Auto insurance is a major part of your budget. Unfortunately, consumers don’t know the best way to shop for insurance. One has to know what coverage is needed and what can be eliminated. Here’s a handy guide for consumers who want to learn and save money.
Shopping Online
Anyone shopping for auto insurance should look online. There are numerous companies on the internet. Consumers can see different plans and what’s included. Many websites feature calculators that require consumers to input information. In return, the insurer offers a quote. Be sure to input the correct information. A lot of people know they drive a Ford. However, they don’t remember what model it is. Likewise, they don’t know the mileage on the car. This information can make a difference in your insurance quote.
Be Sure to Follow the Law
Almost every state has mandatory minimum insurance coverage. This coverage is required for you to drive legally in the state. The idea is that drivers need to be responsible if they are at fault in an accident. The state wants to know that people with injuries can be compensated. Failing to have proper coverage gets you in trouble with the law. Further, the punishment escalates each time a person is caught. Violators can eventually lose their license and go to jail.
It’s always a good idea for consumers to purchase more than the minimum. The minimum in many states is $25,000 per person in an accident. This means the insurer pays the victim no more than $25,000 if you’re at fault. However, the victim can sue if their injuries are severe. The consumer will be on the hook for any award over $25,000. This may not matter to those who are lawsuit-proof. Lawsuit-proof means you have no assets available to pay for damages. The victim can still sue and garnish your paycheck.
Uninsured Motorist Coverage
Consumers should always buy coverage to protect themselves. That’s what uninsured motorist does. The coverage pays for your damages if the liable party in an accident does not have insurance. Remember, there are a lot of unscrupulous people that think nothing of driving without insurance. Additionally, uninsured motorist coverage also serves as underinsured coverage. The coverage pays if your damages are more than the liable party’s coverage.
Do You Need Med-Pay?
Insurers offer medical payment coverage as part of an auto policy. In fact, med-pay is useful to offset your health insurer’s high deductibles and co-pays. It also pays for services that health insurance won’t cover. Some health insurers want to be reimbursed if their client receives a personal injury settlement. This is another reason to use med-pay to cover any injuries.
Teen Drivers
Don’t try to outsmart the insurance company when it comes to teenagers. It’s very expensive to add teenagers to an auto policy. Therefore, consumers allow them to drive their cars without making them a named insured. The insurance company will pay once if something happens. Experts say it’s cheaper to add a teen to an existing policy. Afterwards, buy an older car for the teen to drive and insure it.
Auto Insurance is important because we can’t drive without it. Look online and shop for the best insurance coverage for you. Don’t forget to check the rates with the insurer that covers your home. Hopefully, you’ll be able to find a discount somewhere.
