Auto Insurance
Buying a car means taking a well thought out decision. However, sometimes taking a well thought, wise decision gets difficult. This is even more so, when it involves a big investment decision like buying car and insuring it. One wrong decision and you might end up in a financial soup. Once you have already bought a car or you have owned a car for sometime now, it is time for getting it insured.
Factors
Now, when we come to think of car or for that matter any auto insurance there are quite a few factors that have to be considered before settling for a particular market offer. Analyzing these factors would determine which auto insurance policy suits your needs the best. Or else you might end up paying too high premium or not taking enough coverage for your automobile. First of all one has to consider what is the purpose of owning it. Whether it is for personal use, used as public transport such as private taxi, or used in transportation of heavy duty or light duty industrial goods or is it put to some other use. Age is also a major consideration. Old vehicles have to pay low premium as compared to the new one. Type and model of the vehicle also play a major role. Like wise there are number of factors that need to be checked out.
Getting the right auto insurance quotes
When you buy online auto insurance there are large numbers of sites that offer auto insurance on each site there are quite a few number of market offers. This makes online shopping for the right kind of auto quote a tedious task. However, there are some sites that provide automated tools that assist you in determining what kind of auto insurance would work the best for you and how much coverage do you need. These tools or auto coverage analyzer can go a long way in helping you save a whole lot of money on auto insurance.
Wrong auto insurance would leave you paying amounts that are too high and paying extra for coverage you may not need. On the other hand, if you choose amounts that are too low, you risk being uncovered in case of an accident. Thus, whether you’re shopping for new auto insurance or renewing your existing policy, Auto Coverage Analyzer can help you make the right coverage choices. All you have to do is answer a few question about your financial standings and your automobile conditions, price tag, coverage needs etc and the auto coverage analyzer would automatically generate coverage category wise auto policy value recommendations and explanation as to why is it needed.
How Much Auto Insurance Do You Really Need?
Bodily Injury Liability
This coverage, which is required in most states, compensates the driver of the other car and its passengers in the event you get into an accident.
How much auto insurance coverage do you need ?
A good rule of thumb is what ever you are worth ,you should get. Meaning if your net assets (Wages from you job, What your Home is worth, Investments ect) are worth. Say you make $28,000 a year and you rent your apartment then $50,000/$100,000 should be enough. If you make over $75,000 per year, you own a house that is worth $150,000 and have investments of $35-40,000. You may want to be covered for $100,000/$300,000
It depends on certain thing on much you will paid for this type of policy. Your age,Driving record,married or not, Credit score and where you live. A person in Houston Texas may pay more than someone in Jasper Indaina, in a like manner Sometimes a $200 - 400 per year more, isn’t that a kick in the shorts!!
According to the Insurance Information Institute.
if you have a lot of assets, you need to get at least $300,000 in bodily injury on you auto policy and at least $300,000 of coverage on your homeowners policy as well.Then it is a good idea to spend another $175 to $300 for a $1 million umbrella policy that covers you in all manner of liability claims.If you want even more coverage,useally it about $75 for $2 million, and for each Million after that ,is about $50 per million.
Property Damage Liability
This coverage will pay for the repair and replacement of the other person’s car or property in the event of an accident. Minimums of $5000 are required by most states.
To be honest you really need a minimum of $50,000 per Auto you own , As well as, you need a total of $100,000 coverage.
Personal Injury Protection
This coverage pays for the medical and funeral costs associated with an accident for you and your family , no matter whos fault it is. But if you already have separate health, life and disability policies, I would not waste any money for this…
Uninsured / Underinsured Motorist
This coverage is one of the best values as insurance goes and everbody needs it too…
This pays for your Medical and Funeral costs for you and your family. Say if you was in a hit and run driver or someone that does not have enough insurance, this will pay. Even better the coverage is only on average about $40 per year for $100,000 worth and will make up for most anything the medical insurance doesn’t….cool huh
Collision and Comprehensive
Collision pays you for the full costs and repairs or replacement after a accident.
Comprehensive pays you if your car is a pert of a natural disaster,theft or vandalism. The lower the deductable the higher in premium cost..so a $250 deductible will cost much more than say a $1000 deductable would…As a rule of thumb, always choose the highest deductible you can afford. If you have an older car, over 5 years old or older, you may want to drop this coverage
The reason being is vehicles are valued from the Kelly Blue Book. This book tells the value or worth of every car on the road. If the cost of your collision and comprehensive is more than 10% of your car’s Blue Book value, you may need to conciser dropping this coverage. Keep in mind that if you drop the coverage,YOU will have to pay for anything that happens as a result of a accident, even if your pride and joy is stolen or totaled Unless you have a special car of sorts and really need this..I know, been there done that:)
Rental Car / Towing
I will say only 3 words about rental and towing…save your money! Most times than not, the other person is at fault and his or her insurance will the pay cost of
such items.
Auto Glass Insurance
Auto Glass is very expensive,some cases as high as $2000 !!
An average cost is around $500 for a windshield. This coverage is well worth the money. As the nursery rhyme goes..sticks and stones may break my bones..They break Glass too!!