Car insurance is necessary for any person who drives a car. It is of utmost importance as well as a necessity by law, to insure a vehicle before riding it. The world has been witnessing a huge increase in the number of people riding vehicles, especially cars and motorbikes over the past decade.
When you buy an insurance, you are actually buying a policy.
The cost of car insurance is affected by a number of things including the type of car, your age, driving record, the city you reside in and the usage of your car. It is important to understand the basics of car insurance, which would make you to trust the policy you choose that will take care of your needs in case of an accident. Let’s take a look into what car insurance is all about:
COVERAGE TYPES
First of all, you should know the laws in your state before choosing the insurance. This would help you in deciding which you need for the vehicle.
Liability- It pays for injury damages , which includes medical expenses, as well as lost wages and property damage.
Collision- It pays for car damages caused by collision with an object or another vehicle.
Comprehensive- it pays for damage/loss to insured vehicle that does not occur by accident but other reasons such as loss by fire, wind, theft.
Personal Injury Protection(PIP) here medical expenses is paid for the insured driver in spite of who is at fault.
Uninsured motorist-It pays for damages in the car caused by a driver who does not have liability insurance.
KNOW YOUR CAR INSURANCE NEEDS
Consider the following guidelines to better determine the insurance needs
Your options- A number of options are available, but take only what you mostly liked which make you sure that you are safe.
The money you want to spend- take different types of coverages in one policy, which would make you feel confident and help you to provide for financial losses in the event of an accident.
Your other insurance- There are other types of insurance such as health insurance that may pay for accidental damages to the car
Deductibles- It is a part of the policy where you are responsible to pay for some damages, and the amount depends on the policy. So, the choice of deductible is an important thing while selecting the policy. Remember if the deductible is higher, lower would be the cost of your insurance.
WAYS TO CUT DOWN THE INSURANCE PRICE
Purchase the car that is in good list among insurance companies.
Check the discounts that are offered by the insurance companies.
Reduce the usage of your car.
Fix a security system in your car.
Drive safe.
Lastly, there are numerous car insurance companies both online and offline that offer you tempting car insurance deals. However it is of extreme importance that you compare different policies, their rates and know about the companies before you choose one.
This guest post is written by Greg Fowler on behalf of AutoInsureSavings
