Car insurance may seem like an unnecessary expense to some however in most places it’s illegal to drive without insurance and in fact, when you find a good deal with an affordable premium you can get way more than your monies worth. Most people don’t bother getting a car insurance coverage because they think it’s an unnecessary expense.
The hard part is finding a good plan at a good price off the bat. Obviously, once you’ve been a customer for a while you can take advantage of some discounts but the goal is finding the best deal all the time so here are some of our top tips for improving your car insurance policy.
Find the Declaration Page
Your declarations page contains the summary of your coverage which breaks down who and what is covered under the policy. It also includes information about your coverage limits.
This page also contains important information about what discounts and services you should receive. If you don’t understand something on this page, you better contact the insurance agent. They will take the time and explain everything to you.
Don’t feel shy if you don’t understand a term; this is what insurance agents are paid to do.
Understanding everything on these pages are the first step into maximizing your policy.
Review the Mandatory Coverage
You better have enough insurance to meet the minimum requirements in your state. The coverage is better known as mandatory coverage. It covers body injuries and property damage. There is not much you can do regarding cuts for this part of the policy as it’s legally required.
If you are trying to save money just make sure you aren’t paying for excessive limits. That said make sure you have enough to cover yourself in case of accidents and potential lawsuits.
Pro tip: keeping liability coverage lower on auto and home insurance policies if you have an umbrella policy. These policies also cover personal liability coverage and are very affordable comparatively.
Check Optional Coverage
Option coverage generally consists of collison and comprehensive coverage. Generally these are required as well if you have a loan or lease on your vehicle.
A lot of plans will also include property protection, towing, labor, and damage liability in this area. Collision and comprehensive insurance are important if you have a high-end vehicle and don’t want to be on the hook for the loss.
Collision will pay for the damage down to your car in an accident. The comprehensive will pay for damage done to your car in a non-traffic accident.
Uninsured or underinsured coverage pays for your expenses if you get involved in an accident with an uninsured driver.
Pro-Tip: If you increase the deductible on your collision, you can cut overall costs.
Car insurance policies come with a list of discounts and credits you receive or could be eligible for, you just have to know where to look. Discounts can include everything from a multi-vehicle policy to bundle or student discounts. Some policies offer savings according to the safety features of your car so be sure to review what you may be eligible for.
If you don’t find a list of discounts or credit in your policy, it means you currently aren’t receiving any so you should speak with your agent and see what all is available. You may be able to find a handful of discounts that really add up!