Protecting What You Own: Auto Insurance

                      Protecting What You Own: Auto Insurance

     Auto insurance is an absolute must for anyone who drives, regardless of your driving ability! Depending on the specific laws of the state you live in, you may be required to buy a minimum amount of coverage to pay your medical expenses for injuries sustained in an automobile accident regardless of whom is at fault. This is what is referred to as “no fault” insurance and is mandated by certain states. In most of these states with ‘no fault’ laws, you may not recover from the driver who was at fault in an accident unless your medical expenses are over a certain limit prescribed by the state.

     In states without ‘no fault’, you may sill be required to buy insurance, but you can sue a driver if you get injured, regardless of how much your medical bills may be. State laws change frequently,  and insurance companies are required to tell you about the new changes.

     It is important to be protected, but it is also very important to save money.

One way of saving is to have a higher than normal deductible. The normal deductible falls between $250 and $500, but if you should raise your deductible to $1000, you could benefit from a 15% to 20% savings.

     Another way to save on the cost of auto insurance is to be a good driver. This does not sound like much, but the difference between a family with no moving violations, and a family with one violation when all other facts remain equal, is alarming. Drive defensively and don’t take unnecessary traffic risks.

     The amount you pay for auto insurance is determined by a number of factors, including your driving record and the type of vehicle you drive. You might keep this in mind when selecting a vehicle. The insurance on a sports or luxury car is going to cost you much more than an average car, and the difference really add up- Money that could be invested for your long term financial security.

     Make sure that you are not paying for duplicate coverage. Some auto insurance options are already covered by either your medical insurance plan or by membership to an emergency roadside service club.

Remember:

  • Sports, specialty cars cost more to maintain, repair, and insure.
  • Insurance for high performance vehicles with powerful engines cost more to insure.
  • Safety features such as air bags, anti-theft devices and anti-lock brakes could qualify you for discounts
  • Larger four door sedans are considered safest and cost less to insure.
  • Bundling your insurance (auto & home) with same insurer will save you money.
  • Driver education and good grades may give you a discount for your teenage driver.
  • Some state allow discounts for taking a defensive driving course

 

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