If you drive, or even if you just own a car, you need car insurance. But how do you know which policy to buy.
First, it’s important to be sure what your policy does and does not cover. If the policy does not give you enough liability coverage to protect your income and assets, or if it does not cover your unique driving situations, then you need to tell your agent about your needs and ask him or her for a new quote. While you are legally required to maintain car insurance, you also need to be sure your policy will take care of you in case of a crash or a breakdown. When you are shopping around, having a written record of the quote keeps the agent from attempting to raise your price if you decide to buy their insurance.
If you also insure your home, or you have life insurance, ask about bundling your policies. Bundling means you get all your insurance from the same company. Insurance companies offer significant savings to keep you as their customer for multiple kinds of coverage, and the simplified billing makes budgeting and paying?and making sure you have paid?much easier.
Where you live impacts your insurance rates. Car insurance is more expensive in metro areas than in rural areas, especially if you own an expensive car. More expensive cars require more expensive car insurance. You will also want to check your car?s safety rating. Safer cars are cheaper to insurance, while flashier models cost more.
Always ask about discounts. Insurance companies often offer lower rates to women, seniors, households with multiple drivers, holders of bundled policies, and men and women in the armed forces. You often can get a cheaper policy if you belong to certain organizations and clubs, like AARP. If you have a teenaged driver in your household, and he or she is a good student, ask about good student discounts. Your teen can also get you lower premiums by enrolling in and completing driver ed or a defensive driving course.
Finally, it’s always a good idea to shop around. Get multiple quotes on your auto coverage. There’s always a possibility that another company will offer you better coverage at a lower price?it happens all the time. The insurance companies make it easier to shop around that it used to be, especially if you are comfortable looking for coverage on the Internet. Do you research to find out the discount programs that may save you money, the risk assessment for your neighborhood, and the safety rating of your vehicle? Going to your insurance broker armed with information makes it much more likely you will get the lowest possible rates.
No matter how large or how small your insurance needs, always deal with professional, authorized insurance agents. They will help you determine exactly the coverage you need and answer all your questions.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
Tags: auto insurance, automotive, car insurance, Insurance Cars, personal finance, vehicle insurance, Vehicles