If you own and drive a car, you need car insurance. But how do you know what policy to buy?
First of all, it's essential to know what your policy covers and what it doesn't. Almost any policy will give you the minimum liability coverage, but you may need more coverage to protect your income and assets. You may need coverage to fit your unique driving habits or history. You also need to sure your policy will repair or replace your car if it's damaged in a crash, and everybody needs towing. While you are shopping around, it's very helpful to have a written record of any quote you are given for the coverage you need. This will keep the agent from trying to raise your price if you come back to them for the policy.
If you also insure a home or you life, you may be able to take advantage of a feature called bundling. Bundled policies are all provided by the same company. Insurance companies like to provide all your coverage, and usually offer you discounts. They will also work with you to choose the due date for your premiums that best fits your budget, whether that's all your premiums on the same day, or staggering your premiums so they do not all hit at once.
One of the major factors in computing how much you pay for auto insurance is where you live. Generally, coverage is more expensive in urban centers than in rural areas, especially if you own an expensive car. The more expensive your car, the more expensive your insurance. When buying a new car, you will also want to check your car's safety rating. Safer cars are less expensive to insure, while any kind of customization or "flash" will drive insurance costs up.
Ask your agent what kinds of discounts may be available to you. There may be breaks for members of the military, women, seniors, households with multiple drivers, and holders of bundled policies. You may get a reduction on your premium if you belong to certain clubs and organizations, like the AARP. If you have a teen driver who is a good student, ask about good student discounts. Insurers view good students as lower-risk, and charge lower premiums. Your teenager may also get you a substantial reduction in premium costs if he or she takes defensive driving or a basic driver ed course.
Finally, ask around and get several car insurance quotes. Another provider could possibly offer you better coverage at a lower premium. Providers are competitive, so they also might be willing to lower their rates if they know you are shopping around for a deal. The internet makes comparison shopping easier that it was in the past. You can also do research and find out what discount programs are available, the risk assessment for your neighborhood and safety information on your vehicle. Being armed with knowledge will making negotiating a better rate easier than if you go into the negotiation unprepared.
No matter what your auto insurance needs, always deal with professional, licensed insurance brokers. They can go over your situation and tailor a policy to your precise needs, as well as answer all your questions.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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