Advice For Purchasing The Right Auto Insurance For Your Needs
Finding car insurance that is affordable is simple if you abide by certain standards set forth by insurance companies. These standards may vary if you are looking for a non owner car insurance policy instead. But, we are hopeful that if you follow the advice offered in this article, you can save on your premium.
This is because all insurance companies have specific criteria which allows them to establish rates for each individual. These specific criteria can work in your favor depending on what type of policy you are looking for.
If you have a new driver you can find out if their own policy would cost less. Sometimes it is a wiser financial decision to get your teenager their own separate policy. Young driver auto insurance can sometimes be achieved by finding a specialty market for new drivers. This way you will not be penalized for having less then the 36 month driving experience required for most carriers.
This policy separation from your parents if you are a young driver can help save your folks serious money. This is because insurance companies rate policies based on the least experienced driver with the worst driving record.
This was created by design for obviously reasons. an you imagine if this was not enforced. Every child would just keep them self on their parents policy. But, this is not the process of carriers. They will rate the youngest driver so, no matter how many cars and drivers on the policy, the youngest driver will be the main rating factor.
This is why parents decide to separate their child from their policy. They are just tired of paying car insurance on their teenage son or daughters driving record. This makes sense. If you are the parent you have worked hard to maintain a good driving record if you have one.
For illustration purposes, if you do have a clean driving record, you are now paying premium on a teenager. This seems unfair from the insured’s perspective, but you have to understand the carrier’s perspective as well.
If your teenage child lives with you, then that means they have access to all the cars in the household. Even if you do not physically give them the keys to the car, they still have access to them. Yes, you get into the permissive use clause, but we just want you to get a visual for understanding purposes.
This is why insurance carriers will have you fill out a household disclosure form. This disclosure form will require you to list all the people in your household. Usually, the standard age minimum is 14 years of age. So, you would list all people, not just drivers, onto this form.
This form will also include whether you want to include them as a driver or exclude. You would need to include the drivers license number, date or birth and marital status if you are looking to include on the policy.
Your carrier will run a driving report through the DMV for any activity. If any additional activity is found, like a ticket or accent, then an increase on the premium will be seen.
If you are looking to exclude this driver, then signatures of the name insured will be required. This form will have you acknowledge that no coverage will exist on this driver if a loss or accident should occur with this driver involved. How many times have we heard that a household member of the insured has taken the keys without permission.
Then the unfortunate cause of events takes place, and that uninsured driver now crashes your car. Even though this driver took your keys without your knowledge, they will still not be covered. Why, because on that form you signed, you acknowledged that this driver will be excluded from your auto coverage policy.
This is why it is important to read over all your policy documents once you purchase it. It will help you understand what drivers and vehicles are covered, and under what conditions.
If you have any questions, this is where you will address it with your local insurance agent or broker. They can provide an overview of your policy language so you have a clear understanding.
Spend some time with your agent reviewing the specifics of your coverage before you add expensive customization to your car. You may put out $1,000 for a fancy stereo system for your car, but if the car is stolen, your insurance is only going to reimburse you for the $30 value they add to your car’s actual function.
If you drive a car, many states require you to have adequate liability insurance. All citizens should know how much insurance coverage is necessary in your state. If you cause an accident or are the victim in an accident, you will be breaking the law if you are uninsured, as well as having to face serious financial consequences.
Even just a lapse of auto insurance for one day can end up costing you higher premiums. Switching carriers or even policies might result in a gap in coverage. Your insurance provider may increase your rates when they discover these lapses.
Decide how much coverage you need when shopping for auto insurance. Coverage varies widely, giving you lots of options, although many of them will not apply to your situation. However, if you are not a great driver or have gotten in a number of small crashes or fender benders, maintaining collision coverage is probably a good idea.
Don’t sign a car over to other family members frequently. To get a better insurance quote, only have one name on each car.
Non Owner Liability Coverage
Property damage liability coverage is an important feature of your car insurance policy that you must get. This portion of liability coverage will pay for any damages caused to other property in the event you have a car accident. There are only 3 states that do not require you to have this coverage. Causing damage in a car accident is very expensive, and liability insurance can save you a substantial amount of money in the long run.
Maintaining a driving record that is completely clean is the best piece of advice about car insurance you will receive. Car accidents are the number one thing to raise your insurance rates. Drive defensively and know your limits. Stay out of situations in which you have a higher chance of an accident. Do not drive during the night if it unnerves you or you have trouble seeing.
Insurance companies will often times offer discounts for drivers who put less than 7500k a year on their vehicle. Reducing your car insurance for driving fewer miles is a fantastic method of saving money.
As you can see, you can afford good auto insurance if you do your homework. You have now seen that you can, indeed, noticeably lower your premiums with the help and advice offered through these tips.