When your insurance policy comes up for renewal, you will often realize that because your situation has changed, your insurance should too, but you might be a loss as how to effectively do this. When you are looking to make sure that your insurance suits your needs, you will of course want to look around for the best insurance rates and to see what the best auto insurance quotes have to offer, but there are plenty of things that you can do in order to make sure that your new policy reflects the coverage you need.
The first thing that you will need to think about is your payment options. Take some time to really think about what you can budget. If possible, pay off your payments in yearly or biannual basis. This will allow your premium to sink lower. While monthly payments are easy and may seem more affordable at the outset, you will find out that you will need to pay less money overall if you simply get the premium payment out of the way as soon as you can.
When you are looking for changes to make that will reduce your auto insurance, keep in mind that you can do a lot of good by authorizing an electronic funds transfer, often abbreviated to EFT. There is no change on how much you pay, but you'll find that that by choosing this option that you will also attract lower premiums by freeing up the insurance company from doing things that are associated with the processing of checks and the mailing of reminders.
Similarly, think about what your automobile situation is like. You'll find that simply figuring out what car you are driving, how much it has depreciated in value, and what you are likely to receive in a worst case collision scenario that you will find out what you really need. While you should always get the fullest coverage that you can afford, you might find that there are options that the insurance company can give you when it comes to figuring out what your policy should look like.
Remember that location will also pay a part in it. If you have moved, figure out whether your new neighborhood is one that the insurance company considers safer. If so, this is a great way to get your rates lowered. The same goes for if you have moved into a space with a garage. You'll find that the more coverage and protection that you can give your car, the better your premiums will be.
When it comes time to renew your auto insurance, don't just go with the most convenient plan. Take some time to really think about what the situation is, and what might have changed!
Auto Insurance Coverage
Auto insurance is required virtually everywhere in the United States. 48 states require at least a minimum amount of car insurance. Wisconsin and New Hampshire are the two exceptions. However, all jurisdictions require financial responsibility when you operate a vehicle on roadways. This means if you get into an accident you will be financially responsible, whether you have insurance or not.
Minimum requirements vary greatly from state to state. Laws change frequently and it is up to you, the driver, to know and understand the laws in the state you are driving. For a breakdown of the minimum requirements on a state-by-state basis,
Auto insurance incorporates the following basic components. These components are not required in every state (some components are optional):
LIABILITY
Liability is for accidental bodily injury and property damage done to yourself, passengers, and third parties. Injury damages include medical expenses, loss of income, and pain and suffering incurred as a result of your negligence. Property damages include damage done to other vehicles or personal property. Liability coverage also includes defense and court costs. Most states have a minimum amount of liability coverage that you must carry in order to operate a vehicle on a roadway. You are always free (and often advised) to carry coverage above the state minimums.
COLLISION
Collision coverage pays for damage done to your vehicle that is the result of an accident. Without collision coverage you will not receive any reimbursement from your insurance company for any damage done to your vehicle, no matter who is at fault. Depending upon the laws of your jurisdiction, you may be able to sue another party for damages, but you will not be able to collect for damages from your insurance company unless you carry collision coverage.
COMPREHENSIVE
Comprehensive coverage pays for loss (usually fire or theft) or damage done to an insured vehicle that is not the result of an accident. An example of non-accident damage is damage done to your vehicle by hail. Basically, whenever your vehicle is parked and not being operated, it is covered under comprehensive coverage.
MEDICAL COVERAGE
Medical coverage pays for medical expenses incurred on behalf of the driver and all passengers as a result of an accident, regardless of fault. This coverage is now mandatory in many states. However, you can usually get an exemption if you provide proof of traditional medical coverage.
PERSONAL INJURY PROTECTION
Personal injury protection is similar to medical coverage, except that it covers only the insured driver.
UNINSURED MOTORIST
Uninsured motorist coverage pays for damages done to your vehicle by another driver, that is the result of an accident, when the other driver does not have liability insurance.
UNDERINSURED MOTORIST
Underinsured motorist coverage pays for excess damages done to your vehicle by another driver, that is the result of an accident, when the other driver has insufficient liability coverage.
RENTAL REIMBURSEMENT
Rental reimbursement coverage will pay you for the costs incurred for the use of a rental car while your vehicle is being repaired, due to a covered accident.
