Lowering Car Insurance Rate

– Deductibles. Changing the deductibles on your insurance can have a drastic influence on your insurance rate. You should make your deductible for collision coverage as high as you feel comfortable with. By having it as high as $1000, can make a big difference on your insurance. On the other hand, you probably want a low deductible on comprehensive coverage, since you do not want to be stuck with a big bill if someone hits your car in a parking lot and runs off. Take the value of your car in consideration. If your car is worth less than say $3000, you can probably drop collision coverage completely and save enough money in a couple of years to replace your vehicle.

– Sports and four-wheel drive cars carry a significantly higher premium than other cars, especially if you are under 25 years old. Make sure you can afford the insurance before buying such a vehicle.

– An anti-theft device carries a lot of weight with insurance companies. If your car does not have one, it might be worthwhile to have one installed. You could have one installed for as little as $100.

– Avoid unnecessary and frivolous claims. It might sound like common sense, but a lot of people abuse their insurance with petty claims. Consider how much your deductible is and how much the repairs will cost. If may be worth your while to pay out of pocket, since many companies reward drivers for being claim free.

– Exaggerating the value of your car does not impress anybody and will cause a higher insurance rate. Only insure it for the amount you need for replacement and update this amount annually.

– If you can, pay your premiums annually instead of monthly or quarterly. Insurance companies often add a service, or interest fee if you choose to pay monthly.

Insure Rental Car

If you do need rental insurance, you’ll find there are several different types you can buy. Let’s take a look at the main types of add on insurance:

Collision damage or loss damage waiver: This type covers everything, including the deductible, in the event of a crash. This might not be needed for some private insurance policy holders, but it can be a real money saver in an emergency for those who do need it. This coverage is generally fairly inexpensive. Do remember to check with your company before buying this type. It’s very possible you already have it. If paying by credit card, also check with the credit card company before buying this option as some credit cards cover this, too.

Personal accident coverage: This insurance option covers accidental death and medical situations for the renter and passengers. Many times this coverage is not needed as personal insurance on your own car tends to travel with you. Be safe though and ask before you turn this down. It generally isn’t very expensive, but what it covers can be.

Property coverage: There is an option that will cover all your belongings in a rental car from such things as loss, theft or even destruction in an accident. Again, private auto insurance policies will generally travel to the rental car and cover these things, but do find out before you turn it down. This type of auto coverage is generally pretty cheap, and it can be very welcomed if it’s needed.

Liability: Here and again this type may not be necessary for those who have their own private insurance, but it’s a very important coverage if it’s needed. Liability covers you from claims made by others for injury, death and/or property damage.

Many of the major dollar rent auto insurance coverage types available might not be necessary purchases if you have good private auto insurance, but it pays to find out. Being covered in a rental car can be a very big deal if there’s an accident or theft takes place. Nothing can ruin a vacation quicker than an uncovered accident. Check with your insurance company to be sure, and if you’re not covered, cheap car rental insurance can help.

Decide On How Much Auto Insurance To Buy

When it comes to protecting yourself, the best bet is to err on the side of caution and be a little more liberal with the limits of an automobile policy where they really count. In fact any good insurance agent worth their salt will tell you that you should buy as much car insurance as you can afford. While this is a good guideline it doesn’t really help you. The advice is about as useful as a stockbroker’s tip to buy low and sell high. It might be good basic advice but it doesn’t get you any closer to an informed decision. Stick with me and I’ll attempt to explain the process of buying the right car insurance in easy laymen terms.

To begin with, the portion of auto insurance that really comes into play when you have an accident involving other people and/or property is the liability coverage and/or bodily injury protection.

In many states, this coverage is the law. This is smart, very smart. But, and this is where the confusion starts, the problem is the required limits are often very low. This leaves the door open in the event of a major crash that the other party will come after the driver directly for any damages over and above the policy limits.

Let me illustrate: If you live in a state where the minimum liability requirement is for example, $40,000, that’s all the insurance will cover in a crash. It might sound a lot but that means that if another person’s injuries are severe or property damage is extensive, the actual costs can be very much greater. You’ll find that the $40,000 doesn’t go very far and is not nearly enough.

To give you an idea of what sort of problems this can cause, just check the price of an average one-night stay in a hospital. It is not cheap. This means the person involved in the crash or the owner of the property might come after you for the difference. This can and does happen.

You can be prepared for this kind of situation by protecting yourself and your assets in a crash by simply increasing the limit on bodily injury coverage and liability insurance. So instead of taking that basic $40,000 limit, go for $100,000 per person and $300,000 per accident instead. Surprisingly the cost difference of the insurance policy isn’t that big but the savings down the road in the event of an accident can be great.

Here is something else to consider: While it’s not always the case, a higher limit policy can give a lawyer leverage on your behalf after an accident. More often than not, the other party will be willing to settle for the limit of the policy. This is good news for you and can keep you out of court. But, if the policy you have is low on coverage, then they might not be so keen to settle. What you will usually find instead is that they will opt to sue you directly, something you really don’t want to have happen.

Hopefully I have given you a few things to think about. While having too much insurance is a waste of money, not having enough can lead to tragic events, which will have effects on the rest of your life. If you are wise you will protect yourself and your assets in the event of a crash by making sure a reasonable amount of coverage is provided.

Travel Safe with Car Insurance

Even though it’s illegal to skip out on your state’s car insurance or financial responsibility requirements, the fact is that many people to skip out. This is why it’s so important for you to protect yourself with adequate car insurance or financial responsibility, especially if you frequently travel. When we travel, we aren’t always familiar with the interstate highways and smaller town roads we drive to get to our destinations. Other drivers may be just as unfamiliar with the roads as you are. This unfamiliarity can lead to motor vehicle-related accidents.

If you’re involved in a motor vehicle-related accident with a driver who doesn’t have any car insurance, much less adequate car insurance, you’ll be able to rest assured that you’ll at least be covered. You can do this by not only meeting your state’s car insurance or financial responsibility requirements, but by exceeding them. Consider going beyond just purchasing liability insurance and purchasing full coverage insurance. You should also look into underinsured motor insurance coverage – this will protect you in the event that you’re involved in an accident with a driver who has no insurance, or not enough insurance, to cover physical and property damages.