Cheap Car Insurance Fact Checklist

Tuesday, February 6, 2018

Everything You Need To Know About Car Insurance

 

The best part about getting a new car is that new car smell.

The feeling of accomplishment that you now own your dream car even.

Or perhaps the best part about that new car is the screaming deal you got.

Most people don’t think about the added expenses of a car, just the price tag.

But after maintenance and car insurance, you are left with a yearly bill that can really add up.

Cheap car insurance isn’t always easy to find for a brand new car.

Most of the time, banks will make you attain the full coverage for car insurance.

Depending on what car you purchase, this could add up to hundreds more than you originally thought.

The great thing about a new car is the excitement you feel when driving it.

But you also want to feel the protection while driving.

You can truly only accomplish this when you have full coverage.

If you want to save on your car insurance, buy used. Purchase an older car with a low value.

That way, if you get into an accident and it’s totaled, you won’r be any worse for ware.

With a new car, you could be out thousands of dollars if you don’t have the proper coverage.

The right amount if cheap car insurance coverage could be the difference of draining your savings account.

Let’s talk about how you can avoid this and how insurance can be your friend, not your enemy.

 

What Are The Basics Of Car Insurance?

 

First of all, to own and operate a vehicle in any state, you must have the minimum amount of car insurance.

Car insurance is put in place so that other drivers on the road are protected if you crash into them.

If you get into an accident and are at fault, the minimum amount of coverage will make sure that those other drivers and cars are paid for.

Because after all it was your fault.

On the other hand, if you get into an accident and it was someone else’s fault, or you are at equal fault, the minimum coverage will not cover your own expenses and you will be left to pay out of pocket.

This might sound harsh, but the reality is that almost 20% of all drivers do not carry insurance.

This is of course against the law, but it happens anyway.

So you have a small chance that when you are in an accident, the other person won’t pay.

Sometimes people even flee from the scene and without their license plate number, you can never track them down.

Minimum coverage is necessary but not perfect.

What is the minimum car insurance coverage?

 

Insurance is different in every state, but for the most part you will need to have liability and property damage coverage.

Here is an example:

There is a minimum amount of insurance that you must have in California:

  • Bodily Injury Liability Limits: $30,000 per occurrence/ $15,000 per person.
  • Bodily Injury Liability Coverage will pay the injured party if you are at fault in an accident. It may also cover legal fee’s or loss of wages.
  • Property Damage Liability Limits: $5,000 per occurrence
  • Property Damage coverage is coverage for any type of damage to a vehicle such as broken windows or dents.
  • Liability Coverage is a type of coverage that pays someone that you have injured or property you have damaged which is declared your fault.

This is also the case with most states. Liability will cover another parties fees for damages and bodily injury.

This is serious, because if you injure or kill someone in an accident, you will want to have insurance. If you flee the scene, you are talking about jail time.

 

What Do I Need?

 

The best thing to do when shopping for a car is to look at what insurance you need.

  • With no car payment, you are eligible for just the minimum insurance. But depending on the value of your own car, you could be at risk. For instance, if your car is worth ten thousand dollars and you get into an accident that is your fault, your minimum coverage will not cover the costs to repair your car. If it is totaled, do you have ten thousand dollars to cover it?
  • To play it safe, only attain the absolute minimum coverage when you own a car that is worth $4,000 or less.
  • This way, if it is totaled, you won’t be out as much money and can either slowly rebuild your car, or go out and buy another one. Other wise you will want to have Collision coverage on your cheap insurance policy.

 

What Is Full Car Insurance Coverage?

 

First of all full coverage can vary.

But for most people full coverage is adding Collision coverage and Comprehensive coverage to your existing policy.

Most banks make it mandatory for you to have full coverage when securing a loan for your car.

This means not only making sure that your car is covered for things like collisions and theft, but Uninsured Motorists as well.

Collision is the most popular addition to a plan. This will cover damages to your own car and self if you are in an accident.

Comprehensive coverage is set in place to cover theft and also minor damages to your car.

  • An Accident is any unintended event that causes loss to property or life. This is the definition of an accident for consumers to know when purchasing car insurance.

 

Here are other options for your car insurance coverage:

 

  • Medical coverage for you and your passengers- Medical coverage can make a huge difference for your security and safety.
  • Towing and roadside assistance- You may not only need this for a crash, but if you break down. Roadside assistance can save you time and money.
  • Rental reimbursement- You could be covered or reimbursed for a rental car when you are involved in a crash.
  • Uninsured Motorist coverage- this will make sure that you are still covered even if someone without insurance hits you.
  • Full glass coverage- this is additional coverage for your car to cover glass windows and doors.
  • Loan/lease coverage- when you have a loan or a lease out on a vehicle, your coverage needs to be different. Most of the time a full policy is required.

You can add on any of these coverages and they all have different limits. You can purchase $30,000 of medical coverage for you and your family. That covers the costs of anyone who needs to be hospitalized on top of what your health insurance might cover.

