Auto Insurance - Cut Costs - Not Cover

Auto Insurance - Cut Costs - Not Cover

Auto
insurance is a minimum requirement for a car owner or driver in every
US state, Canadian province and pretty much every country in the world.
If you have a car, then auto insurance is something that you must have,
period.

The downside, however, is that costs are continuing to
rise, so it clearly makes sense to look for ways to reduce some of the
expense, whilst still seeking the best coverage available for your
dollars. So, lets look at some ways of doing this.

Firstly, use
the power of the internet to get multiple auto insurance quotes, as
well as utilizing the services of your local neighborhood broker. Try
getting different types of quotes from the online direct-sell insurance
companies as well as brokers both on the internet and in the real
world. Bear in mind here that the auto insurance that is cheapest isnt
always going to be the best. For example, is the insurance company
known to you? If not, can you be certain that they are financially
secure? How confident are you that they will be able to pay out if you
have to make an auto insurance claim? Will they still be in business
next year or even next week? In other words, if you dont know the
company, check out their credentials before you give them your money.
Not all auto insurance companies are created equal!

The first
slice of the policy is almost always basic liability insurance,
covering your liability to others in case of an accident which either
injures them or damages their property. Indeed, it is possible to ONLY
have this basic cover and still satisfy the legal requirements in many
states and countries.

However, if you only have minimum liability
coverage and you injure someone, their attorney can go after your
personal assets, so, quite correctly, many people (and their insurers)
would suggest that minimum liability is a bit of a gamble.

Auto
insurance costs will vary dependent on the type of vehicle that you are
insuring. Coverage for a flashy sports car or for one in what is
considered to be in a high risk group (soft top convertibles, for
example) is very different from insuring the family sedan or hatchback.
So, when you are thinking of buying a new car, it makes sense to think
about the auto insurance costs before you do so, and maybe you might
buy a car that "looks good" to insurance companies.

For example,
the auto insurance companies are well aware of what type of cars are
most often stolen. If you haven't purchased your car yet, find out what
cars make this "good list" among auto insurers. Consider how much
coverage you really need to buy, and dont over-insure, because the
companies will not pay out more than the value of your car no matter
how much cover you have been paying for.

For example, consider
collision and comprehensive coverage, how much you will be reimbursed
for the loss or destruction of your vehicle. Are you carrying $50,000
worth of collision coverage for a $20,000 vehicle?

On the other
hand, dont make false economies. If you dont want to pay for
comprehensive and collision cover, consider whether you be able to
afford to replace it if it was written off? If not, then you need the
extra cover, although you clearly dont need the extra cost!

A a
general guide, if your car is worth less than $2,000, then it won't be
worth it to buy comprehensive and collision. L ikewise, if your car is
an ancient relic, say, more than 12 years old, then again, you probably
dont need the most comprehensive cover, which can usually give big
savings. Consider bearing the risk of having a higher deductible (or
excess as it is called in Europe), which is the pat of any claim that
you will have to pay before your insurance policy kicks in and pays the
rest. The higher the deductible, the higher your potential financial
risk, granted, but this will also serve to keep your auto insurance
policy costs down.

Buying a low mileage car and keeping your driving licence and record nice and clean will all help keep cots down.

If
youre a single males under the age of 25 then the bad news is that you
are NOT the auto insurance companies favorite type of driver, and you
will pay for it (statistically, this group are most likely to have
accidents). Get yourself a nice sensible car, and leave the Ferrari at
the dealership until you get yourself a wife and pass your 26th
birthday!

Finally, look a other ways that your insurance company
might reward you for taking steps that will reduce the risk of a claim,
such as fitting your car with an anti-theft device or attending an
advanced driver-training course. These kinds of proactive preventative
measures are generally welcomed by the auto insurance companies, and
are rewarded with reduced insurance fees.

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