Owning and driving a car means being responsible for yourself and others.
Car Insurance protects motorists and drivers against liability in the event of accidents they or others may cause. It can also provide coverage for the motorist’s own vehicle and if the accident is their fault, it can cover the other motorist’s vehicle as well.
Many different types of coverage are available, ranging from full coverage which usually covers anyone driving your vehicle and all those involved in the accident to third party coverage which protects individuals against liability should they injure a third party or cause damage to a third party’s property, but does not provide any coverage for the individual’s own vehicle or property, to comprehensive coverage, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties.
5 steps to follow to find the cheapest deal:
STEP 1: Deductable
Voluntary deductable – the easiest way to cut your insurance premiums is to accept a higher deductable. An insurer’s standard deductable may be $250; but if you decide on a higher deductable, say $500, you’ll see a reduction in your premium. This is because you are less of the risk so you get a discount by your insurance company. This however is a gamble, you should be aware though that you will be responsible for the first $500 of any claim, even if that means a broken window from someone trying to break in. In the long run though, it usually pays off, for instance, if you were in an accident that caused say, $2500 in damage, you would only pay the first $500 and the insurance company would pay the rest. The money you save on your policy payment would you have a lower deductable is well worth it!
STEP 2: Anti Theft
Many insurance companies will give you a discount if you have an anti theft device on your vehicle. This is especially true if you are living in a high-risk area which is known for car thefts or break ins. Check with the insurance company to see which types of anti theft devices are considered for a discount.
STEP 3: DRIVERS
Adding a driver to your policy can increase or reduce your premiums depending upon the driver’s age, sex and driving record. In most cases adding a young driver will increase your premiums. However, adding a driver over 30 with a long and clean driving record can cut premiums, particularly if the driver is a female.
STEP 4: MILEAGE
How you use your vehicle can also determine the cost of your policy. For example, if you only use your vehicle for pleasure, and only drive an average of … miles per year (determined by your insurance company) the cost of your policy will be lower than say, if you use your car for business or going back and forth to work therefore putting on more mileage and being on the road more often, which puts you at more risk for an accident.
STEP 5 – SHOP AROUND FOR GOOD RATES
Shopping around for the best rate is imperative in this economy. You should know that the car you drive can also have a big impact on how much your insurance policy will run. A sporty more expensive car is going to cost much more than an older more common model, so something to keep in mind when purchasing a vehicle. Use the internet to do some comparison shopping for different insurance companies and with a little work and effort you should find the best policy for you.
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