How To Get Inexpensive Auto Insurance

2007-03-08 10:33:40

( Insurance )



Looking for an inexpensive auto insurance quote? There are actually several providers that offer low cost options, but you have to make sure that you get the coverage you need.

Most online insurance quotes generally recommend the cheapest option. Before you make an impulsive purchase, however, read the terms of coverage carefully. Don’t go blindly into a cheap insurance deal without knowing what you’re getting yourself into.

Anatomy of an Auto Insurance

In getting inexpensive auto insurance, examine the policy and make sure that all the required elements are in place. Depending on your needs, look for any or all of these components:

Compulsory third party liability: You are required by law to have this type of insurance to protect third parties against loss, damage, or injury caused by your vehicle. The lack of third party liability coverage is punishable in all states.

Personal loss or damage: This component protects your vehicle from potential loss or damage. The market value of your vehicle is used as the basis for the coverage amount. Brand new cars, for instance, typically require higher premiums than second hand vehicles.

Excess third party liability: The limits of compulsory third party liability are minimal. Therefore, if you wish to increase your liability coverage, you should get a voluntary third party liability component. This is particularly important in serious road accidents when you have to shoulder huge hospital and medical expenses. Excess third party liability has two parts, namely, bodily injury and property damage. The former pays for third party injuries caused by your vehicle, and the latter pays for damage to property caused by your vehicle.

Acts of God cover: This coverage is not too common but equally as useful. It protects your vehicle from damage resulting in acts of God. If a snow storm wrecks your car, for instance, this cover will help pay for the damage.

Passenger/driver personal accident protection: The law requires only that you protect third parties, but you should also consider protecting yourself and your passengers. This add-on cover will pay for medical bills for your personal injuries, as well as those of individuals riding in your vehicle at the time of the accident.

How To Get Inexpensive Auto Insurance

One way to get a cheap auto insurance quote is to increase your ‘deductible’, or the amount you have to shell out each time you make a claim. Increasing your participation in paying for the damage can significantly reduce your premium.

Some insurance companies can also give you a discount if you can show proof of lower mileage. Apparently, individuals who drive less may be considered lower risks, and therefore entitled to slightly lower premiums.

If your vehicle is not brand new, you may want to opt for a less comprehensive coverage. In the long run, your premiums and your deductibles may far exceed the value of your vehicle. If you’re driving an old car, re-evaluate the components of auto insurance and choose only those that you require.


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