You finally have your own car. After many years of saving money, taking driving lessons, researching and then saving some more, you now finally have your dream car. But, before you can take it out for a spin, you still need one more thing: auto insurance.
If you’re a new member of the “Car Owners Club”, then you’re also new to auto insurance. But don’t worry! This article will help you find the best insurance for you, so that you and your car can hit the road as soon as possible. Without further ado, here are five important things that you need to know before signing any papers:
1. There’s more than one type of coverage.
Before you go out looking for car insurance, you need to know that there’s more than one type of coverage. Some types only cover the damage you cause to another person’s property, while others pay for bodily damage. But these don’t cover the damage to your own person or property. So you will need to consider additional coverage if you want to feel fully protected, at least from the financial point of view.
2. You can decide how you pay your auto insurance
Most people choose to pay their insurance each month, as they can better manage their money this way. But, if you want to save in the long run, you can opt to pay your insurance once a year, or once every six months. By paying this annual fee all at once, you will qualify for a discount from your insurance provider. It’s the only type of discount offered up-front by almost every insurance company.
3. You can share your policy
If you can share your car, then you can also share your policy. But this means you’ll have to pay more on additional coverage, depending on how many individuals you want to add to it. And the rates can be even higher if your insurance company considers them to present a greater risk of being involved in car accidents.
4. You don’t have to be a slave to risk assessment
Auto insurance providers look to a number of factors when assessing risk. These include age, sex, occupation, where you live, for how long have you been driving or your criminal history. The greater the risk, the higher the premiums. But don’t worry! You can get auto insurance discounts by taking defensive driving courses, paying your auto insurance in full, by insuring more than one vehicle on the same policy, by having good grades and being a good student, or even by adding safety features to your car, such as airbags or alarms.
5. You decide how high or low you want your deductibles to be
A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest. A low deductible means your insurance provider will cover most or all of the cost, but they also come with higher premiums. If you choose a higher deductible, you can lower your premiums and even save more money over time, especially if you’re a careful and responsible driver.
Americans are driving more today, thanks to rising employment and low gasoline prices. Unfortunately, they’re also getting into more accidents. That’s why finding the right auto insurance for you and your loved ones has now become more important than ever. You don’t have to settle for whatever comes your way. By doing just a little research, you can get an insurance that offers you all the protection that you need, at the right price.