There is a lot of complicated insurance jargon thrown out at you when you are purchasing auto insurance. Sometimes, it just seems too confusing. The advice in this article may help you better understand insurance terms. Knowing the terms will make you a more informed consumer.
If you are thinking about buying aftermarket parts for your vehicle, speak with your insurance company to find out exactly what and how much they pay if your car was in an accident or stolen. Insurance usually won’t cover the cost of aftermarket parts, but will add to the value of the vehicle.
Before you purchase a car, find out how much it would cost to insure it. Talk to your insurance agent about which cars offer the best rates. This will help you decide between a used car and a brand new car. If you purchase a car with a high safety rating, insurance will be quite a bit cheaper.
You should review all after-market equipment you intend to install on your car with your insurance agent, so that you can be sure it gets covered properly. Your high end muffler may have cost you a fortune but if it is appraised at a low value, then you are at a net loss if your car gets stolen.
Carpooling or taking public transit can save you money on your auto insurance. Insurance companies will reward you for being responsible by lowering your insurance rates. One way to prove your responsibility is to lower the overall mileage that you drive on a daily basis. If you tell your agent that you have been riding the bus or carpooling, chances are they can find a discount to reduce your premium.
Standard car insurance policies insure the driver, not the vehicle itself. Many times people will let a friend borrow their car, and if they get in an accident, the insurance refuses to pay. If you do lend out your car, it is probably a good idea to purchase coverage for extra drivers, though this will cost you more money.
Property Damage Liability
You need to make sure that your policy includes property damage liability when you are purchasing vehicle insurance. This covers any damage your car may have created during an auto accident. It’s technically required in all states, except for three. However, in the event of an accident occurring, property damage liability could prevent you from having a very large bill.
Keeping a clean driving record is the best car insurance tip you can get. A car accident will raise your rates quicker than almost anything else. Do what you can to avoid accidents. Drive carefully and avoid taking roads you are not comfortable driving on. If you have poor night-vision, then avoid driving at night.
Consider whether your policy provides more coverage than you really need. For instance, if your car is an old model or simply not worth much, consider removing collision insurance from your plan if possible. By getting rid of coverage you do not need, you can lower the amount of your monthly insurance bill. Also, look into taking off liability and comprehensive coverage.
If this article has made the labyrinth of car insurance a little easier to navigate confidently and successfully, it has fulfilled its purpose. Understanding your insurance options is the only way to choose the right one.