Shopping for car insurance is not really something consumers appreciate, but regardless it’s required in order to satisfy compulsory insurance requirements.
Consumers need to have an understanding of the rating factors that help determine the price you pay for insurance. When you know what positively or negatively controls the rates you pay empowers consumers to make smart changes that could result in much lower annual insurance costs.
The following are a few of the “ingredients” used by your company to calculate premiums.
Properly insuring your vehicles can get expensive, but you can get discounts to cut the cost considerably. A few discounts will automatically apply when you complete an application, but a few need to be specifically requested in order for you to get them.
As a disclaimer on discounts, many deductions do not apply to all coverage premiums. Most cut the price of certain insurance coverages like comprehensive or collision. Even though it may seem like you could get a free insurance coverage policy, it doesn’t quite work that way. But all discounts will reduce the cost of coverage.
Car insurance companies that may offer these money-saving discounts may include but are not limited to:
It’s a good idea to ask each company which discounts they offer. Savings might not be offered in your area.
When it comes to buying proper insurance coverage for your vehicles, there really is no cookie cutter policy. Each situation is unique.
These are some specific questions could help you determine if your situation will benefit from professional help.
If it’s difficult to answer those questions, you may need to chat with an insurance agent. If you want to speak to an agent in your area, complete this form.
Learning about specific coverages of your auto insurance policy can be of help when determining the best coverages and the correct deductibles and limits. Auto insurance terms can be difficult to understand and reading a policy is terribly boring.
Uninsured and underinsured coverage – This provides protection from other motorists when they either are underinsured or have no liability coverage at all. Covered claims include hospital bills for your injuries as well as your vehicle’s damage.
Since many drivers carry very low liability coverage limits, it doesn’t take a major accident to exceed their coverage limits. This is the reason having UM/UIM coverage is important protection for you and your family. Frequently these limits are identical to your policy’s liability coverage.
Liability auto insurance – Liability insurance will cover injuries or damage you cause to people or other property by causing an accident. It protects YOU from claims by other people, and doesn’t cover damage sustained by your vehicle in an accident.
Split limit liability has three limits of coverage: per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have limits of 100/300/100 which stand for $100,000 in coverage for each person’s injuries, a total of $300,000 of bodily injury coverage per accident, and property damage coverage for $100,000. Some companies may use one number which is a combined single limit which combines the three limits into one amount rather than limiting it on a per person basis.
Liability coverage pays for claims such as repair costs for stationary objects, structural damage, court costs, loss of income and pain and suffering. How much liability coverage do you need? That is up to you, but it’s cheap coverage so purchase as high a limit as you can afford.
Comprehensive coverages – Comprehensive insurance coverage pays to fix your vehicle from damage OTHER than collision with another vehicle or object. You first have to pay a deductible and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive insurance covers things such as fire damage, damage from getting keyed, damage from a tornado or hurricane and hitting a deer. The maximum amount you’ll receive from a claim is the actual cash value, so if your deductible is as high as the vehicle’s value it’s not worth carrying full coverage.
Coverage for medical payments – Medical payments and Personal Injury Protection insurance provide coverage for immediate expenses for chiropractic care, doctor visits and X-ray expenses. They are often utilized in addition to your health insurance program or if you are not covered by health insurance. Coverage applies to both the driver and occupants and also covers any family member struck as a pedestrian. PIP is not universally available and gives slightly broader coverage than med pay
Collision coverage – Collision insurance pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. You first must pay a deductible and then insurance will cover the remainder.
Collision coverage pays for things such as crashing into a building, damaging your car on a curb and colliding with a tree. This coverage can be expensive, so consider dropping it from vehicles that are 8 years or older. Another option is to choose a higher deductible to bring the cost down.
As you prepare to switch companies, it’s very important that you do not buy less coverage just to save a little money. In many cases, someone sacrificed uninsured motorist or liability limits and found out when filing a claim that their decision to reduce coverage ended up costing them more. Your aim should be to find the BEST coverage at a price you can afford while still protecting your assets.
We just presented some good ideas how you can lower your 2013 Honda Accord insurance rates. It’s most important to understand that the more rate comparisons you have, the better chance you’ll have of finding lower rates. You may even discover the best price on insurance is with the least-expected company.
Drivers leave their current company for any number of reasons including denial of a claim, extreme rates for teen drivers, high prices and delays in responding to claim requests. Regardless of your reason, finding a great new company can be easy and end up saving you some money.
Much more information about insurance can be read at the links below