  • When you are shopping for car insurance, you will want to know exactly what is in your policy. Always review your policy. Make sure it has all of the insurance you want. Read through your documents and make notes of anything you may not understand or need changed.


Where Can I Get Cheap Car Insurance?

 

The best thing to do when you are looking for car insurance and you want to stay within a budget is to talk to a broker.

  • A broker is someone who works for the consumer to find the best insurance company to work with. They bring together the buyer and the agent so that a cohesive partnership can be made. The broker listens to the consumer and tries to stay within their budget. The broker can give multiple policy options and companies for the consumer to choose from. Because the broker has access to hundreds of agencies, they have the ability to find an insurance policy very quickly.

After you have talked to a broker, you can figure out what sort of insurance company you might want. Do you want your insurance company to have 24 hour customer service? Or is this not important to you? Would you like the most possible amount of discounts available, or is it better to have a reputable company working for you? These are all things you can thing about when working with a broker.

There are hundreds of insurance companies in the United States. Each one works a little differently. Some are known for their great pricing, while others have been around since the early 1900’s and are very reliable. Some insurance companies you won’t be able to bundle policies and others you can.

 

Here are some terms to better help you understand insurance:

 

  • An agent is a person who sells insurance and must be licensed to do so. Our agents are licensed and trained to help you receive the highest discounts.
  • Adjuster: Person who evaluates claims for the insurance company and determines loss on claims.

 

  • Bodily Injury Liability Coverage will pay the injured party if you are at fault in an accident. It may also cover legal fee’s or loss of wages.
  • Bundling is coverage that includes multiple policies such as auto and homeowners insurance that are combined to save the consumer on premium costs.
  • Claim- a claim is a request to the insurance agency for compensation due to covered loss.
  • Defensive driving courses area a great way to keep your costs low. This is a class where you can improve your driving and may prevent a citation on your record.
  • SR22 Insurance policy is a kind of insurance that you need when you have had a DUI. Cheap Insurance can help you attain this sort of policy as well.
  • Roadside Assistance Coverage is additional coverage which provides assistance such as towing, battery jumpstart and emergency key replacement services.
  • Carrier: Another name for the insurance company.
  • Casualty Insurance: Coverage for a person who is killed or injured in an accident.
  • Compulsory Auto Insurance: The state required basic minimum liability coverage which is legally required in most states. Severe penalties can be given if you are caught driving without insurance.

 

 

 

How Much Will Cheap Car Insurance Cost Me?

 

Car insurance can vary depending on the type of car you have. If you have a 4 cylinder engine on an older model car that you have the title to, it will be much cheaper than a brand new Mercedes. Usually the bigger the engine and the newer the car, the more expensive the insurance. To lease a vehicle, you need to have full coverage, so this is an added cost as well. You are at the mercy of the banks when you have a loan out on your vehicle. But let’s face it, most of American’s have a loan out on that new car! It is very difficult to purchase a car outright when they cost 30 thousand dollars!

 

You can always ask for discounts.

This is one way most people choose to save on their car insurance policies.

 

Here are a list of discounts you could ask for:

 

  • Discounts for safety courses taken- taking a safety course can help your premiums go down because it proves that you are a safe driver.
  • Marital discounts
  • Good driver discounts- having a driving record which shows safe driving and responsible skills will only help you when shopping for insurance.
  • Multi-car discounts- Not only having multiple cars can help, but the types of cars your family drives could save you.
  • Multi-policy discounts- You may want to consider getting homeowners insurance, motorcycle insurance, car insurance, SR22 insurance and much more from the same insurance company.
  • Association discounts
  • Education discounts
  • Occupation discounts- Depending on what kind of job you have and how far you need to commute for that job could make a difference in your policy choice and price.
  • Excess vehicle discounts
  • Mileage discounts- Keeping low miles on your vehicle should keep your premiums lower.

 

Another way to keep your monthly premium lower is to raise your deductible.

This means that you won’t pay your deductible until you are in an accident and need your damages repaired.

However, the deductible could be more this way.

What is a deductible exactly?

  • A deductible is an agreed upon dollar amount in which you “share the risk” with your insurance company if your vehicle is damaged. For example, if your vehicle is worth $10,000 and your deductible is $500, in the event of a total loss, your insurance company will pay up to $9,500 (after your deductible is paid).

 

Last but not least, know what your insurance company is all about.

Do some research and know if they cover original manufactured parts or if they have a 24 hour claims service.

These are important things to know when searching for the right company.

If you work with a broker, ask them questions. As many as you want because that is what they are there for.

Know the type of car you have or are thinking of purchasing. Some cars just cost more money to insure no matter what agency you go to.

And just know that there are laws and loop holes that every agent and broker must work around. Try to be flexible.

Doing your part by keeping a clean driving record will only benefit you. Every year that you have a clean record, your insurance premium should drop.

Cheap car insurance isn’t hard to come by, but getting the best quality insurance sometimes is.

Do you homework and make your own checklist.

Insurance is your biggest ally when it comes to your car.

email

« Return to Blog