You should research your auto insurance just as carefully as you look for a new car. Auto insurance companies take pride in being able to offer good deals to their clients. To be part of those deals, you need to look into what each company has to offer. Some like to reward those clients who go the extra mile by driving safely or taking defensive driving classes online. It’s important to understand as much as you can about the policy before you buy it.
Following are 4 tips that you can follow to make wiser choices while buying auto insurance:
1. Know When to Opt for Comprehensive Insurance
A comprehensive insurance policy will cover almost every type of damage possible. Vandalism, theft, collision, weather damage, stolen items, and personal injury-all are covered.
In case you finance a car, comprehensive insurance is required only while your lender holds the title to your vehicle. Once you have it paid off, you can drop your coverage down to collision or even PL/PD that will cover only the third-party and their vehicle. If you have maintained your vehicle properly, you can extend your comprehensive cover for a longer period.
2. Understand the Terms of the Policy
Before buying any type of insurance policy, auto or otherwise, make sure to know the terms and what is expected of you as the insured party. Take the time to read the small print, and if you have any questions, ask the agent and get the answers you need before you sign on the dotted line. Never buy a policy without going over all of the guidelines first. Taking the time to know what you’re buying will ensure that you have the right coverage at an affordable price.
3. Know the Extent of Third-Party Insurance (PL/PD)
Third-Party insurance, also known as PL/PD, does not cover your vehicle or your personal injuries if you are involved in an accident. Instead, it will only compensate the other driver and their passengers for their personal injuries or property damage. This is commonly the most affordable type of auto insurance. There are no deductibles because you are required to pay for your own damages if you are involved in an accident. PL/PD insurance offers the minimum coverage mandated by each state that drivers are supposed to carry to drive on the roads legally.
4. Avail the Discounts for Good Driving Habits
Individuals who have driven safely for many years may be eligible for safe driving discounts if they have not received any tickets or citations or have never been involved in any accidents. To qualify, the applicant must have a clean driving record because a poor driving record can impact the insurance rate. Many insurance companies offer transponders to their clients to put in their vehicles and monitor their driving habits. The data collected by the transponders is collected and analyzed, providing insurance companies with some sort of a report card that shows them how well you drive.
These are some tips which when followed will help you make the right decisions related to buying auto insurance policies.
Are you looking for assistance in getting auto insurance that fits your budget? Contact the experts at the Promised Land Insurance Group. We are ready to help you with all your coverage needs.