•  

How to buy car insurance 101

Date: Nov 26 2010
Filed In: Auto Insurance101

Follow these 10 tips before you sign on the dotted line

Step one, check your credit reports for any errors because auto insurance companies use your credit to determine your rate. Request a copy of your credit report by locking on to annualcreditreport.com or call 1-877-322-8228, you’re entitled to have one free copy per year.

Step two, find out the minimum car insurance that is required by law under your State Department of Insurance website. Only New Hampshire and Wisconsin don’t require car insurance but says they do require people to pay for their accidents, most people carry insurance anyway.

Step three, consider buying more liability insurance than the state requirements. Some consumer groups recommend a minimum of $100,000 of injuries per person, $300,000 per accident, and $100,000 in property damage reliability. Most American car insurance does not cover you if you drive outside of the US, some policy are valid in Canada and Mexico but check if your coverage meet those requirements.

Step four, collision coverage pays for the repair or replacement of your vehicle. If your car is more than five years old or less than $4000, it may not be worth getting collision coverage.

Step five, comprehensive coverage covers if someone steal your vehicle or your vehicle was damaged by a storm, fire, hail or vandalism but if your car is more than 12 years old, unless it is of valuable vintage car. The cost may outweigh the benefits.

Step six, considered other add-ons such as medical, emergency roadside assistance and glass breakage.

Consider buying uninsured/under-insured motorist protection, even if your state does not require this. This provision protects you from someone with no insurance causes a collision with you.

Step seven, shop around. Get a general quote from an auto insurance company website by inserting basic information such as your zip code. Some auto insurance companies websites offer different quotes from different companies, so you can compare different auto insurance rates in one website.

Just be aware that these colds online are only the bare bone policies with no add-on.

Step eight, once you choose the auto insurance company. Ask if you’re eligible for any discounts. Having airbags, anti-lock brakes, anti-theft devices in your vehicle can reduce your auto insurance rates. So does a clean driving record, carpooling, a car with low mileage, credit score, and good grades if you’re a student.

Drivers between the ages of 50 to 65 may also qualify for discounts.

Step nine, use the highest deductible you can afford in order to pay the lowest premium possible.

Step ten, once you have decided on a policy. Paid the entire premium upfront to save on the monthly service fees.

Did you know an estimated 14% of drivers in the US are on insured?

Related Articles:


Share |

Write a Comment