Best Auto Insurance Rates – Is Cheaper Better?

car-insuranceWhen shopping around to find the best auto insurance rates you will probably be looking to compare premiums from one insurer to another. However, rates are not the only variable that will keep your insurance costs low, you also need to look at the policy details itself and the coverage you will be obtaining. Some of the provisions are very important, while some are merely used as a filler addition and many more can be simply an unnecessary cost depending on your current situation.
Personal Assets and Family Come First
The best auto insurance policy will provide adequate coverage for both your family and your assets. Even though most laws require insurance policies that cover medical expenses, rehabilitation and burial costs for your passengers and other people involved in the accident, including pedestrians, the amounts are quite low and inadequate. Depending on your income and level of your assets, you should be looking at buying at least $100,000 coverage per person and $300,000 per accident, but this depends on your current situation.
The same holds true for insuring your car as most legal limits are for $15,000 and considering that a new car averages around $25,000. So you need to consider getting coverage for at least $30,000.
You also need to consider other issues such as being involved in an accident with an underinsured motorist. The additional coverage will save you a lot of pain as it will cover the same costs the other driver would have been responsible for, costs you would otherwise have to pay for out of your own pocket.
Nice Perks but Not Mandatory
As stated above, the best auto insurance rates will not necessarily lie solely in the premiums but also the additional coverage you get that may or may not be necessary. For example, with collision and comprehensive coverage the higher the deductible you carry the less you have to pay to the insurer in premiums. The deductible is the amount of money you will pay to the repair shop before your insurer has to step in.
If your car is worth less than $5,000, you probably don’t need to include these because over time the premiums will add up to much more than the insurer will have to pay out even if your car is completely destroyed. Additionally, remember that if an accident is not your fault the other driverís insurance will be covering the repair costs, it is not you that needs to cover this.
Getting the Best Auto Insurance Rates
There are many discounts available but insurers prefer not to publicize them so you have to make sure and ask. Often you will find that if you take certain actions or meet certain criteria you will be able to get a big discount on your premiums. The same holds true for certain categories of people, from senior citizens to teachers. Just have to ask!
You can also get sizeable discounts on your vehicle insurance if you purchase more than one type of coverage from the same provider. Think of it as volume discount. So, if you buy car insurance as well as homeowners insurance from the same provider you can get anywhere up to 15 percent discount on your rates. This is something very simple that can save you a nice portion of money per month.
One other way you can make sure to get the most solid auto insurance rates is by analyzing whether or not filing a small claim is worth it in the long run. The more claims you file the higher your premiums will go, so if the repairs you need are under $1,000 you should consider covering them yourself rather than filing for it with your insurer. Filing might save you a bit in the short term, but over the long run you end up paying more per month on your new premiums.

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