subject: 6 Questions That Can Help You Save Money On Auto Insurance [print this page] Einstein once said The important thing is not to stop questioning. Curiosity has its own reason for existing. It turns out that he was right. In every area of your life, the more questions you ask, the more youll learn about the world and the way it works and subsequently, the greater your chances for success. This idea works for auto insurance too; the more you know about your policy and coverage, the higher your chances of saving money. Today we will discuss five of the most important questions regarding your car insurance coverage.
Will I save money by switching providers?
This is a common dilemma. On one hand, staying with the same company can get you a loyalty discount and make you eligible for discounts and benefits such as a Disappearing Deductible. On the other hand, another company may give you a discount for joining them and offer you dirt cheap auto insurance quotes, which might just turn out to be a far better deal. Make auto insurance quotes comparison every couple of years, weigh your options and make a call. Bear in mind that cheap quotes mean nothing if you switch to an unreliable, incompetent company. Make sure to factor in the reliability and reputation of each company while making a decision.
Am I carrying too much or too little coverage?
If you only purchase the state mandated minimum coverage, you will have to foot any damages to your car as well as medical bills. Thorough insurance coverage would compensate you for a car, medical expenses, a rental, possibly loss of wages and in some cases, for psychological/emotional distress. However, there are certain cases in which getting anything above PIP and liability may not be worth it. A good rule of thumb is that if you can afford to replace your car, there is no need for collision or comprehensive coverage.
Am I eligible for any discounts?
This one is very important since your insurance provider may not volunteer this information themselves. Car insurance companies offer a variety of discounts ranging from good student discounts, defensive drivers credit, air bag and safety device installation discount, good driver discount, senior citizen discountsthe list is endless. Ask and you shall receive. If youre eligible, that is.
Should I file a claim or foot the bill myself?
It may seem very tempting to file a claim for any and all damages to your vehicle; after all this is why you dish out for premiums every single month. However, keep in mind that doing so may not always be a good idea. Filing claims tends to raise your insurance rates. If your damages are worth a $1000 and your deductible is $500, the extra $500 you receive from the insurance provider may not be worth the hike in premiums. So in order to get the best car insurance quotes, avoid making claims as far as possible.
Should I raise my deductible?
The higher your deductible, the lower your premiums and vice-a versa. So if you want a drop in your premiums you should definitely consider raising your deductible. However, please remember that you will actually have to pay this deductible if you make a claim so make sure that the amount is one you can afford. A good strategy is to keep that amount aside for a day you may file a claim and forget about it. Dont touch it, no matter how tight your finances get.
What does my policy exclude?
This is a very important question to ask. Sit down and talk to your auto insurance provider about the limitations and exclusions of your policy. For example, your insurance company may exclude earthquake damage if you live in Florida and if you are not aware of this, you could be in for a nasty shock if you make a claim for the same. Once you know the limitations and exclusions of your policy, you can take remedial measures, such as getting earthquake insurance in the above case.
The first rule is that you must read your policy thoroughly no matter how tedious it is; doing so will answer most of your questions. But if you have any remaining doubts, dont hesitate to ask your provider. Remember knowledge is power.
by: Bethany Collins
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