Your automobile insurance policy protects more than your car. It is meant to protect you, the other cars and people on the road. Read over your policy when you get it to ensure that it covers what you think it should. The following tips will give you some insight that can help you make the most informed decision on your insurance purchase.
If you are thinking of purchasing aftermarket enhancements for your car, check to find out how much will be covered by your insurance if there is theft or damage. Most insurance companies do not provide coverage for these parts, but they will pay for what the value of your car is with these parts added on.
To save cash when buying auto insurance for a teenage driver, be sure to determine if you will pay less if you get them a separate policy or if you should just add them to the policy that you have. In some cases, it can be less costly to have them on their own policy.
In order to ensure proper coverage, discuss potential vehicle customization with an insurance agent in advance. If you pay $700 for new tires that just add a mere $200 value to your car, you will not be reimbursed for that difference should your car be stolen.
It is required by most state laws that you have sufficient liability insurance as a driver. It is up to you to know what type of insurance is the minimum required by your state. You will break the law and face financial consequences if you have no insurance and get into an accident.
Avoid letting your insurance coverage lapse to help keep your rates lower. You can create gaps in coverage easily by moving from one insurance carrier or policy to another one. An insurance company will raise your rate if they notice these gaps.
You must have the state legal minimums; however, there are many optional protections that are available. Though your premium rates may rise, you may find that these options are worth it. If you get in a hit-and-run accident or one where the other party has no insurance, you will be out of luck unless you have uninsured motorist coverage.
Carpooling or taking the bus are both good ideas. Insurers love when their clients are responsible and they can reward them by lowering their mileage. If you take public transportation, chances are your insurance agent can find a way to discount your policy.
Pay your car insurance all at once or quarterly. If you pay it by month you are paying around five bucks more. This can be expensive over time. If you have tons of other monthly bills, it can quickly become a large burden. Stick to this simple rule: make as few payments as possible.
Use these suggestions to look at your auto insurance policy. If your circumstances have changed, then you are likely paying too much for insurance. Make sure you check out your policy to see what is there.