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Everything You Need to Know About Car Insurance Companies

Everything You Need to Know About Car Insurance Companies

Obviously you don’t want to spend thousands of dollars on vehicle repairs, property repairs or medical costs in the event of an accident. Hence most people prefer to buy an insurance policy from an insurance company and they pay annual premiums and if they have an accident, they claim the insurance company to cover their financial losses that occurred because of the accident. Looking in a good deal on auto insurance is all about finding a good and balanced coverage and rates that will fit your budget and cover your financial losses. We took a look at everything you need to know about the car insurance companies which will give you a good idea and information before selecting your car insurance company. Read the article thoroughly to know more.

Everything You Need to Know About Car Insurance Companies

Whether you have just bought a new car or you are going to buy one and you want to get insurance for your car meanwhile you are not sure and have no idea about how car insurance companies work – car insurance policy can be hard to understand. It’s important to know what kinds of coverage do you need? What is required and what is optional and what is deductible and how much will it cost.

If you know about this all stuff, you could save honestly by not paying for coverage that doesn’t suit your lifestyle and this way you can save your money too. Initially, we will start with the basic types of insurance you can get and what do they do for you, your car and the passengers involved in an accident.

Types of Car Insurance

Basically there are three types of insurance:

  • Liability
  • Comprehensive
  • Collision

1. Liability Insurance

Liability insurance covers any bodily injury or property damage when you have an accident that is your fault. In other words, if you were to hit somebody, your insurance would cover the cost of the repairs to that car or if you caused any harm to the person like physical injury the liability insurance has to pay for the expenses of the damages.

2. Comprehensive Insurance

Comprehensive insurance covers any kind of repairs to your car that did not result from a collision. Let’s say your car got broken into, a tree branch fell on top of it, your car caught on fire unexpectedly from a natural disaster, hailstorm came around any of these things can be covered by comprehensive insurance.

3. Collision Insurance

The collision insurance covers the cost of repair for your vehicle if you are involved in an accident and it doesn’t matter whose fault it is whether it’s the person who hit you or you hit somebody else. Collision coverage will cover the cost of repairs to your car. Your own liability insurance doesn’t cover the cost of repairs towards your can unless the other person is at fault and their liability insurance would cover the cost of your repairs. Suppose the other person didn’t have liability insurance to cover the cost of your repairs, this is where collision coverage would cover the cost of your repairs.

Remember if you have a car loan you may be required to have full coverage which means all three types of insurance in your car. So while you may not have the opportunity to pick and choose the different types that you want, you do have the option to shop around different insurance companies to get the best rates.

How Much Car Insurance You Need?

Indeed, this is a really good idea to maximize your liability coverage. Generally, most insurance companies will max out in three different areas. This will include personal injury, total injury per accident and property damage. So when you go into your insurance coverage you can log on to your account, you will see three different numbers. The max generally for personal injury is up to $250,000, the total injury per accident is $500,000 and the property damage max is $100,000.

Remember the requirements differ from state to state so it’s up to you to check what you need in your state. This is important for you when you move you have to check what you may require less or more or just plain different insurance than your previous state.

Max Your Liability to $250/$500/$100

You also have to take a look at your comprehensive coverage, it’s pretty inexpensive to add so I would suggest including this as well. Keep in mind that in comprehensive and collision coverage raise your deductible. If you have one thousand dollars in your fund that’s set aside for emergencies and if you have at least $1,000 in savings, raise your deductible on comprehensive and collision coverage. 

Remember that comprehensive insurance covers any repairs to your car that didn’t result in a collision so these are things like natural disasters theft and that sort of things.

Comprehensive and Collision – Raise Deductible to $1,000

Get multiple quotes from multiple car insurance companies. You are going to opt for comprehensive and collision coverage with a $1,000 deductible in each. Then you are going to request and put that out there to different insurance companies. 

You can use a tool called gabi.com. You can download your coverage policy from progressive and upload it into gabi’s system and select your coverage and then they are going to email you about all car insurance quotes that they select for you. Then you can opt to choose to switch through gabi. It’s really simple just visit the site and sign up and get all car insurance quotes that they select. 

 

Obtain Multiple Quotes

Once you get the multiple car insurance quotes and you are able to make some adjustments then the next step is to optimize your car insurance to get the best rate. One good thing about the progress that a lot of car insurance companies do this is you can bundle other insurance policies with car insurance so with progressive you can bundle your renter insurance and auto insurance into one and you will get a slight bundled discount. 

How to Save Money on Car Insurance

One good trick to save money on car insurance is to opt to pay the six-month premium instead of the monthly rate. When you pay a monthly rate, you are actually paying slightly more than if you were to pay the six-month rate. Suppose if your monthly rate is $72 and the six-months rate is $380 and if you divided $380 into 6 months it only ends up being $63. So there is the difference of $9 that you can save on a monthly basis or $108 per year. 

Optimize Coverage

Your car insurance premium is impacted by your driving history so if you have been involved in accidents in the past and recently that could impact your premium rate, hence take that as a caveat. Also if you have an older vehicle your car insurance premium might be a bit higher that’s because insurance companies seem to think that older cars are less safe.

Moreover, when you switch from an older vehicle into a new car your insurance premium might drop into less amount. Suppose if you were giving $500, switching into a new vehicle the insurance premium might drop to $470. 

Conclusion: 

To recap all of these and in order to know exactly what car insurance you need is remember the 3 types of car insurance: liability, collision and comprehensive. Your liability you are going to max out $250, $500 and $100 and your comprehensive and collision raise your deductible to $1,000 each. Moreover, you are going to quote multiple quotes from multiple companies and make the switch. In addition, you are going to optimize pay the 6 months premium as opposed to the monthly premium and see how you can bundle other existing insurance policies.

As always drop your feedback or ask your questions using the comment section below. 

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