When planning on getting yourself a new car, insurance cover is one of the factors you must have in mind. This is not only a legal requirement, but also a good way of securing your vehicle and yourself, as well as being on the safe side in case anything happens. What many people find challenging when it comes to insuring their cars is to understand what to go for and where you need it.
Bodily injury liability: If someone is injured as a result of an auto accident you caused, this coverage could help pay for your legal fees, as well as the person’s medical bills and lost wages. This coverage often includes two separate limits: one that applies to each injured person ($50,000, for instance) and a second one that applies to each accident (for instance, $100,000).
Property damage liability: If you damage another person’s property, such as a fence or garage door, with your vehicle, this coverage can help protect you. Property damage coverage may help reimburse the other party for their losses, so you don’t have to pay for them out of your own pocket.
Personal Injury Protection (PIP): If you’re injured in a car accident, this coverage may help pay your health insurance deductible (if you have one) as well as medical costs that exceed your health insurance limits. This coverage may also help pay for your lost wages and “loss of services,” such as picking up your kids from school, while you recover. Worst-case scenario: PIP may help cover your funeral expenses. Keep in mind that PIP is not available in all states.
Medical payments: Like PIP, this coverage may help pay for your medical bills related to a car accident. However, this coverage also extends to your passengers and a family member who was driving the car when the accident occurred. Also, if you or a family member are injured in another car or as a pedestrian, this coverage can help pay for medical expenses.
If you have car insurance you know how difficult it was that first time you pursued the whole process. This can be easy if you have a good idea on what to do when you are buying car insurance for the first time. It all starts with deciding just how much insurance you need, doing an inclusive shopping as well as understanding what you are into.
Decide how much insurance you need
How much insurance you need depends on a lot of factors including how much you owe and own, how much your assets are worth, whether you have dependents, and how much out-of-pocket cost you could afford to bear. You can estimate your coverage needs using our auto insurance coverage calculator or worksheets available on-line.
No matter what type of insurance you’re buying, the process is essentially the same. Once you’ve decided what type of insurance and how much coverage you need, you can begin to compare car insurance quotes online, directly by phone, or through an insurance agent or broker.
Understand what you’re buying
An insurance policy is a legal contract that may be loaded with technical terms that are hard to understand. But read it anyway before you sign on the dotted line to find out about the coverage you’re buying.
Insurance cover is generally costly, and as much as you have to keep one, you have no choice but part with insurmountable amounts of money. However, if you work on minimizing the costs of insurance cover, you can well keep one while you save yourself some cash on the other end.
Move to a Lower-Crime Area
Individuals who live and park their car in wealthy neighborhoods are statistically less likely to have their car stolen, broken into, or damaged while it is parked overnight. Secondly, those who have shorter commutes to and from work are statistically less likely to be involved in an accident as they spend less time on the road than drivers with longer commutes.
Increasing Your Deductible Can Save You $100’s a Year
A deductible is the amount of money you are actually required to pay out in the event of an accident before your insurer will pay out on your claim. The amount of your deductible is also one of the biggest factors in determining your auto insurance premiums. In fact, the larger this deductible is, the less you’ll have to pay for coverage on a month-to-month basis.
Get Liability only if Your Car is Older
Most drivers automatically opt for full coverage on their vehicles when in reality, not every one of us needs full coverage. If you’re looking for cheap car insurance, try to find a policy that covers only the areas you need and nothing more.