subject: 6 Must-Know Tips For Auto Insurance Owners6 Must-Know Tips For Auto Insurance Owners [print this page] Getting a good auto insurance policy is highly advised. Not only is it legally required in every province and territory, but it protects you from financial loss due to a collision, theft, natural disaster, and other circumstances. Drivers are therefore advised to spend the required time to fully understand the various offers and coverages. Hidden in the text are several ways to lower your rates, and avoid headaches in the future. So in order to save money, we need to take into account the next several facts.
#1 - Your Car Has A Large Impact On Your Insurance Price
The majority of drivers know this fact to be true. But many presume this influence is primarily "driven" by color and style. In truth, other factors pay a much larger role. For example, certain makes and models are popular targets for car thieves. As a result, they pose a higher risk of loss for insurers, and thus are more costly to insure.
#2 - You May Not Need Expensive Coverage
Car insurance is comprised of several types of coverage. Some, like accident benefits coverage, are mandatory throughout Canada (with notable exceptions in Newfoundland and Labrador). Others, such as collision and comprehensive coverage, are optional. They are also expensive, which means you should carefully review whether they are necessary given your needs.
Collision coverage protects you from financial loss in the event your vehicle is damaged due to an accident. Comprehensive covers losses that result from non-accident events. These can include natural disasters, vandalism, and theft. If your car is new, these coverages are valuable. If, however, your vehicle is old and worth very little, collision and comprehensive may make little sense. Dropping both may significantly reduce your premiums.
#3 - You Might Qualify For Rate-Lowering Discounts
Car insurance companies extend a number of discounts to their customers. To be eligible for them, you need to meet specific criteria. For example, is your driving record free of traffic violations and accidents? If so, you may qualify for a "good driver" discount. Have you taken driver education courses, installed an alarm system in your car, or are you a retiree? These, too, might make you eligible for a reduction in your rates. Contact your insurance broker or insurer to check whether you're entitled to these and other discounts.
#4 - Your Personal Belongings Are Not Covered
If your vehicle is stolen with your personal belongings inside, these items will not be covered by your auto insurance policy. Clothes, golf clubs, laptop, PDAs, and other property are your responsibility. This is the reason many experts suggest buying a property insurance plan. Your auto policy will cover your car (if it is stolen) while your property insurance policy will cover personal items left inside.
Many people assume property insurance is only for homeowners. In reality, it provides coverage for anyone who owns property they value.
#5 - You Can Probably Afford A Higher Deductible
The deductible on your insurance policy represents the amount you are required to pay before your insurer pays the remaining cost. For example, suppose a collision results in $2,000 of damage to your car. If your deductible is $250, you'll need to pay $250 before your insurer covers the remaining $1,750.
Most people carry deductibles that are too low. They do so to minimize the amount they'll need to pay out of pocket when they file a claim. The problem here is twofold. First, the odds of being involved in a collision are small. Second, you are "paying" for the low deductible each year through higher premiums. There's a good chance you'll pay more in higher rates than you'll save with a low deductible by the time you finally file a claim.
Raise the amount. Given the small likelihood of an accident, most people will save money by doing so.
#6 - Car Insurance Rates Vary By Insurer
This is the aspect of auto insurance that most surprises consumers. There is a pervasive assumption that rates are similar from company to company. In reality, they vary - sometimes dramatically. When you're searching for an affordable policy that offers the coverage you need, compare quotes from multiple insurers. You'll discover there is often a significant difference between the lowest and highest quotes. For the savvy shopper, this is an opportunity to save money.
Few people enjoy thinking about their car insurance coverage; most simply pay their premiums, and hope they will never need it. But it pays to know the above details since they can help you find low-priced coverage that meets your needs.
6 Must-Know Tips For Auto Insurance Owners6 Must-Know Tips For Auto Insurance Owners
By: Kade Phillips
welcome to Insurances.net (https://www.insurances.net)
