Know Your Coverage
Bodily injury liability covers injury, death, and legal costs in case someone else is hurt or killed by your car. Property damage liability covers any damage or property caused by your vehicle. Medical payments coverage pays in case you or your passengers are hurt. Uninsured motorist covers injuries to you or your passengers in case the car and driver that hit you wasn’t insured or doesn’t have enough insurance. Collision coverage pays up to your car’s book value, and comprehensive coverage protects against theft, vandalism, and natural calamities.
Your Car Affects Your Premium
If your car is expensive, expensive to repair, popular with thieves, or considered unsafe, your premiums go up. If your car has good safety ratings, is a model that’s not usually involved in accidents or stolen, and cheap to replace or repair, your insurance rates come down.
You Affect Your Premium
Your age, gender, and driving record are key factors that affect your insurance. If you live in an area where crime rates are high, accidents occur often, population density is high, and traffic is heavy, then your rate goes up. Your premium also gets hiked if you commute long distances or have a poor credit score.
You Can Decide Your Coverage Level
Being underinsured is dangerous. But being over-insured is expensive. Ideally, you need a liability cover of $100,000, an accident cover of $300,000, and a property cover of $50,000. The more assets you have, the higher your insurance coverage needs to be.
You Can Reduce Your Premiums
You could buy a vehicle that qualifies for an insurance discount. Ask your agent about the vehicles that cost the least to insure before you buy a car. Companies also offer breaks to those that drive fewer than 7.500 miles per year, carpool, or use public transportation. Enquire and take all the discounts you qualify for. You can get breaks if your vehicle has an alarm, airbags, enhanced safety features, if you have passed a defensive driving course, or if you buy auto, life and homeowners insurance from the same company. You can also reduce your premiums by up to 40% by increasing your deductible to $1000. You should also shop around for better rates instead of just renewing with the same insurance company.
