Auto insurance policies contain complex terminology. Sometimes, it just seems too confusing. Read on to learn what the terms found in your insurance policy actually mean. Understanding what the insurance agents are saying is imperative if you want to make intelligent policy purchasing decisions.
Avoid getting any infractions on your driver’s license. Your insurance will be very expensive if you have a lot of traffic citations and accidents on your driving record. If you can’t avoid these things, try lowering your rates and cleaning your record through traffic school.
Many people believe that auto insurance rates go down automatically for young drivers once they reach 25. The truth is that premiums start to decrease when a person reaches the age of 18, assuming that he or she is a safe driver.
Determine what your needed coverage for a car insurance policy is before you actually purchase a policy. While many insurance options are available, some do not make sense. If you are prone to accidents, you might want to consider taking advantage of collision coverage.
Most auto insurance policies are actually issued on the particular driver who buys the insurance, not the car itself. There are many times when an accident happened with a friend who had borrowed somebody’s car; the insurance refused to pay. You would have to pay more to cover other drivers using your car.
Go for a non-sporty vehicle. Sports cars are going to cost you a lot more to insure. You should stick with an average vehicle. A larger engine also generally comes with higher insurance costs. Expensive vehicles are frequently targets of theft. This factors into your insurance cost.
Insurance is the ultimate protection against any type of accident or disaster happening to your car. The insurance will have the individual pay a certain amount that is already decided, called a deductible, anything over the deductible is covered by the insurance company saving one money.
Don’t purchase a separate car for your teenager. They should drive a car that you already have. It will be much less expensive to add your teenage driver to your existing insurance plan, too. Some insurance even offer discounts for students that get good grades.
Insurance companies are not all alike. If you don’t like the quote you receive from one provider, check with a few of their competitors.
If there is anyone listed on your policy who does not drive your car, you should have them removed. The more drivers you have on your insurance, the higher the premiums will be. Removing drivers that do not need to be covered by your insurance policy will save you money.
Increase your FICO credit score to get cheaper auto insurance rates. Did you know that they’re allowed to check your credit? There have been studies done that have pointed out that individuals with a lower credit score tend to wind up in more accidents. As a result of these findings, many insurance companies have started weaving the credit check results into their pricing. Maintain a good credit rating to keep your insurance premiums from being raised.
There are ways to lower your car insurance rate, if the high amount is due to a less-than-perfect driving record. For example, some companies will reduce your rate if you successfully complete a driving course following a ticket or accident. Some insurance companies, such as Progressive, will install a chip in your vehicle temporarily that allows them to monitor your driving habits. When you have proven that you are a consistently safe driver, you will get a lower rate.
Hopefully, you understand many of the most common insurance terms, and you’ll be able to find an auto insurance policy that best suits your situation. Education is the first step to conquering any confusion.