In the distant past, car insurance was mostly purchased by people who had loans on cars, really nice cars, or lots of assets that they needed to keep protected from the liability of causing a car accident. More recently, however, nearly every state in the United States now requires everyone who’s driving a car to be insured with at least liability insurance covering those they hit, the car they hit, and the medical bills for the people riding in their car and for themselves when they’re involved in an accident that is their fault. Optionally you can cover your own car for damage and theft, that’s called comprehensive and collision insurance, if you own your own car this is an option, if the bank owned your car is required to protect them from loss. Let’s take a look at a few tips to help you learn about auto insurance rates (or car insurance quote), and what you can raise or lower, depending on your risk.
When getting auto insurance rates from most car insurance companies you’re able to increase or decrease certain coverages, and increase or decrease the deductibles as well. The most important point to make about that, is that you need to decide if, due to the age and condition of your car, whether it’s worth insuring it for collision and theft. This is a major expense on top of your liability. If your car is a little bit older, kept in the garage most of the time, you live in a low traffic area, and you never leave your car outside, these would all be good reasons why you might want to forgo collision and comprehensive insurance, or keep a very high deductible. If you’ve never had an at fault accident keeping collision coverage on an older car could be a waste of money for you, on the other hand, if it rains softball sized hail 10 times a year in your county, better get that comprehensive. These are the things that you need to decide before you buy.
In the previous paragraph we talked about comprehensive and collision which covers your car for theft and accidents, now let’s talk about liability. Liability basically covers other people for the mistakes you make. In other words, if you hit somebody with your car. your liability covers the physical damage to their car, and the medical payments for those inside, plus any medical payments for passengers in your car, in addition to yourself. This is typically what is required in each state in order to drive. You can adjust your premium payments by increasing or decreasing your limits of liability, however, many times when you double your limits of liability, your premiums won’t double, they will only go up percentage. At this point you need to decide, if a few extra dollars a month is worth it for you to have the peace of mind to know, if you do cause an accident, those that you are responsible for, will be well taken care of, no matter how extensive their injuries.
Basically, if you can decide what you want covered, and how much you would like to cover yourself, then combine that with what is required in your state, you’ll have the auto insurance rates and policy, that’s right for you.