Auto Restoration Guide New Used Car Price Car Insurance Tips
Nowadays the car insurance market is an endless maze of offers, options coverage areas and many other conditions that are certainly going to give you a headache. Feeling lost? Don’t worry it’s very understandable, you’re not the only one. Here are a few tips to skim through so that yon don’t pay a fortune for a car insurance contract with a poor coverage area (worst case scenario).
First of all you need to think about the coverage area because, despite the fact that you’re buying a single insurance policy destined for a specific type of vehicle, there are a couple of features that together form the final cost
You have bodily injury liability that covers an area of injuries and death claims, certain legal costs, in case your car injures someone in an accident. The Property damage liability covers claims for certain propriety that your car may have damaged in a collision. This is a requirement in just about all states since it protects you, as well as the other party. Another reliable option would le the Medical Payments that covers the cost for medical treatment required by you or the people in your car in case of injuries in a collision. Collision coverage, as the name sais it, covers the damage sustained to your car up to it’s price in the book value. Collision coverage may be deducted as the amount of money you pay before the insurance kicks in. and finally Comprehensive that covers your car in case of theft, vandalism or disasters and other non-accident related causes.
Next step is the premium. You should know that if you’re insuring a sports car or an expensive SUV the insurance company will increase the fees for your area of coverage. Insurance premiums are calculated partly by the value of the car, which increases the cost of replacements in case the car is stolen or completely smashed in an accident. Again the interventions upon a car, eventual parts needed and manual labor can affect the cost. Of course all these parameters vary from company to company. For example if a company has more theft and collision claims it is logical that they will increase their fee.
Knowing these parameters you can now make some adjustments to your insurance contract. Keep in mind that it’s dangerous to be underinsured but an expensive insurance contract will lead to many expenses and unpleasant situations. Most state laws require a minimum coverage of $15.000 per person, an accident needs to be covered at a minimum of $30.000 and at least $7000 for property damage. In you feel you can afford more than the minimum go for it. Think of the fact that you are insured for $7000 and you smash a $50000 Mustang. What then? Think it through.
As stated before, premiums are directly related to the car’s value. If you own, or want to buy a vehicle, you need to consult an insurance agent about the insurance fees that will come with buying a vehicle. There are some ways in which you can save money on your insurance: car pooling, using public transportation for getting around small distances or driving less than 7500 miles/year will make your insurance go down. Even the kind of person you are might help you get certain discounts: people that don’t drink alcohol or smoke are classified as “defensive drivers” and are qualified for discounts. Even good driving skills can give you discounts, non existent traffic violations and accidents will drop your fees considerably.
Take all these things in consideration for a bigger pocket.
Post tags: Tags: Auto Restoration Guide New Used Car Price Car Insurance Tips, collision coverage, coverage, defensive drivers, property damage