Requested: Advice On Securing Discount Auto Insurance
posted on 03/11/2009
I just bought my own car. How can I secure discount auto insurance? Thanks.
Advice given in response to this request:
Securing Discount Auto InsuranceUnderstanding how the coverage works: Automobile insurance is comprised of six to nine basic coverages. Bodily injury liability pays on your behalf for damage you do to other people when you hit them with your car. Property Damage liability pays on your behalf for damage you do to other people's property. Personal Injury Protection helps pay your medical bills in the event that you or a m... read more »
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Previous Comments
georgian says:
(255d 19h 44min ago)
Having car insurance is essential, and in most cases it is required by law. Choosing the right insurance provider and coverage can seem like an overwhelming task. This decision is made even harder by all of the ads on television from insurance companies who all claim to provide the best price and service. In order to make this difficult and important decision you need to first figure out what your insurance needs and liabilities are.
You said you are a first time car buyer, so I am assuming you are young. Drivers under 25 pay much higher rates due in part lack of experience driving and lack of an established clean driving record. The main factor in determining the rate you will pay is you driving record and claims you have made. If you have received any tickets or been in any accidents, you will pay a much higher rate. Also, if you have any insurance claims your rates will increase. So the best way you can get a discount on insurance, odd as it sounds, is to never need it and never use it.
You must determine how much insurance you actually need. Everyone must have liability insurance. Other types of insurance are optional and depend on your own circumstances. If you have an expensive car then you will need collision insurance. You also might be required to have this if you have a car loan. However, if you car is only worth $1200 you need to decide if it is cost worthy to spend $800 every year to insure it against collisions.
Other types of insurance you may or not need are medical and comprehensive insurance. If you already have good health insurance then you might want to go without additional medical insurance from your car insurance. The medical coverage does cover your passengers, though, so consider if the people who will likely be riding in your car have health insurance of not.
Comprehensive covers many types of damage including theft, vandalism and natural damage. If you live or work in a high crime area then this might be a necessity for you. Also if you park under or around trees then comprehensive coverage is a good idea.
Once you have determined what your insurance needs are, you are ready to shop around for the best rates. The key here is to shop, don't just call an insurance agent and buy whatever they tell you. They are salesman, and will often sell you whatever will get them the most commission. Use the Internet and go to insurance company website. Most allow you to choose the coverage and will give you a no obligation quote. Then you can compare all of the rates, or use those rates when you contact an insurance agent to be sure you get a good deal.