subject: Basic Information About Car Insurance That You Should Know [print this page] If you were shopping for something like a computer, you would probably know all the basics, so you could comparison shop. You'd know all about hard drive size, memory, screen size, battery life, and anything else that's important to you about getting a good computer at a good price. You certainly wouldn't wander into a computer store, say you needed a computer, and then let the sales clerk pick one for you. Yet that's exactly what most of us do when we shop for car insurance. In reality, it's not that different. You just need to know the elements of a policy, figure out the right mix, and find the best price. The problem is that most of us don't know much about car insurance, so we can't really shop around. But that's going to change, as soon as you finish reading this article.
Not all policies are the same. When people talk about their own individual insurance policies, they usually only talk about price. But the price varies according to the type of policy you have, as well as many other things, such as driving record, age, kind of car, and plenty other things.
To truly understand what to look for, you've got to understand the different policies that are available. For example, you need insurance to cover you in case you crash into somebody, and in case somebody crashes into you. This is collision. You also need insurance to cover any medical costs. This is called comprehensive. These two make up the bulk of most insurance policies.
Also, you can get varying amounts of each type. For example, if you've got a really expensive car, then you might get 100,000 worth of collision. On the other hand, if you have a beat up Toyota Tercel, you might not need as much.
The deductible is how much you have to pay out of pocket before the insurance will pay any claims. The more this is, the lower your premiums are going to be. However, these can get as high as a couple thousand dollars. That means if you get into an accident, and have to make a claim, you are going to need a couple grand in cash.
There are several discounts you can get which will make paying your premiums easier. Safe driver, good student, membership in various organizations, whatever you can find, use it. Check with any particular insurance agent to see what discounts are available.
You might check with your employer, or your credit union to see if there are some groups there that qualify. Don't rely only on your agent to tell you what discounts are available.
So you see, it's not really hard getting a good rate on your auto insurance. You just need to know what goes into a particular policy, and shop around for the best product that meets your needs.
by: Winston Takeda
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