Auto insurance isn’t just about the car. Every auto insurance policy owner should take the time to read their insurance policies. Some auto insurance policies are actually a package designed to cover risks ranging from lawsuits and property damage to medical expenses and even death.
To shop wisely for auto insurance, you need to look at the separate components to be able to search for possible discounts and then decide the best way to spend your money.
Normally, car drivers are generally unaware of the myriad factors that determine auto insurance rates. In the US, people with good credit ratings tend to get better rates, as do drivers who take driving safety courses and students whose grade point is above 3.0.
There are also savings available for people who carpool to the office, cars that have safety and security systems, and people who buy multiple insurance policies from one company.
When you shop for your auto insurance, don’t skimp o critical areas, like the liability and bodily injury coverage built into your auto insurance policy. If you’re at fault in an accident, it’s the liability part of your auto insurance policy that will pay for bodily injury and property damage to others, as well as any legal fees and judgments.
And if you trim your insurance premium by reducing your bodily insurance coverage, you could end up with insufficient protection if an uninsured or underinsured driver hits you.
Look also for savings in other parts of your auto policy. If your car’s odometer has crossed, say the 100,000 mile mark, for example, it may not make sense to pay for collision coverage which could quickly end up costing more than you’d collect if the car was total wrecked. And if you’re unlikely to file a small claim because it will raise your rates, don’t bother paying extra for low deductibles that you won’t actually use.
Finally, don’t forget to consider insurance costs when shopping for a new car. Often, the more expensive the car is, the higher the insurance costs it will have.