How Your Auto Insurance is Determined (QUIZ)

When it’s time to get auto insurance, whether for the first time or when you’re changing policies, you’ve got a lot to consider. An auto insurance policy comes with many coverage options, and you need all the facts before you opt in or out of any of these types of coverage. The worst thing is when you think you’re covered for something, only to discover you’re not after having been in an accident. That’s why it’s important to understand the different liability coverages, collision insurance, and more.

So, what kind of insurance takes care of damage? Well, that depends on how the damage happens. If you’re at fault and you damage someone else’s property, then property liability insurance is what covers it. However, if that same accident also damages your car, it’s actually collision insurance that pays for the damage on your automobile. Further, if someone is injured in that car accident, bodily injury liability insurance will cover those costs. That part of your insurance also helps you with legal representation if the other person decides to sue.

Auto Insurance Basics

As you can see, car insurance is rather complex. You can opt for the minimum legal coverage, the maximum an insurer offers, or something in between. Remember to consider roadside assistance, too, because nobody likes dealing with a flat tire or an empty gas tank alone. To find out more about auto insurance and to discover the gaps in your own knowledge, take this Health IQ quiz about basic auto insurance today.


Some Helpful Auto Insurance Tips for Car Owners

Plenty of benefits come with auto insurance. Some of them are;

  • You will get compensation if your car is stolen or damaged.
  • Liability in case of injury.
  • You will get coverage in foreign countries (not all companies offer this facility).

Choosing an auto insurance is not easy. All insurance firms offer auto insurance. Insurance companies are plenty in number and they place their offer with eye-catching punchlines and over the top claims. It becomes difficult for customers to decide on a particular auto insurance policy.

Auto Insurance Basics

To choose an auto insurance, customers need to follow some tips. Those tips are below;

Compare rates

For the lower premium rate, you need to compare rates offered by different insurance companies. At the same time, you need to compare the total coverage. Consistency is most important when comparing one insurance company with the other. The amount, type of insurance and the total coverage are all important. Also, make sure the company in question is financially stable.

Ask for discounts

Insurance companies offer discounts. So don’t forget to ask your agent. Remember, the only reason discounts are being offered is the company acknowledging you a better risk. Discounts are given so you could buy multiple vehicles, anti-theft devices, attend driver education courses and recruit an efficient driver.

Safety is important

Your safety record can help reduce the car insurance payment. So drive with caution. If you don’t have an excellent driving record, get enrolled in a driver safety course. What type of car you use is another determining factor. If any member of your family has a good driving record, you could expect low premium rate and save money on auto insurance.

Optional coverage

Check if the company offers collision and comprehensive coverages. Collision coverage compensates in case of physical injury if the car hits a tree or another car. Comprehensive coverage, on the other hand, pays the owner if the vehicle is damaged by vandalism, weather situation or fire. Both are optional but comprehensive coverage is more expensive compared to collision coverage.

Select a high deductible plan

According to experts, car owners can save money by upping the deductible cap to $500 from $200. This would enable them to save 15 to 30% on collision and comprehensive coverages. If the owner goes for $1000 deductible, he could save 40% or even more. However, while going for a high deductible plan, the owner must have active savings account for situations where money could be needed urgently.

By following the above tips, you could save money on auto insurance. So follow these tips and be totally worry-free.