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Did you get taught at school about liability, collision and comprehensive car insurance? What about deductibles and all the tricks on how to save money on car insurance? Chances are you didn’t, but if you’re one of the majority of people that drives a car, you’ve either learnt fast, took whatever insurance your family or friends recommended or you’re going to learn the hard way one day. Take the guess work out of choosing a car insurance policy and read up so you can make an informed choice.
Many motorists pay extra on their premium for a low deductible, and yet they take the minimum liability coverage. You could probably afford that $500 deductible if something happened, but could you afford being sued for $400,000 in damages? Spend your car insurance budget wisely to protect yourself and your assets. Consider raising your deductible and using those savings to raise your liability cover. If you’re worth more (you have a good job or you’re studying for one) or you have a lot of assets obviously you’ve got more to protect than someone who doesn’t. If you do have significant assets an umbrella policy may be worth considering to ensure all your assets are protected.
Check your health insurance policy, if medical bills after an accident are covered you can cut personal injury protection off your car insurance policy.
Keep your credit rating up, many companies use it to determine how much to charge you and even whether to insure you at all.
If you don’t have an extra car make sure your insurance company will pay for a rental car if you have an accident. The cost of renting a car for a week while your vehicle is being repaired could be significant.
Shop around for quotes, a great place to start is a comparison service. Compare quotes from a few different companies and read the policies to see how they stack up. If you do change policies make sure you notify your old insurance company immediately and make sure there is no gap in your cover before your new one kicks in.
Car insurance can be expensive, fortunately there are a lot of discounts that you can be eligible for. Maintaining a good driving record is the best way to get your premiums down. Other discounts offered include; low-mileage, safety features, multi-policy, senior, taking a safe driving course and paying annually. Take advantage of all the discounts you can for the cheapest rates.
Teenagers can add significantly to your car insurance rates. Consider having your teenager drive the family’s cheapest car and exclude them from other policies. Don’t forget if your teen moves out to take them off the policy. Just make sure you don’t loan them the car when they come to visit! If you still want your child on the policy, find out if your insurer will give you a discount when they’re away at school.
If your car has seen better days, and it’s not worth much, consider dropping collision coverage. The cost of your collision coverage might not be worth it when your insurer will only pay out your vehicles worth.
Make sure you understand what will happen if you have an accident and what choices you have. Will your insurer pay for original or only generic parts to repair your vehicle after an accident? Can you choose your own mechanic or body shop if you have an accident? Read through your policy and make sure you’re happy with it.
Make calling your insurer your number one priority after an accident. Most insurance companies have a time limit, often around 48 hours for making a claim.
If you are unfortunate enough to need to make a claim, get a copy of the accident report, save all your receipts and make sure you keep all the details of who you speak to. Make sure you include everything in your loss estimate. You may be entitled to claim sales tax and registration fees if your car has been totaled.
Put a bit of effort into getting your claim processed to speed up the process. Get some estimates and follow up your insurance company regularly to check on progress.
Work with your adjuster to get the best outcome. If you disagree with the amount offered, ask the adjuster for the reasons in writing. If you can’t get a satisfactory answer keep your cool and investigate your other options. Speak to the manager of the claims department and ask for your case to be reviewed, consider filing a complaint with the state insurance department.
