CAR INSURANCE: COMPARE, COMPARE, COMPARE
Jul 06 '00 (Updated Aug 06 '00) Write an essay on this topic.
While car insurance is certainly a necessity, careful selection of a policy can make costs a lot less expensive. Beware of the catch-all policies. Many companies will sell you a "package" they will say adequately covers you for all eventualities. Buy only the coverage you need. Careful selection on your part can mean getting the coverage you need at a reduced price. Requirements for coverage vary from state to state. Most states require a certain amount of bodily injury liability, property damage liability and uninsured motorist coverage. Property damage liability insurance is well worth the premium. Get the highest level available since this coverage is necessary and the difference in higher and lower level rates is negligible. Many states also require personal injury or no-fault protection. With personal injury protection, you should get the highest level you can. You save almost nothing by opting for lower coverage. If your car is old or in very poor condition, you may not want comprehensive or collision. Collision is usually optional after you car is paid-off, but is required by lenders until then. This cost can be almost one-third of your total insurance premium so the best way to save is to raise your deductible or drop the coverage if you have an older car. Comprehensive insurance, which covers damage from theft, vandalism, etc. is not required by most states but is required by lenders. If your car is a "thief-magnet", think about this coverage. Uninsured motorist protection makes up the difference when the person you have an accident with does not have enough insurance to cover your damages. Its cost is very low but if your state does not require it, you don't need it. Shopping around can save a lot of cash. Get quotes from several companies. Prices can vary dramatically for the same coverage. Ask for a high deductible or the highest you can afford. A $500 deductible versus a $250 one can mean a $30 difference in your premium payments. Don't forget to shop for discounts. Many companies offer discounts for good drivers, senior citizens, non-smokers, anti-theft devices, etc. You may also get a cut on rates if you have homeowners or other insurance policies with the same company. Another important tool I've found is to asking around. Word-of-mouth recommendations can mean a great deal. Ask friends or co-workers how a certain company performs for them. Is the customer service fast? How are they on settling claims? Are the rates expensive? Don't forget that the internet can be quite helpful in finding the perfect coverage. Many insurance companies offer fast online quotes for automobile coverage. The rule of thumb here is to do as much comparison shopping as possible before making your final choice. NOTE: This article does not have paragraph breaks because this site does not support formatting paragraphs using webtv.
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