Buying car insurance is a tricky business. The insured wants the best of coverages at the least prices. However, in the ideal world, it is really not possible to have the best cuts of both the worlds. The better solution would be to optimize and balance the insurance coverage and insurance prices. Here are a few car insurance tips that will help you achieve this
Coverage: Most states provide guidelines and minimum requirements of insurance coverage. But, these are just guidelines and there are other considerations that the insured must ponder about. For example, the property damage liability is set very low in most guidelines while the actually the average cost of cars on the road are relatively higher. So is the case for other parameters too. The insured needs to check on all liability parameters and then decide on the coverage, even if it means that he/she has to pay higher premiums. They will not regret this when it is ‘claim’ time.
Vehicle type: Often, the type of car decides the premium amount. High end cars attract larger premiums. So do cars that have a track record of often getting stolen. While adding safety features to the car reduces some of the premium, it always is better to select your wheels that are adequate and midrange.
Driving record: If you have a recent traffic violation or a ticket in your record, you are better off sticking with your existing insurance. The insured also needs to know the status of traffic points in their records, especially during renewal time. Old infringements disappear from the records over a period of time and when that happens, you do not have to pay any extra premiums. DO not expect the insurance company to inform you about it. You have to negotiate with the insurance company about this to get a better deal.
Same insurer: This car insurance tip is probably the most important of all. Buy your car insurance from the same company that has insured your home. You will end up getting good discounts on both the premiums. Also, staying with the same insurer gives the insured an additional percentage of discounts on the premiums. Loyalty pays big time in the insurance world.
Review policy and cover periodically: The value of your vehicle depreciates as time goes by. You will have to insure your vehicle at the current cost and not on the price you purchased it for. This factor is mostly ignored by insureds and this results in high premiums.
Other factors: High deductibles on the insurance are a good way to reduce your premium payments. Good credit history and lesser travel mileage on you car also attract lesser premiums. While shopping for car insurance, the buyer needs to compare products and also needs to identify the discounts that one is eligible for. Try and protect your car insurance against claims to benefit from the no claims bonus that all insurers offer. This bonus discount is the most substantial of all other discounts and cannot be neglected. These car insurance tips, if followed correctly, can benefit the insureds in reducing the over all costs on their car insurances.