If you drive a car then auto insurance is essential. However, the majority of drivers don’t pay enough attention to their policies, which means they could be overpaying for their insurance.
Want to save more money on your auto insurance? Then you need to read theses 5 little known facts, as they could save you a bundle when it comes time to renew your policy.
In the majority of states liability coverage is mandatory, however the minimum limits does vary depending on where you live.
In order to make sure you are abiding by the law in your state, you should check to see what the minimum coverage is, so you can avoid fines or a suspension.
Auto insurance in California isn’t cheap, and it’s a legal necessity, so there isn’t any option of not choosing any. However, you will be grateful to know that there are things you can do to ensure that you’re obtaining the lowest price possible in your car insurance.
First, let’s consider the actual minimum requirements with regards to auto insurance in California. Motorists are required to obtain car insurance to make certain that their car is being legal on the roads. Liability insurance coverage, which sets you free of every financial responsibility that may incur due to any injury or damage due to car accident (no matter who’s responsible), is essential.
Law also states that you must always carry evidence of insurance with you inside your vehicle all the time.
Now that we have the legal details taken care of, let’s talk about getting the most feasible deal in your car insurance!
Here are 4 things that you should keep in mind
1.Don’t choose the very first quote that you are offered
It might be attractive to go with the very first car insurance quotation you get, but it’s one of the greatest mistakes you may ever make when trying to obtain inexpensive auto insurance. It is crucial that you shop around as well as compare quotes from the variety of car insurance companies to be able to ensure that you get the lowest possible price. Continue reading
Every insurance company will provide a limitation to the maximum amount involved in liability coverage. This is often referred to as auto insurance limit. Under this, the amount that the insurance company will be offering for the damages will be limited.
Every state has its own requirement and limitation when it comes to liability insurance. However, the minimum coverage policy is often far less than required. For example, $30,000 is required for injury liability coverage and $10,000 for property liability coverage in Florida State. If an individual is involved in an accident, the minimum coverage amount as mentioned for Florida State will be very less to meet the expenses for damage of the vehicle and even for medical treatment.
Due to this implementation, people often look out for liability insurances that are significantly more than the required amount as stated for a state.
More: Temporary Car Insurance for Under 21
Car insurance with high limit
Limitation of the auto insurance will vary from one company to another. Majority of the policies have a limitation between $300,000 and $500,000. When there is an increase in limitation for auto insurance, the premium paid for a month will drastically increase. However, the higher value of auto insurance will provide complete protection when there is damage to the property or injuries to people involved in an accident.
State legislators created low-cost auto insurance program in order to offer auto insurance policies at reduced prices. The program is aimed at reducing the total number of drivers who are uninsured.
The program was launched in the year 2000 as a pilot operation. It covered Los Angeles and San Francisco County drivers. The low-cost policies began its sales in the year 2007 and covered the entire state.
According to estimation, 24 million drivers are insured through the program. The policy is provided to individuals who earn $50,000 per annum containing four family members. According to the program, auto insurance providers will provide liability insurance at the rate of $350 per year in Los Angeles and $290 per year in San Francisco. However, the price will depend upon the driving skills and driving record of the motorist.
Usually, a driver will carry minimum injury liability coverage of $15,000, accident liability coverage of $30,000 and damage liability coverage of $5,000. However, in order to provide liability insurance at lower cost, the legislature has reduced the prices to $10,000, $20,000 and $3,000 respectively.
The collision insurance provides protection to a vehicle which is damaged in an accident. Liability insurance is different from collision insurance. Liability insurance deals with the cost of damages that you may cause to others when involved in an accident.
It is important for an individual to have auto insurance. However, there is no legal requirement that one should also possess collision insurance. When a person is registering a vehicle or applying for a driver’s license, he or she have to prove that they are in a position to reimburse the amount for damages or injuries caused in an accident.
Collision insurance is only required when an individual purchases a vehicle using auto loan. This is because the lender would like to protect the interest of the vehicle in an event of accident. The car purchased in this procedure acts as collateral for the loan. Continue reading
Seven smart tips for buying car insurance
A fatal accident has shattered the dreams of Bradley Dreyer. The accident has resulted in severe brain injury. Badly wanted to become ER nurse and studying the necessary course to fulfill the criteria. He was hit by an uninsured motorcyclist who crossed the double yellow line. He would have turned 21, after 10 days from the date of accident which took place the last year.
Bradley’s patents along with insurer, State farm, were able to pay out $100,000 has uninsured motorist coverage from the auto insurance policy. The remaining $1million is covered using umbrella policy. However, given the condition of Bradley, their parents wished they could have insured for a higher amount. Mary Kate Dreyer, mother of Bradley wished they could have invested good amount of money towards insurance. It has become important for them to protect the estate for future needs. Bradley is entitled for lifetime care.
There are many bees available through which one can easily cut down the total number of premiums paid for a policy. Axing down collision insurance, rising deductible amount, consolidating policy with another insurer and demanding special discounts are a few of the ways through which one can reduce the total number of premiums for a policy. However, there is a possibility that you will pay more amount of money towards protection from uninsured drivers. Continue reading