Since driving without car insurance is illegal in most places, going without it isn't an option even for one day. If you need a little help understanding car insurance companies and the basics of their insurance companies, you're not alone. Here is a breakdown of car insurance basics.
Understanding your policy will play a large role in the way you handle a car accident, rent a car, or renegotiate your next policy. There are many parts to an insurance policy, beginning with the coverage. Bodily Injury and Personal Property Liability are to major components that insure you (as the policy holder) against damage to other people and their property. Often you will find that you are required to carry a minimum amount for these two parts of the policy, but some people think the minimums are too low.
Personal Injury Protection (PIP) will pay for lost wages as a result of injury from an accident and cover any medical bills incurred. Depending on your disability insurance, which should cover the same circumstances, you may not need PIP, or may only need to carry the minimum amount. Be very careful before you remove this from your policy entirely. Collision and Comprehensive cover accidents, whether you hit someone or hit a pole, while Comprehensive covers events like theft and natural disaster. If you have an older model car, consider waiving these fees if the cost of repair might outstrip the cost of the vehicle. For new cars, make sure your deductible is what you can afford to pay for repairs. The higher the deductible, the lower your overall cost of the policy. Uninsured Motorist protects you against accidents with drivers who are uninsured. If you have an accident with an uninsured driver, there is nothing you can do to recoup the cost for damages.
Car insurance rates have many variables to consider. The age and experience of the driver, the type and age of the car, the distance you travel to work, the milage on the car – everything feeds into the complex algorithms insurance companies use to determine individual car insurance rates. A young driver in a new car is guaranteed to pay much more than an older driver in a new car. Same can be said for accident prone drivers and accident-free drivers. If you appear to have risk attached to your driving record, your insurance rates will go up.
Ask just about any driver on the road today if they're happy with their car insurance rates, and you'll probably get mixed reactions. Of course, most of us would love to pay less for insurance, but most ofus aren't sure how to access truly cheap car insurance. It's not magic. Go get several online car insurance quotes and compare them, then go to an insurance company and ask them to beat the best. This is one of the best ways to get the best deal – having a good driving record is by far the simplest way, though.