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AUTO INSURANCE
Understanding auto insurance is not an easy task.
Most people know very little about it, only learning
after they were in accident and had to file a claim. Below are some tips that
will help educate about auto insurance, allowing you to get
the best coverage for your needs, without spending too
much money. You will also learn
what to do in case you get into an auto accident.
Buy the right amount of auto insurance liability coverage!
Most people are overly concerned about having a low
deductible. You should however, be more careful about
having a liability coverage that protects you. If you get
into an accident, and have a $1000 deductible, it is not
the end of the world. However, if you are at fault in an
accident, and hurt some very badly, and you don't have a
large amount of liability coverage, you are in big
trouble. The injured parties insurance company will sue
your insurance company for your entire liability
coverage. They will then go after your personal assists
to cover any additional costs.
The bottom line is, talk to your insurance agent to
determine what the right amount of liability coverage is
for you.
Buy the right kind of liability!
Make sure that if you buy a $400,000 liability
coverage that this amount can be used for one person or
two or as many as are involved. Some plans will only offer a certain amount to each
person that is hurt. For example, a $400,000 plan may
only payout $125,000 per person. So, if you are faced
with a $300,000 lawsuit from one person, you are
personally responsible for $275,000 of the suit.
Buy an umbrella policy!
An umbrella policy will protect your home from
lawsuit. This type of insurance usually only costs about
$100 - $300/year and will provide you with $1 million in
coverage in case you cause some serious damage in an
accident.
Consider buying
GAP insurance!
If you are buying a
new car, not having 'gap'
insurance can cost you a great deal of money if your car
in an accident.
Find the right auto insurance agent!
You need to be comfortable with the individual that is
handling your policy. You are trusting that they will
offer you good advice, and get you the right coverage, at
an affordable place. A good way of finding a good agent
is to ask around.
Maintain a good credit history!
Most people do not know that auto insurance companies will
look at your
credit score when determining whether or not
to grant you coverage, and if so, how much. Learn how to
improve your credit score.
**Don't know what your credit score is? Find out by
getting a
copy of your credit report!
**Learn
who else will look at your credit report and why.
Compare plans!
You want to make sure that you are getting the best
price for your auto insurance coverage. Not doing your
homework can result in your paying much more for the same
plan that could have been purchased cheaper elsewhere.
First contact your
state insurance department
or a comprehensive insurance
pricing guideline. Once you have grasped what you can
expect to pay, call some different agents. Each agent
should be able to give you exact numbers of what
different plans cost.
Compare service!
Before deciding on what auto insurance company you are
going to go with, you should visit your local auto body
shops to find out how fast your company settles claims.
Some companies take much longer than others. Also, some
companies may also give a hard time about making the
payment. In addition to asking the body shop, ask friends
and family that have coverage by the same carrier.
Know the claims process!
Before you buy a policy, find out if you are obligated to
use a specific auto body shop in your area when repairs
are being made and/or if you will be required to use
'after' market parts for your car.
Find out about "diminished value"!
Diminished value is defined as the value of your car
after an accident. Before purchasing a policy, find out
if the carrier will pay you the difference from the
diminished value and what your car was valued at before
you got into an accident.
Are discounts offered?
Auto insurance companies offer all sorts of discounts
for different scenarios. For example, you may be entitled
to a discount if you have not gotten into any accident in
'x' amount of years. You may also be entitled to a
discount if you keep your car stored in a garage. The
best thing to do would be to compare all offered
discounts by the different companies you are considering
and determine which one has the most that apply to you.
We also feature a section that will teach you guide you
on
saving money on auto insurance.
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