If you follow the rules your insurance company sets out, and follow these few tips, you’ll be able to obtain affordable auto insurance with no problems. There are several sets of criteria used to determine insurance rates.
It is important that your license remains clean. Any accidents or tickets will drive up the cost of your premiums. If you already have an accident or tickets on your driving record, you may be able to lower your insurance costs by taking a traffic course.
To save cash when buying auto insurance for a teenage driver, be sure to determine if you will pay less if you get them a separate policy or if you should just add them to the policy that you have. Factors such as vehicles on your policy may make it less expensive to buy a different policy for your teenager.
Most states require that you pay for liability insurance. As a citizen, it is your responsibility to be aware of your state’s auto insurance requirements, and to maintain a policy that meets or exceeds the minimum levels of coverage mandated by your state. Being involved in an accident is bad enough, but if your insurance doesn’t meet state requirements, you have extra legal trouble on top of any damage you have to deal with.
You should understand that when you buy auto insurance, the basic policy only covers the driver who is named in the policy. Often people will allow a buddy to use their vehicle, but if the buddy is involved in a car accident, the insurance company can deny payment of any claims. You can alter your car insurance policy to cover other drivers that use your car, although you will need to pay an additional charge.
The auto insurance you purchase should include property damage liability. This covers any damage your car may have created during an auto accident. It’s technically required in all states, except for three. It may seem expensive now, but if you were to get into an auto accident, property liability insurance can save you a large amount of money.
Your car insurance will be cheaper if you have a good driving record. Nothing else will make your premiums jump higher than having an accident. Know your limits when driving, and avoid situations that put you in risk of an accident. For example, if you have a hard time seeing the road late at night, avoid driving during this time.
If you plan on moving soon, look into how your new home will affect your insurance rates. The insurance companies look at the theft rate, and will raise the policy if you live in an area where that is high. If you live in a city, you will also have to pay a little more for your car insurance compared to living in a suburb or rural area.
It is not a good idea to buy your teenager a car. Rather, encourage them to use a car that is already owned by the family. You’ll save money by adding a teenage driver to your current insurance policy. Not only that, but with many insurance companies offering discounts to good students, they may qualify for a reduced rate on their policy.
Being penalized for poor driving can really raise your insurance rates. By that same token, your auto insurance rates can also rapidly plummet once the negative items are expunged from your record. After you clean up your record, check with your insurer about premium reductions or even go looking for a new, better deal.
Auto insurance that is affordable is not just a myth. Use these tips to help you lower your car insurance premiums.