Your car is an investment that you need to protect, having car insurance that you can rely on is a good way to make sure that you are not left in a difficult and expensive position following an accident. Not only is the financial concern major, you also need to have car insurance for your vehicle as a legal requirement.
Here are 9 things that you need to know about car insurance.
1. The Minimums
Keeping your coverage to the absolute minimum might sound like a great idea when it comes to monthly payments. However, if the coverage is not there to help you out should the worst happen, it is just a waste of money.
2. Lower premium = larger deductible
The same is true if you opt to have a policy that has high deductibles, this will give you a cheaper premium, although, when it comes time to pay the mechanic or body shop for repairs you will find yourself with a very large bill. If you are disciplined enough to maintain a large enough amount of cash that will allow you to cover these expenses, then maybe this is the right way to go. For most people though, it is best to have a higher premium, that will cover more of the cost of repairs should an accident happen.
3. You should still look for a great deal though!
As you probably know, you can shop around and find great discounts for almost anything. This includes car insurance. By spending a little bit of time exploring your options you may find that you are able to find great coverage for a cheaper premium compared to what you are paying now.
4. Lower your premiums
There are some great ways that you can lower your premiums by simply taking some initiative. If you take a driving course that is recognised by the insurance companies in your area (check first) then you will be able to reduce your premiums. Your premium is also calculated based on a number of factors such as your postcode and where you park your car.
5. Consolidate policies
It is possible to save money on your insurance premium by combining your insurance policy with your partner, or rolling the car insurance policy into the home insurance you have. Many insurance companies will provide both services, and give you an incentive to combine them.
6. Ask about a temporary replacement car
If your car needs to be worked on for a couple of days to repair damage caused by an accident, you will still need to get to and from your work and get the groceries. For this reason, you should make sure that the policy that you are looking at will provide you with a loaner car until your car is fit to drive again.
7. Be honest
You should be truthful on your insurance forms, it can be very tempting to say that you park in a secured parking garage instead of the street to save on your premium. Lying on your paperwork can cause severe repercussions and should be avoided at all costs.
8. Claim only when you must
If you claim on your insurance for the slightest ding or scrape, you will be able to maintain that straight out of the dealership shine, however your premiums will rise as a result. Make sure that you have weighed up the consequences of filing an insurance claim for something that is not entirely necessary.
9. Use your car for work?
If you are using your vehicle for work, you may find that you are not as well covered as you think you are. The first thing that you should do is to have a discussion with your insurance provider to make sure that you are covered while you use your vehicle for whatever purpose you have in mind for it.