How to Save by Bundling Car Insurance

How to Save by Bundling Car Insurance

When you are getting a quote online for auto insurance there are some things you need to know to get the best rate that you can. Your understanding of the coverage that you are buying and what to look for in an insurance company can greatly impact the value of the coverage that you purchase. Once you have completed this article you will be ready to buy auto insurance in a way that you haven’t in your life before, a way where you know what you are doing. Let’s get started!

What Coverage Options do You Need?

First, you must carry liability coverage in every state in order to be operating your vehicle in accordance with legal requirements. This coverage is usually listed as “BI/PD” coverage, which means “Bodily Injury/Property Damage” coverage. This is your protection when you or a permissive driver of your vehicle causes damage to another vehicle. This coverage is usually listed in three separate numbers, such as “100/300/100″. This means that you have $100,000 of bodily injury liability coverage for one party in another vehicle you injure, $300,000 for all the parties of the other vehicle that you injured, and $100,000 for damage caused to the vehicle.

Medical (sometimes called PIP or Personal Injury Protection) covers injuries for the driver or passengers in the insured person’s car. While Uninsured Motorist coverage pays for injuries or property damage (depending on the options you choose) to your vehicle in the event you are struck by an uninsured driver or hit-and-run driver. Collision coverage is what is used to repair your vehicle if it collides with another object or vehicle or your vehicle happens to roll over. You choose your deductible (the amount you pay before insurance coverage starts to pay) when it comes to this coverage. Comprehensive coverage (sometimes referred to as “other than collision”) pays for the other damages like those caused by theft or fire, falling objects, earthquakes, wind, hail, flood or contact with animals such as birds or deer.

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What Causes Your Premium to Rise and Fall?

What Causes Your Premium to Rise and Fall?

Many people will base their decision to insure with one company over another based purely on the cost associated with the policy. This is why the internet has been so great for auto insurance, because it makes shopping around for the best rates easy and efficient. However, you could also affect your premium by being aware of the following:

  • Your driving record will impact your premiums. This includes parking tickets and speeding tickets, the more careless you are the more you will pay.
  • Your Credit will be reviewed to get the full picture of how you view financial responsibility in your life.
  • The amount of coverage you will require is going to affect your rates, obviously the more you want in coverage the more you will pay.
  • Where you live and how much you drive each day will also impact your rates as the safety of your car in your neighborhood could be in question along with the length of time you are on the road. Those who drive more are in accidents more and therefore cost insurance companies more.
  • Your age and the type of car will affect your rates because there are statistical facts to prove that specific cars and the ages that drive them make the person behind the wheel more susceptible to crashing.

Ultimately, your rates will fluctuate based on the approach of the company you request a quote from so the more quotes you request the better your odds are of getting a great rate.

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So How Do You Save on Auto Insurance?

So you know the coverage that you need and you know what affects that, how can you reduce the premiums that you will have to pay? There are some specific things that you can do.

  • SHOP AROUND! Nothing will save you more money when you are looking for auto insurance than shopping around for rates with different companies. The more that you look the better your odds are of finding the right deal for you.
  • Get multiple lines of insurance from the same insurer. Try to combine your auto, home and life insurance with the same company when you get a quote online. All insurers give discounts for this and it will save you big bucks.
  • Raise the deductible amounts that you are willing to pay. The more of a deductible you pay the lower your premiums because you are “self-insuring” your vehicle up to a certain level. This reduces the risk for the insurance company and they allow you to save money on premiums.
  • If you happen to have a car that is older and not worth much you should consider dropping comprehensive and collision coverage. In the end, paying for these coverage options for a year and never using them may cost you more than the car is worth anyway. Then it is just silly to pay for the coverage.

When it comes to auto insurance there is no grand secret, you have to be smart and submit as many applications for car insurance quotes online as you can. The internet helps to make this possible and you should take advantage of it. Be aware of what costs money and get to your quoting online!

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