Ever since car insurance has become a staple in every one’s budget, most of us have made it a valid point to research and to become acquainted with everything and anything that has to do with the cheapest car insurance. We have convinced ourselves that being well-informed will help us in maintaining a low car insurance rate. This is true. But just how much do we really know?
Let’s start with the common types of car insurances.
1. Comprehensive Auto Coverage. This is the type of car insurance that covers the damages made to your vehicle. The damages may include fires, floods, theft and road kill.
2. Personal Injury Coverage. This is the type of insurance that covers a major percentage of your medical and rehabilitation bills, lost wages and in case, a funeral. This type of insurance is also known as a ‘no fault – insurance’. The insurance will still suffice regardless of whose fault it was.
3. Bodily Injury Coverage. This type of insurance is what covers any damages you may have caused to the other party. This will only apply to accidents that were your mistake.
4. Collision Coverage. This is what will cover any damages that have been caused to your vehicle in a road accident.
5. Uninsured Motorist Coverage. This is the insurance that will cover any damages that have been caused in an accident with an uninsured motorist. It will protect you from irresponsible drivers who have no car insurance coverage.
A Full Coverage is what most people seem to choose nowadays. It is a combination of the Comprehensive Coverage and the Collision Coverage. Both of these coverage’s are deductibles and are paid out of the premium. Some drivers, however, choose to have a lower premium. Hence, they will pay the deductibles apart from the premium.
As with most motorists, car insurance payments can be a little bit heavy on the pocket. Therefore, people have learned to smarten up and choose coverage’s wisely. Aside from knowing exactly what will benefit you in the long run, here are a few quick tips you might need to know.
1. The type of car you drive affects your car insurance rates.
2. Brand new cars can usually be insured for less.
3. Coverage could often be a waste of money.
4. Different Car Insurance companies have different car insurance rates.
5. In order to lower your rates, increase your deductibles.
6. Late payments could greatly affect your policy.
Hopefully, these tips and tidbits of information will help you in regards with your car insurance. Always keep your eyes on the road and Drive safely!