car In The Video Below Is Insured