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Things To Keep In Mind Before Buying Auto Insurance

Things To Keep In Mind Before Buying Auto Insurance

Susan Spencer / May 26, 2017

Whether you have just purchased your first shiny new car or you are driving around in an old rusty clunker, auto insurance is a must have to protect yourself, others and your multi-wheeled investment.

buying auto insurance

Deciding on a provider for auto insurance in Louisville Ky provider may be a difficult task. Not because they are hard to find, but you can find auto insurance ads everywhere you look.

 

Here are a few things you should consider before buying auto insurance:

buying auto insurance

  1. What are minimums? This is the lowest coverage you could possibly get as stipulated by law or your insurance provider click here. Getting the bare minimum might work well for your pocket in the short run by having cheaper premiums, but that also means that you will have to part with a lot of cash before making a claim.
  2. How is your insurance rate determined? Two factors come into play here, underwriting and rating. Underwriting means assessing the risk associated with n applicant or group to decide whether the company will accept the application. Ratings are then assigned based on this. For example, married people show lower rates of claims.
  3. Find out about optional coverage. In addition to the basic liability package, you can also get collision and comprehensive coverage. Collision coverage pays for any physical damage to your car as a result of a collision with an object such as another car or tree. Comprehensive coverage pays for damage to your car from almost all other scenarios, including fire, theft, and weather.
  4. Do you already have another policy? Combining policies from the same insurer may be cheaper. Insurers can knock off up to 15% from both your auto and home policies if you take both as a package.
  5. Don’t buy the first auto insurance that comes around. You have to constantly shop around for insurance policies with better terms. It has been found that drivers can save more than $300 on policies when they move from one to another. Even when you already have an insurance policy, it pays to shop around for a better one for the next year.
  6. Do your math. Insurance companies make a killing from clients who opt to make installment payments throughout the year. It may cost you as much as $120 a year for the convenience of paying your policy over time. If possible, opt to pay for your policy once or twice a year rather than monthly.
  7. Always ask for discounts. Discounts are awarded when an auto insurance company considers you as “better risk”. These discounts include low mileage, anti-theft devices, good student, multiple vehicles and a good driver. Check if your state offers these discounts and which ones you qualify for.

 

With the information above, shopping for auto insurance in Louisville Ky should be an easier task now. Try and get as much information as you can about the auto insurance you are purchasing and always make sure you carefully read through the documents.

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