Insurance is one of the aspects of life that you hate to pay for and given the choice you wouldnâ€™t bother. In fact, many Americans choose not to purchase any form of insurance when given a choice. Take for example healthcare, travel, life, and so on. Granted, most would purchase insurance in some cases (such as healthcare) if it was affordable to them, but the fact remains, if itâ€™s not mandatory, insurance is not our first option to spend our money.
One of the forms of insurance that is mandatory is car insurance. There are a variety of different forms of car insurance that ranges from comprehensive packages covering damage to both yourself and others involved in an accident, vandalism, theft, and so forth. The list goes on with what you can cover but most people will at some point opt for the mandatory minimum level of coverage in order to drive.
The question is, what level of insurance is right for you, and when you have determined what youâ€™d like to cover and what your budget is, which company should you choose to be your insurer? The options seem to be limitless, but thatâ€™s one of the keys, because there are numerous options to consumers, itâ€™s best to spend some time in comparison.
Start by investigating your State laws by visiting the government web site on automobiles. You should then take the information you have and begin browsing web sites that offer comparison between multiple local, state, and national insurance agencies in one place. Although bigger is not always better, smaller doesnâ€™t necessarily mean trust either.
Once youâ€™ve used the web to view your choices of car insurance options, go one step further and actually investigate the insurance agency youâ€™ve chosen by visiting their official web site. From there you will understand full options available to you and what to expect when closing the deal.
Some will ignore insurance all together, but letâ€™s assume you are a good law abiding citizen and do purchase at least the bare minimum. Those with older cars, or who canâ€™t afford more comprehensive insurance, tend to opt for this type of coverage.
The mandatory minimum levels of insurance actually varies between State and province. But is it really a good idea to try to go for the absolute cheapest rate?
For example, currently all States except for Florida, New Hampshire, and Wisconsin, require liability insurance. Liability insurance essentially covers those who suffer a loss and are not explicitly covered within your insurance. You obviously play higher premiums for this coverage, yet considering only 3 States do not have mandatory liability insurance requirements, itâ€™s a good idea to try your best to get this type of coverage.
Letâ€™s talk about premiums, which are the value you pay generally monthly to hold insurance. You can actually reduce your premium payment if you so choose by opting out of certain services. More comprehensive coverage like theft, vandalism, broken windshields, etc., will cost more per month (or whichever payment period you arrange.)
However, did you know that you can reduce your premiums in other ways?
For example, letâ€™s say you have a deductible of $500, (a deductible is the amount, given a loss, you must cover yourself before your insurance kicks in). In reality, any small fender bender will cost far more than $500, and letâ€™s assume you can afford a deductible of $1000. If you request to have your deductible increased
Consumers sometimes opt for the smallest deductible possible in an effort to maximize their coverage. However, if nothing get stolen or bumped, and you can replace your CDs for cheap (meaning no big loss to you), then it may be financially prudent to assume more risk for yourself. Reducing your deductible will reduce your premiums.
When it comes to car insurance the obvious factors will come into play when it comes to reducing your premiums. For example, thereâ€™s not much you can do to save money if you have a history of dangerous driving, many speeding tickets, numerous car accidents, etc.
However, the fact of life, and the purpose of car insurance, is to cover these events because they occur. If thatâ€™s you then you probably already know you are in the running for a premium increase (if you havenâ€™t already). Do you still have options to shop around insurance agencies with a track record as a bad driver?
The answer is simply yes, although you do have different options if you have a bad driving history, and you will pay higher premiums than the person with a clean record. However, all licensed drivers require insurance and that market is still profitable for insurers.
Common sense generally comes into play here. If youâ€™re consistently a poor driver and have little regard for both insurers and others on the road, then finding a new insurer that will be affordable will be difficult. But if you have developed a clean record after a string of claims (a claim is when you file a request to the insurer to intervene for a loss) then you will certainly have more money saving options.