A Car accident can happen to even the most experienced drivers and having sufficient auto insurance cover is crucial. Whether you are new to the road or have many years of experience, in most states car insurance is required by law.
Don’t fall into the trap of automatically renewing your insurance without shopping around. It is a good idea to get other quotations, and if you do find cheaper cover with the same benefits, you can go back to your current provider to see if they can match it or offer you further discount.
What are the different types of car insurance?
- Liability coverage. Required in most US states as a legal requirement to drive a car.
- Collision insurance.
- Comprehensive insurance.
- Uninsured motorist insurance.
- Medical payments coverage.
- Personal injury protection insurance.
- Gap insurance.
What You Should Be Looking For:
Choose The Right Cover For You And Your Vehicle
Make sure the cover meets your requirements, for example, if you own an expensive or luxury vehicle, the cost of repairs or replacement will be higher so in turn you will need higher cover. If you are a high mileage driver, you will need more cover than somebody who uses their vehicle drive to the shops and back.
Major road accidents/collisions
It is always important to be prepared for the potential worst-case scenario, including the possibility of a full car replacement. If you are involved in an accident which was not your fault, the other driver’s insurance will be used to pay for the repairs or a replacement vehicle. If your claim is as a result of a natural disaster, or the accident was your fault, then you will be wholly responsible for all repairs or replacement of your vehicle, and for reasons like this it’s important to have a decent amount of cover.
Personal Injury And Personal Liability Cover
Personal injury protection will cover healthcare expenses should you be injured as the result of a car accident for both the injured policyholders and passengers. It will give you peace of mind that you and your family will be looked after if you need to make a claim.
Uninsured Driver Protection
Although required by law, many people choose to drive without auto insurance as they simply can’t afford it and are willing to take the risk hoping they won’t be involved in an accident. If you take out uninsured driver’s insurance, you will be insured should this situation arise.
Car Breakdown Cover
You can choose to add car breakdown cover to your auto insurance policy. Make sure that you check whether it will be more cost effective to add to your policy or to purchase separate breakdown cover.
Towing coverage
Many people believe that towing and rental coverage isn’t included in their insurance, however these are in fact included within many packages. This can work out much more cost effective than an additional annual towing club membership on top of insurance
Money Saving Tips:
- Careful driving will result in a lower premium – an insurance company will check if you have made claims in the past - you will be rewarded if you haven’t made a claim.
- Larger cars cost more to insure - the size of the vehicle will affect the cost of your insurance, smaller cars are typically less expensive than larger sedans or an SUV.
- Increase your excess to lower the cost of the policy.
- Paying all at once instead of in instalments should reduce the cost of your policy.
- Enhance your security as this will be taken into account.
- Be accurate with your mileage, don’t over or under-estimate it.
- Look at how you use your car and don’t over or under insurance.