Tuesday November 15th, 2011 12:49 Car Insurance Tips for Geeks

Geeky girl

Auto insurance is something you must understand before you can effectively cover your insurance needs. Most people can satisfy their needs with a basic full coverage auto insurance policy that has liability, collision, and comprehensive coverage. Car rental, emergency road service and uninsured motorist are worth considering depending on individual circumstances.

  1. Liability Insurance covers the other vehicle and passengers if you have an at fault accident.
  2. Collision covers your vehicle and passengers if you have an at fault accident.
  3. Comprehensive covers your vehicle against most other types of incidents including damage caused by hit and run, weather related damage and theft.
  4. Car rental pays for you a rental car while yours is out of commission because of a claimable accident.
  5. Emergency road service pays for car repairs made on the roadside or for tow charges to the nearest garage or dealer.
  6. Uninsured motorist covers your vehicle and passenger if an uninsured driver causes an accident.

In most cases, the law requires liability insurance coverage and if a financial institution has an outstanding loan on the vehicle, they usually require full coverage. Insurance companies collect statistical data on a daily basis. These statistics are contributing factors to the premium you will pay. This information consists of data that tells the insurance company what areas of the country have the most claims and those that have the largest number of serious accidents.

Geek woman

Data shows the age group and sex that have a higher number of accidents and the areas with the highest number of weather related claims as well as much more collected data. You have no control over these premium-setting circumstances. There are circumstances directly related to the amount of premium you pay that you do have some control over. The following tips will help you get the best discounted insurance rates possible.

  1. Multi-vehicle discount- Insuring all your vehicles with the same company will discount the premium.
  2. Multi-insurance discount- Purchasing all your insurance needs from the same company nets a discount.
  3. Deductibles- The higher the deductibles are the cheaper auto insurance rates will be.
  4. Driving record- The best discount given is for a good driving record with no tickets or chargeable claims.
  5. Vehicle type- Some vehicles are more costly to insure than others because of theft, involvement in accidents, safety features and other factors.
  6. Credit history- Good credit indicates a responsible driver and results in better rates.
  7. Miles driven- The more miles you drive the higher insurance rates will be.
  8. Driver training- Any safety drivers course will result in a discount.
  9. Memberships- Ask about membership in organizations because many will provide a discount for you.

When you understand auto insurance terms and what they mean it is easier to calculate your needs. You can buy insurance direct, through an agent or a broker. Direct is cheaper, but you eliminate the expert that can help with questions and claims at any time. Most people find that having an agent or broker at their disposal is worth the cost. Go online to an insurance comparison site and find companies that fit your needs at an affordable price. Research any company you are interested in doing business with to make sure they are solvent and pay claims fairly and quickly.

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