Car Insurance 101
If you drive, or even if you just own a car, you need car insurance. But how do you know which policy to buy.
First of all, it’s essential to know what your policy covers and what it doesn’t. Almost any policy will give you the minimum liability coverage, but you may need more coverage to protect your income and assets. You may need coverage to fit your unique driving habits or history. You also need to sure your policy will repair or replace your car if it’s damaged in a crash, and everybody needs towing. While you are shopping around, it’s very helpful to have a written record of any quote you are given for the coverage you need. This will keep the agent from trying to raise your price if you come back to them for the policy.
If you also insure your home, or you have life insurance, ask about bundling your policies. Bundling means you get all your insurance from the same company. Insurance companies offer significant savings to keep you as their customer for multiple kinds of coverage, and the simplified billing makes budgeting and paying?and making sure you have paid?much easier.
Where you live impacts your insurance rates. Car insurance is more expensive in metro areas than in rural areas, especially if you own an expensive car. More expensive cars require more expensive car insurance. You will also want to check your car?s safety rating. Safer cars are cheaper to insurance, while flashier models cost more.
Ask your agent what kinds of discounts may be available to you. There may be breaks for members of the military, women, seniors, households with multiple drivers, and holders of bundled policies. You may get a reduction on your premium if you belong to certain clubs and organizations, like the AARP. If you have a teen driver who is a good student, ask about good student discounts. Insurers view good students as lower-risk, and charge lower premiums. Your teenager may also get you a substantial reduction in premium costs if he or she takes defensive driving or a basic driver ed course.
Finally, ask around and get several car insurance quotes. Another provider could possibly offer you better coverage at a lower premium. Providers are competitive, so they also might be willing to lower their rates if they know you are shopping around for a deal. The internet makes comparison shopping easier that it was in the past. You can also do research and find out what discount programs are available, the risk assessment for your neighborhood and safety information on your vehicle. Being armed with knowledge will making negotiating a better rate easier than if you go into the negotiation unprepared.
No matter how large or how small your insurance needs, always deal with professional, authorized insurance agents. They will help you determine exactly the coverage you need and answer all your questions.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
