Affordable Car Insurance
CAR INSURANCE:
Car Insurance Tailored To Your Needs:
How much Car Insurance liability coverage should I purchase?The amount of car insurance coverage you should purchase depends on your circumstances. Each state has its own minimum liability requirements, but the minimum might not be enough coverage to protect you, your passengers, or other injured parties, or to adequately cover property damage in the event of an accident. If you don’t have enough liability coverage, you may be personally responsible for compensating the injured parties and for repairing damaged property. You could even be sued for damages.
Vehicle Insurance, It’s not just wealthy drivers who need to worry about adequate coverage. Even if you have few assets, earn minimum wage, or do not own a home, you may still want to consider purchasing higher liability limits to protect you against lawsuits that could potentially result from an automobile accident. In the event you are involved in an automobile accident that requires litigation, liability auto insurance can cover the cost of your attorney’s fees.
Depending on your circumstance, the cost for additional liability coverage may be worth the peace of mind that comes with knowing you, your family, and your assets will be protected.
Car Insurance
Do I need comprehensive and/or collision coverage, with my auto insurance?
Unlike liability insurance, which can pay for injury or damage caused to another person or another person’s property, comprehensive and collision coverages will help pay for repairs to your car in the event of an accident. It will also cover your costs if your vehicle is totaled. In addition, comprehensive coverage can cover your costs in the event your vehicle is damaged or totaled in a natural disaster or fire.
Because comprehensive and collision coverages are intended to repair or replace your auto, the higher the price of your new or new-to-you vehicle, the greater the cost of the coverages. High performance, luxury, and sports cars will be more expensive to insure than more basic cars. However, despite what you may have heard, the color of your vehicle does not have any bearing on the cost of your insurance.
Car Insurance
If you are financing the purchase of a new or used vehicle, or if you are leasing a vehicle, the lienholder will require that comprehensive and collision coverages are in effect before driving the car home.
Depending on where you live and your driving record, purchasing certain types of insurance coverage can be expensive, and you may decide it’s not worth it. The cost to purchase your vehicle may be in some cases lower than the cost of the insurance policy. For example, if you received your auto as a gift from a relative or parent, you may opt for higher liability coverage rather than purchasing comprehensive and collision insurance. Research the value of your car using Kelley Blue Book and the safety of your car using Safecar.gov, Then, you can make a good decision about whether or not to purchase physical damage coverage.
When do I have to tell my Car insurance company about my new car Purchase?
It is always best to contact your agent prior to picking up your new or new-to-you car so he or she can provide you with proof of insurance before you drive the auto home. If you have an existing auto policy at the time of purchase, you may have anywhere from five to 30 days of automatic coverage for your replacement vehicle before you notify your agent, depending on the state in which you live. (Keep in mind that it may only be liability coverage.) If you do not have an existing policy, you will definitely need to purchase a policy before picking up your vehicle.
You also need to ensure that you’re in compliance with the motor vehicle registration laws in your state. Even if you have insurance coverage when you drive your new car home, your DMV paperwork will likely need to be in order as well.
What Car Insurance discounts are available to help reduce the cost of my insurance?
Most new auto come equipped with safety features that can reduce the cost of your auto coverage, including airbags, alarms, and anti-lock brakes. Other factors that may help reduce your insurance costs are:
- Defensive driving classes
- Good student discounts
- Pleasure use vs. driving to and from work
- Higher deductibles on physical damage coverage
- Mature driver/retiree discounts
- Multi-car discounts
- Multi-policy discounts
Whether you’re purchasing a car for yourself or a loved one, it’s important to give your insurance agent as much notice as possible. That way, you will have enough time to discuss your options and decide on the right coverages for you before driving that new car home.
Car Insurance Dollars vs. Deductibles
For insurance, recommends a $1,000 deductible. That’s a lot of money, but if you’re following the Baby Steps, you know the first step is to save up $1,000 for emergencies. That means you can cover your deductible if you need to, and you’ll save money with lower car insurance premiums.
Before you sign up for a $1,000 deductible, however, make sure it’s worth the extra risk by conducting a break-even analysis. By raising your deductible from $500 to $1,000, for example, you increase your risk by $500. If that reduces your annual premium by $50, you’ll have to go 10 years without an accident to break even—not a great deal.
But, if increasing your deductible knocks $150 off your annual premium, you’ll break even in just more than three years, which makes more sense.
To Skimp or Not to Skimp
One place where you don’t want to skimp on car insurance is your liability coverage. Liability covers property damage and medical bills if you’re at fault in a car accident. It’s also one of the best deals in the insurance world, so make sure your policy includes at least $500,000 in liability coverage.
If you drive an older car, you can consider dropping your collision coverage, which pays to repair your car. A break-even analysis can help you here too. If you drive a $5,000 car, and dropping your collision coverage would save you $800 a year, you’d have to go more than six years without a wreck to break even.
One more thing to think about before you drop collision coverage: If you total your car in a wreck that’s your fault, you won’t receive any money from the insurance company to buy a new one. So make sure you have enough savings to replace your car before you make changes to your coverage.
Fortunately, most major insurers have easy and fast online quoting processes. And you’ll save even more time if you have the right information handy when you start your quote request.
Basic personal data. Who are you? Where do you live? When were you born? Most car insurance quotes will start with this information. Be sure to list the place where your car will be parked most often as your address, not a friend’s or family member’s home.
