Auto insurance packages aren’t a one-size-fits-all solution. What works for one motorist won’t work for another. Salary, credit history, geographical location and the make and model of your vehicle all play a role in determining your auto insurance premium rates.
Before you make an auto insurance quote comparison, you need to understand what it is you’ll be looking for in an insurance policy. Some questions to ask yourself might include: What are my state’s insurance laws? Can I bundle my homeowners and auto insurance policies? Can I cancel my existing insurance contract? Is going with the minimum amount of auto insurance advisable? Once you have your answers, you can make an informed decision about the quotes you receive.
Let’s take a look at the auto insurance rundown.
Full coverage auto insurance sounds like the supreme insurance package, doesn’t it? It’s just that “Full Coverage” auto insurance doesn’t actually exist. According to the Department of Motor Vehicles (DMV), full coverage is a blanket term used to refer to the grouping of comprehensive and collision coverage plans. Because insurance terms like these can be a little misleading to the green motorist, it’s necessary to know what your state’s insurance carrying laws are.
Most states in the U.S. require licensed drivers to carry some form of auto liability insurance.Other plans you can include in your insurance package are:
Each plan of course comes with its own list of pros and cons. One policy covers your vehicle’s cosmetic damages, another does not. One insurance package pays for the damages sustained to another driver’s vehicle and person, but does not cover your own vehicle or injuries.
Auto liability insurance – an insurance plan the majority of states require you to carry by law – is definitely the most cost effective. However, it does not cover your property or your person in the event of an accident you’ve caused. Instead, it covers the other motorist in the accident.
Many Americans choose to have an auto liability policy because it is the most affordable. But when you know what type of discounts to ask for, which add-ons will protect you and how much to raise your deductible, you can get a car insurance package that protects you and other drivers on the road.
There are many discounts to be had as an auto insurance policy holder. These include:
Having anti-lock breaks, passive restraint systems, blind spot detection, a tire-pressure monitoring system, anti-theft systems, emergency response systems, or daytime running lights can give you a discount. All you have to do is ask your insurance agent.
Maybe comprehensive coverage is still above your budget, but you still would like to
have more protection on top of your liability insurance. There are specialties you can
add-on to your existing insurance policy. These include:
First, a quick definition of a deductible: the amount of money that must be paid out of pocket by the insured before the insurer will pay for any of the incurring expenses after an auto collision.
When you raise your deductible, let’s say from $100 to $200, that dollar amount will be deducted from your claim. The less money you claim from your insurance, the more affordable your premium. Insurance agencies determine your risk factor from a number of different things, including your age, gender and geographical location. They also look at your claims history. If you've made several claims, you’ll be determined as high risk, which ups your premium payments. Raising your deductible will ensure that your insurance premium stays at an affordable amount.
To get the best insurance deals, check out our auto insurance quote comparison guide at CoverHound today. Click here to get started!
Insurance shopping simplified
Insurance shopping simplified