Most of us feel the cost of insurance is high. Some people will pay regular premiums for years and never need to use their car insurance. Others may have had to file a claim at some time. Whichever one you may be, don't you feel safer knowing you are protected if an accident occurs?
How many times have you been driving and seen what appears to be a simple fender-bender? Nothing is simple. Even a slight bump from the rear can cause whiplash, and damage to the car that you can't see. Many of us have seen much more serious accidents.
Think what it would be like to have to take care of all the repairs and medical bills without automobile insurance.
Consider some statistics that might make all of us more comfortable with the automobile insurance we pay - an estimated 6,420,000 automobiles were involved in collisions in the US in a recent year and the cost of these accidents has exceeded 230 billion dollars.
Considering there are about 290 million people in the US those accidents cost almost $800.00 per person, per year. Those figures are staggering. I, personally, was shocked at the cost.
How can we protect ourselves? A major way is automobile insurance. There are many kinds of car insurance policies. Here are a few basics:
Liability: This type of automobile insurance is required in all states. It pays for the other person's injuries and property if an accident is determined to be your fault.
Property Damage Liability: This is an automobile insurance requirement in all states.
In the event that you damage another person's property, like run through their hedge, or as I once saw a driver lose control of the car, ran down the sidewalk, taking out a couple of small trees, then hit a street sign and the side of a building. No one was hurt, but it certainly took more than that $800.00 we talked about earlier to fix what was knocked down, not including the vehicle.
Bodily Injury Liability: Automobile insurance of this kind pays for others injuries. A word of caution: Check with your agent to make sure you have adequate coverage for this, because anyone involved in the accident that is injured will need to have their medical bills paid.
If you do not carry enough of this kind of automobile insurance, and the maximum is reached, then they could sue you for your personal property.
Comprehensive: If you are driving down the road and a rock hits your windshield and cracks it you are covered if you have comprehensive automobile insurance. Comprehensive automobile insurance covers if the damage is not caused by an accident.
This could include hailstones, if your car gets broken into, or like what happened to mine one time: it caught on fire while it was just sitting in the driveway, warming up one morning. Comprehensive was a life-saver, financially, for us.
Comprehensive automobile insurance often is combined with collision coverage.
Collision: Collision automobile insurance covers your car.
If you are making payments to a bank, finance company, credit union or other institution for your vehicle, most will require you to carry this type of automobile insurance. This is a protection for them as well as you. If the car is involved in an accident and is totaled, they get paid off and you no longer owe them for a car you don't have.
Generally, if a person carries collision coverage, the other kinds of insurance are also covered, as well as, personal injury protection (PIP). PIP covers yours and other's medical expenses in the event of an accident.
This is just an overview of car insurance coverage. Each state has its own specific requirements.
If you have a car, the best thing you can do for you and your family is have automobile insurance protection that meets, and maybe even exceeds, your needs in the event of an accident.
A quick way to check and compare car insurance quotes is online. Many companies offer free quotes from several different companies so it is easy to compare them.
Car Insurance In Tn
Consolidating policies
By insuring a number of vehicles with the same insurer, or by trying to take out home and life insurance through your car insurer, you may be able to secure a ‘bulk buy' discount.
Location
A big influence on the cost of your car insurance is where you live. The chance of your car being broken into or stolen is a key concern for the insurer. More urban areas traditionally facing greater risk of theft and therefore tend to be more expensive than countryside locations.
By agreeing to pay a greater excess on each claim you can reduce your car insurance premiums. This is because you are reducing the liability of the insurer and therefore in return they are able to offer you a lower premium.
Your Vehicle
The cheaper and slower your vehicle the lower your premiums are likely to be. If you are looking to buy a new vehicle make sure you fully consider the cost of insurance – you may be able to buy the car but can you afford to run it?
Mileage
You can control your insurance premiums by restricting your annual mileage. However, be aware that if you exceed the restricted number of miles you'll then become uninsured!
Parking
Where you park your vehicle overnight is also very important to the insurers. If it is kept in a locked garage, you should be offered a lower premium than if you leave it unattended in the street.
Security
Security devices that prevent or hinder theft may also reduce your premium. Common examples include alarms and immobilisers, however, be aware that as we improve the quality of our security devices the thieves just become better at bypassing them.
No Claims Discount
Save up your no claims discount by avoiding making small claims upon your policy. After a set number of years, 4 or 5 typically, you'll often be offered the option to pay an additional small premium to protect your no claims bonus. This can prove very helpful if you subsequently end up having an accident.
Advanced driving skills
By taking an advanced driving course you may also be able to reduce your premiums. The Institute for Advanced Motorists and the Royal Society for Prevention of Accidents each offer membership which provides you with discounts for both the cost of driving courses and your car insurance premiums. Two key variables NOT within the policyholder's control.
Your Sex.
Women are statistically less likely to have an accident and, if they do, it's less likely to be serious. Because of these statistics women benefit from lower premiums. It is also worth noting that if you represent one half of a couple you should consider having the female as the primary driver with the male as the second driver.
Your Age
The older you are, the less likely you are to make a claim. As a result insurance companies charge lower premiums for more mature drivers.
One final piece of advice.
A large percentage of car insurance is now sold on the Internet. That's because it's convenient and cheap. Many insurers now give a further 10%-15% discount if you buy online.
Both Michael Rohrer & Michael Challiner are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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