Vehicle information. The online quoting form will generally ask whether you own, finance or lease the vehicle you’d like to insure, what safety features it has, and how many miles you drive daily and annually. Have your car’s VIN (vehicle identification number) handy.
In addition, the insurer will want to know about the “use” of the car — for example, for driving to work or for pleasure. This helps the company give you an accurate auto insurance quote. If you use your car to do your job — outside of commuting — you should get a quote for a business auto policy. This typically costs more than personal auto coverage.
Driver information. The auto insurer will ask about you and any other licensed drivers in your household, including how long you’ve been licensed and whether you own your home. They’ll probably also ask what company insures you now.
Driving history. Most companies will want to determine how “risky” you are as a driver. Have any drivers in your household had a moving violation, an accident or a claim in the last few years? most companies consider violations as old as three years, so you may have to do some digging for the data you need. Try to find the dates of the problem so that you don’t have to guess.
Desired coverage limits. Have the declarations page of your current or most recent auto insurance policy handy. This will help you fill in coverage levels for liability, collision and comprehensive, and choose deductibles. Inputting your current coverage limits helps you compare apples to apples.
Many Agencies can give you a quick auto insurance quote these days, especially if you’re prepared for the process. Online quotes will help you narrow down your options but they’re not always binding. Once you’ve submitted your quote, an agent or company representative should contact you. He or she may have follow-up questions and can provide a final price.
Car Insurance
Another type of insurance policy that is often required is auto insurance. Most states require by law that you have basic auto insurance. While it may be a law, too many people still drive around without it.
The most common reason to have auto insurance is to cover the replacement of an expensive asset. Like a home, automobiles can be quite expensive and if it gets damaged you want to be able to repair or replace it. But there is more to Car Insurance than just covering the car itself.
Most auto insurance policies cover bodily injury or death of another person in an incident that you are legally responsible. While it generally pays for medical expenses related to the incident it can also cover legal defense costs. You will also generally find medical payment coverage that pays for medical treatment for you and your passengers during an accident regardless of who was at fault.
Car Insurance is always required if you own and operate a car. It is common for people to ask, but what if? An endless amount of circumstances can be played out to warrant the question, do I need Car Insurance ?
I Don’t Own a Car
Not owning a car may lead you to believe you do not need Car Insurance. However, if you are a licensed driver, car insurance is still needed. You may not own a car at the moment for many possible reasons.
Being a teen driver, the economy, or your urban location may get in the way of car ownership. You should keep some car insurance for the following reasons.
- You may need liability. Coverage for liability may not be necessary if you literally never get behind the wheel, but if you ever drive someone else’s vehicle you could be found liable in an accident.
- Even car passengers need coverage for medical. Coverage for medical in case of injury in a car accident is important. Sometimes primary health insurance carriers will cover injuries in accidents, but more and more health insurance companies exclude car accidents.
- Avoid high risk rates when purchasing your next vehicle. Lapsing on your car insurance for just about any reason means you’ll be high risk the next time you go to purchase car insurance.
One way to help you stay covered while you don’t own a vehicle is to be added as a driver to a friend or family member’s policy. Another would be to purchase a Named Non owners car insurance policy which is cheaper than a traditional car insurance policy, but still provides coverage for liability.
I Lease a Car
If you are Leasing a car, you definitely need car insurance. Technically you do not own a leased vehicle; however, you are responsible for insuring it while it’s in your possession. Not only is insurance required, you need to have full coverage. Gap insurance is also highly recommended and often required when leasing .
I Can’t Afford Car Insurance.
It can be difficult to manage the high cost of auto insurance premiums. It’s important to make car insurance one of your high priority bills. It’s against the law to drive a car without insurance. Reduce your coverage to the bare minimum, shop for cheaper Insurance rates, and avoid extra service fees by paying on time. In the long run, cancelling your vehicle insurance will not save you money. A potential accident, traffic violation, or high risk insurance rate will leave you wishing you had just kept your Auto Insurance.
I’m Sick and Can’t Drive
Even when you are sick or disabled for a long period of time you should maintain Auto insurance. Retain insurance on your own vehicle especially if you are having other people drive it. Or, get listed as a driver on a friend or family member’s policy to avoid high risk rates in the future. Being listed on someone else’s policy will also provide you with the necessary medical coverage in case of a accident.
My Car Broke Down
Similar to the other scenarios, if you only have one vehicle and it is broke down you’ll want to keep auto insurance on it. Hopefully, your vehicle will not be down for long. Extending coverage to a car needing repairs for a couple weeks is a whole lot cheaper than purchasing a high risk policy due to a lapse.
I Sold my Car and have Not Found a Replacement
It works the same if you are in between autos for a short period of time. You are better off lowering your coverage down to the bare minimum and keeping up on the payments verse cancelling your policy. An alternative here would be to get listed as a driver on a friend or family member’s auto insurance policy until you find a replacement.
I’m Deployed in the Military
Active duty military personnel are not required to have auto insurance while deployed overseas. A family vehicle, still driven by the family at home will obviously still need to be insured. This exception is for single people, or a husband and wife both deployed and leaving their vehicle behind. A returning military serviceman is not considered high risk when going to purchase auto insurance again.
As you can see, it is rare not to need auto insurance. It is every licensed driver’s responsibility to maintain some form of auto insurance. Whether it’s being listed as a driver on someone else’s policy or taking out a Named Non-Owner auto insurance policy, at least you know you’ll be covered. And you won’t be forced to pay sky high insurance rates when you go to get insurance in the future.