How to Save on Auto Insurance

Car insurance is necessary if you want to drive around, but it doesn’t have to cost you a fortune. If you feel like you are spending too much each month to insure your car, there are a few things you can do to try and lower your payments. Using the advice below you may be able to shave a good deal of money off of your payments, money that you can use towards more important things.

The first thing you’ll want to do before buying an insurance policy is to shop around. Do not just go with the first company that comes along. Talk to as many different insurers as you can, and compare them all to one another. Make a list of the pros and cons for each company before you make your decision. If you already have an insurance policy, you can still shop around and compare other plans to your current one. Then, when your current plan is up, you can choose to switch over to another carrier.

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If you are about to purchase a new car, consider what the insurance will be to cover it. Different types of cars requires different types of insurance, and some will be more expensive than others. If you want to save on your insurance costs, you may want to find a car that is easier to insure. Talk to your insurance company and find out what it would cost to insure the different cars you are looking at. If the rest of the factors even out when trying to decide on a car, you can use the insurance rate as a tie-breaker.

Once you have a plan, there are a few things you can do to try and lower your monthly payments. The first is to get a higher deductible. This is the amount of money you pay before the insurance policy kicks in. A higher deductible is great if you don’t get into any accidents, and therefore don’t need the insurance policy. However if you get into a bad accident, you will be paying a large sum out of pocket before your plan starts. Consider how much you are willing to pay in a deductible and see if it can lower your monthly payment.

Some other things to look at are: discounts for low mileage, reducing coverage on older vehicles, maintaining a good credit rating, and any other discounts the insurance agency is offering. Sometimes all you have to do is ask the insurer what kind of deals they have available, and you can end up saving yourself some money. While the strategies above may not reduce your bill drastically, every little bit will help. Do some research into what your current company can do for you, along with what other companies have to offer. Compare them all against one another in order to make the best decision.

Should You Sign up for Rental Car Insurance?

If you’ve ever rented a car before, chances are high that you’ve encountered one of those representatives who badger you to sign up for the agency’s car rental insurance. This is in case something happens to the car while you’re using it. If you think about it, it makes sense but not all the time.Before you go ahead and sign-up, make sure you double check your car insurance first as well as your credit card.

Does your personal car insurance cover car rental?

Car rental is an extra option or protection you can either opt in or out. Those who have a reliable car generally refuse this added feature to lower the cost of their premiums. Those who not optimally insured, however, are better off including the extra protection to their policy.

If you believe you signed up for this extra feature, check your current policy and inquire about the coverage that extends to your car rental. Deductibles usually still apply provided that the rented car is for your personal use.

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Does your credit card cover car rental?

If you’re paying your car rental with a credit card, you’d also want to check with your credit card company if insurance is covered. Majority of credit cards generally offer some form of rental car protection as part of your signing up incentive. The extra protection for credit cards are generally secondary meaning that there are things you need to do first before the coverage kicks in.

With credit cards, coverage often only include collision damage and theft but not personal injuries. To avail of the coverage your credit card extends, make sure that you decline the rental company’s waiver for collision damage. You also need to be the primary renter and you have to pay for the car rental fees in full using said credit card.

When is car rental insurance a good idea?

Car rental insurance from the rental company is a good idea when you don’t have any form of insurance at the moment. Buying the liability coverage from one of those representatives is a good start before you drive away. But if you do have insurance, signing up with the company isn’t really necessary.

Other times that getting a rental insurance makes sense is when your existing car insurance policy do not include collision coverage and when your insurance is under the commercial category. If you want to pay a high deductible on your current policy, opting out for the extra protection is the way to go. You only pay or sign up for rental insurance every time you rent a car which hopefully is not often.