Do you have an idea, how much you really pay for your car insurance? Review the package and coverage once again. Compare the rates and coverage of your insurance package. Is it worth it? Do you get what you paid for? Well, your car insurance depends on many factors. This includes your age and marital status, your location, and your vehicle. While you can’t do anything about your age, some people prefer to choose the premium package. However, you can choose what vehicle to purchase that costs lower insurance rates.
In this article, we will give you some tips to help you when getting insurance. Read on.
Knowing the coverage of your car insurance plan
As mentioned above, you need to identify the whole coverage of the insurance package. While most car buyers go for single insurance policy, it is best to be familiar with the specifics and how the average final cost. Refer to the list below for your own guidance:
- Bodily injury liability – This includes injury and death claims against you. It should also cover the legal costs, in case your vehicle injures or kills someone.
- Property damage liability – This includes claims for property damaged by your car in an accident. Most car insurance policies also cover the other party as well. This setup is now required in most states.
- Medical payments – Not all insurance policies include this on their package. So make sure to review the documents before signing them. Medical payment policy covers the bills to yourself and to occupants of your car. While this is only optional in some states, it would be wise to be include this in your package
- Uninsured motorist protection – This shall cover injuries caused to your or the occupants of your vehicle by insured vehicles or during the period of hit-and-run incidents. Some packages also cover the claims against a driver who has incompetent insurance. As of now, over 30% of the drivers are still uninsured and more than 70% has inadequate car insurance.
- Collision coverage – This is another thing you should consider checking when purchasing an insurance package. Some insurance providers only include minor repairs in their package. Discuss the collision coverage, and make sure they cover the up to its book value. It should carry out a deductible that includes the amount per claim you have to pay before the insurance takes effect. Generally, the lower the deductible is, the higher the premium coverage. While this is also optional, many financial and insurance experts recommend having this.
- Comprehensive (physical damage) – And finally, we have the comprehensive policy. This shall include the damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Most packages may also carry a deductible for this coverage.