Car insurance basics
Car insurance may seem like a complicated topic, but it's not if you spend some time to learn the basics of this type of insurance. There's nothing complicated about it but make sure to learn these things before you do any car insurance shopping. Many drivers make the mistake of purchasing the first policy they are offered by their car dealers or insurance agents. And as a result many people end up overpaying for things they need or sticking to a provider that doesn't offer competitive rates. In order to avoid this here are the essentials you need to know:
Car insurance consists of different coverage types
All of you know that car insurance is mandatory in the US. But it doesn't refer to car insurance in general, only to a part of policies know as third party liability insurance. All car insurance policies consist of different coverage types that may carry different coverage amounts. And all coverage outside of third party liability is optional, meaning that you can choose to not include it in your policy. The more coverage types and amounts you have, the costlier is your policy. So it's recommended to sit down, asses what types of coverage you really need and include only them in your policy.
Deductibles affect your rates
A deductible is the amount of money you have to pay from own pocket before the coverage kicks in. The higher is this amount, the lower are the rates. Typically, the deductibles are set to $100 or $250 and not many drivers know that they can actually adjust them. By increasing your deductible up to $500 you'll get about 10-15% of your premium.
The car you drive really makes a difference
The type, exact make and model of your car really matter when it comes to car insurance rates. If you're trying to insure a sports car, muscle car, vintage vehicle, luxury auto or a large truck or SUV, prepare to pay up because these types of vehicles usually have the highest rates. On the other hand, small and medium sized car of the middle price segment are usually less expensive to insure. So keep this in mind when looking for car insurance.
Comparison shopping is a must
Car insurance rates differ from company to company so it's always a must to spend some time shopping around. You may get different rates for the same car from two insurance providers working in your area. So make sure to exploit this feature to own benefit and shop around for car insurance. You may save a lot of money as a result.