Many people think learning the terms of auto insurance is difficult. As with most things in life, learning more about selecting auto insurance makes the whole process seem far less confusing.
If you want to buy aftermarket parts or decorations for your car, ask your agent about the insurance consequences. You may find, for example, that the $2,000 you spent to upgrade your car into racing form actually added less than $500 to the vehicle’s appraised values. Should the vehicle get stolen, you’re out the difference.
It is important that your license remains clean. Moving violations and traffic accidents will result in dramatically higher insurance premiums. There are times when you can’t avoid the accident or ticket, so you should check out traffic school to see if this will help clean your record and make your insurance premiums lower.
Do not switch cars between family members to keep your premiums low. You will get a lower premium if you only have one name on each car.
When shopping for car insurance, you should understand that only the driver on the policy is being insured. Often times, what can happen is this; a person will allow someone else to drive their car. If an accident occurs, the insurance company won’t pay the claim. You might have to get an addition to your coverage to allow for this.
Always be certain to purchase property damage liability coverage as part of your auto insurance policy. This liability will cover damages your car causes during an auto accident. The majority of states require drivers to carry this coverage. It can be a real financial lifesaver if you get into a serious accident with lots of damage.
As you can see, there is a lot more to auto insurance than most people think. Like with many things, you should take the time to learn as much as you can to ensure your car is well-insured and covered under any situation that may arise. By following the above tips, you can be smarter about choosing a better auto policy.
