We’re all looking to save a few bucks these days and a good place to start is by checking out whether you are getting the best deal on your auto insurance. It’s easy to just click renew every year without weighing up the options, however if you consider your requirements carefully, you could end up saving yourself some cash.
Points to consider
What does your insurance cover you for - accidents happen and whether the collision is yours or somebody else's fault, it is a good idea to check out what a company's policy does and does not cover you for. This will ensure that you are not landed with any hidden surprises should you need to make a claim.
Do you need personal injury and personal liability - to give you added peace of mind, personal injury and liability will ensure that both you and your family will be looked after financially should you need to make a claim.
Protect yourself against uninsured drivers - Auto Insurance is compulsory, however there are plenty of drivers who choose to take the risk, by not taking out insurance. You can opt to purchase uninsured motorist insurance to cover you for this.
Equally don't be upsold insurance you don’t need - make sure that the insurance agent is not selling you more cover than you need.
Car Breakdown Cover - you will have the option to add car breakdown cover to your policy. Do your homework and check out whether this is cost-effective or if you are better taking out a separate policy.
6 Main Types Of Cover
Liability Insurance - covers you against damages to other people and their property. Liability insurance will not cover any damages or injuries to you or your vehicle.
Collision Insurance - covers the cost of damages to your car in the case that you are involved in a collision regardless of who is at fault.
Comprehensive Insurance - covers damages due to theft, vandalism, natural disasters, civil disturbances, and more.
Medical Payments Insurance - covers medical treatments for both yourself and your passengers, regardless of whether you or another driver is at fault in an accident. This type of insurance is not available in all states.
Personal Injury Protection Insurance - while MedPay covers the medical bills, PIP also covers medical treatment and other injury-related losses such as lost wages.
Uninsured/Underinsured Motorist Insurance - Protects you in the case that you are involved in an accident with a motorist who doesn’t have sufficient insurance.
7 Tips To Help Save You Money
1. Careful Drivers Will Be Rewarded - Insurance Companies often offer discounts to no claim drivers.
2. Buy a car that suits your needs - depending on the make, model, value, age and use of your car will determine your car insurance premium.
3. Increase Your Excess - choosing a higher excess will result in a cheaper price on your car insurance policy.
4. Pay all at once – if you can afford to pay for your policy upfront it will usually work out cheaper than if you opt to pay monthly.
5. Enhance your security - the harder it is to steal your car, will usually result in lower insurance prices. Fitting added security features, could help you get cheaper car insurance.
6. Be accurate with your mileage - don't under or over-estimate your mileage, check the clock and get the real figure.
7. Look at how you use your car - make sure your policy reflects the way you use your car. If you're only using it to drive to the shops, you don't need a policy that covers commuting.