Making Wise Choices About Your Monthly Car Insurance
When it comes to monthly car insurance, you should have the knowledge, wisdom and understanding about how your insurance coverage is calculated. Not only is your previous driving record considered, but you have choices you can make as to how the policy is structured. Here are a few points to help you understand how you can keep your premium lower.
Insurance companies only go back so many years in penalizing you for previous violations or traffic accidents. So, be sure to keep on top of this and notify the insurance company if your driving record improves. Your age is a factor, too, and each birthday means you could be in a different age group which could lower your premium.
Liability insurance is a coverage you should have, even if it is required by law where you live. It could be in your best interest to have a higher limit of liability, even if it costs a little more each month, just in case you are found at fault in causing a traffic accident. If it is required that you have this coverage, you will have to maintain at least the minimum amount prescribed by those laws.
Collision and Comprehensive insurance give you options of deductibles and maximum limits of coverage. You can choose a higher deductible to lower your premium, and you can lower your limits to achieve even more savings. Keep in mind that if the car is financed, your lender will be on the policy until the car is paid off, and they will require sufficient coverage to protect them from loss on the loan.
Bodily Injury is another type of liability coverage. It does not pay for any physical damages to any property, but does pay for the medical expenses of those third parties who are hurt in a wreck that you cause. In the event that you get sued for being responsible for the accident, BI pays your legal expense and could save you from losing any other assets you may have. Decide if it is in your best interest to change anything about this policy, other than to raise the limits.
Roadside assistance will not pay for mechanical repairs, physical damage or any liability. This is not an insurance policy, but rather a membership that will send a service truck to tow your car, or fix a tire that has gone flat. They will also bring fuel, brake fluid and other liquids, as well as get your car started if the battery fails to crank the engine. This is usually an optional benefit, so you can decide if you really need this extra expense.
When addressing your monthly car insurance, you should now have enough ideas about how and where to improve your record, and adjust deductibles and limits to keep your premiums at a more affordable amount. Adjusting a few choices, here and there, can save you a significant amount of money.