Car Insurance Tips
If you drive you are going to have to have auto insurance so it is important to make sure that you are getting the most out of it. This means that you have to understand how it works so that you can make the right insurance choices. The following car insurance tips should help you with this by providing advice on the most common mistakes that people make.
The most important car insurance tip is to make sure that you have the right coverage to meet your needs. Despite what some people seem to think the minimum legal coverage is not nearly adequate for the vast majority of people. The amount that you need is going to depend in large part on the assets that you have. Basically you have to decide what you need to protect in the event that you get sued for causing an accident. If you have a large number of assets you will need considerably more insurance coverage.
The other big thing that you have to pay attention to when it comes to making sure that you have the right vehicle insurance coverage is to look at exactly what you are covered for. There are several different coverage types available, you may or may not need all of them. Everybody needs liability coverage and you should have uninsured driver coverage. Things like personal injury coverage and comprehensive coverage however will depend in large part on your personal situation. For example personal injury coverage is important if you don’t have a good health insurance plan, if do you likely don’t need it.
Another important auto insurance tip is that there are quite a few ways in which you can bring the costs down that you should be taking advantage of. The big one is if you don’t drive a lot of miles each year you can save quite a bit. Most insurance companies offer a significant discount if you drive less than 7500 miles each year. There are a quite a few people who fall into this category who are not taking advantage of these savings.
The other big thing that you can do to save on the cost of car insurance is to raise your deductible. It is important to understand how insurance is supposed to work; it is therefore to protect you from having to pay major expenses out of your own pocket. This is not how most people use it however; they try to limit their out of pocket expenses by having the lowest deductible that they can get. The problem with doing this is that you almost always end up spending more on premiums than you save on out of pocket expenses. The savings that you can get by raising your deductible can be quite significant so you should definitely look into doing this.