How can I keep my car insurance costs low?
The first thing to do is bargain shop to make sure that the rates you are getting are reasonable in comparison to other companies. Within the policy that you have, these are a few tips that could save you a few bucks.
- Buy a cheaper or a lower profile car
- Take out a higher deductible
- Look into different insurance costs in different communities
- Pay annually
- Drop collision damage coverage
What coverage is essential for my auto policy?
You will need to have liability coverage, property damage, and bodily injury. This way you will be protected if you are at fault and cause damage to a person or their property. It is recommended to have $300,000 per accident to pay medical costs and other costs that may be affiliated. You should also have at least $50,000 in property damage.
You should have uninsured motorist coverage, which will protect you against financial damages caused by an uninsured motorist or a hit and run, should one occur.
How do I file an auto insurance claim?
A few tips to ensure that you claim correctly and receive your money as quickly as possible:
- File the claim immediately; take note of hospital bills, police accident reports, and copies of claims that have been submitted.
- Take notes of exactly what was said every time you speak with a company representative, make a note of the date and keep the information together in a file.
- If you get the feeling that the company isn’t being forthcoming with the results that you need, complain to the state insurance regulator.
- If you still feel that your claim isn’t getting the attention it deserves, call a lawyer.
How much is it possible to save by comparison shopping?
It is possible to save up to 50% by changing your companies.
There are many factors that are taken into account by the issuing company, such as:
- Driving Record
- Average Mileage Driven
Do not choose your insurer strictly on price, however. Quality and level of service should be a factor in your choice as well, and their ratings should be checked.
What deductible should I have on my car insurance?
Usually it is most cost efficient to get a large deductible which will drastically reduce the amount you pay for the service. For instance, raising your deductible from $100 to $500 will save you around 10 to 15 percent. A change from $100 to $1000 will generally save you anywhere from 25 to 30 percent.
If you are in an accident and the damage isn’t substantial, it is more economical to pay to fix the car yourself rather than involve the insurance company and having them raise your premium.
Should I keep collision coverage on my old car?
Collision coverage ensures the repair of your car whether you were at fault or not, even if your car is damaged by fire, flood, wind or hail. Depending on the value of your car, this coverage may not be cost effective.
Does my car affect my insurance rate?
It is a good idea to check the insurance rates that are given to certain cars before you buy them. Usually as the cost of the car rises, so does the insurance premium. The insurance rates on used cars are generally substantially lower than those of new cars.
How significantly does my address affect my insurance?
There is a big difference in the premiums that people pay in the suburbs where there is much less traffic congestion as opposed to people that live in big cities with many accidents per capita. Usually this is judged by the area code of which you register as your home.
Should I pay monthly or semi-annually?
Monthly payments are convenient and you don’t have to pay as much at once. However, monthly payments end up costing you more in the long run.
How else can I save on insurance?
There are a variety of discounts available from the insurance company for all sorts of reasons: living close to work, getting good grades, and so on. Be sure to ask for a list of these discounts to see if you qualify for any of them. Agents may not ask you about these so make sure that you bring it up.
What will worker’s compensation cover if I ever need it?
Worker’s compensation will only cover you for injuries that occur on the job site. The compensation varies from state to state, but most states will pay throughout the lifetime of the worker, in the case of a permanent disability.
You can get all of the information that you need regarding individual state’s worker’s compensation benefits by contacting your state’s Department of Labor.
What exactly is long-term care insurance and how does it work?
With long-term care insurance (LTCI), you are guaranteed to be paid a certain amount of money towards care for a specified length of time.
As the age of the covered individual increases, so does the premium, so in order to get a better rate, this is something that you may want to purchase earlier in life while the premiums are still low.
Indemnity-type insurance actually distributes the money to the caregivers, and pays the daily benefit directly to the insured party; this type can be easier because there is much less paperwork and more flexibility about how the money can be spent.