Analyze your auto insurance needs with these tips
It’s never a bad time to review your car insurance policy. Just like with any aspect of your finances, you don’t want to be paying for something you don’t need. Here are some things to consider when reviewing your policy.
Types of Car Insurance:
Most states require you to have a certain amount of liability coverage in order to operate your vehicle legally. Liability covers you in the event you’re in an accident that was deemed your fault. Considering that, you might want to carry more than the minimum to be on the safe side. This coverage has two types:
Bodily Injury. Coverage for injuries or deaths of others in the accident.
Property Damage. Coverage for the cost of damage that you inflicted on the other person’s property. Can include anything from a car to a house.
Comprehensive coverage pays for vehicle damage when there is no accident or collision involved. Think vandalism, storm damage, etc.
Uninsured Motorist Coverage
As the name suggests, this coverage pays you if you’re involved in an accident with someone who does not have car insurance.
Personal Injury Protection
This coverage pays for medical expenses regardless of who is found at fault in an accident.
How to Save on Car Insurance
If you have reviewed your policy and think it’s time for a change, shop around and find at least three quotes. If you want to stay with your current company, call and ask for discounts. You can sometimes save by bundling different types of insurance together.
In fact, one study found that bundling can save you anywhere from 5 to 20 percent per year. When you consider that the average auto insurance policy is $1,442 annually, bundling is likely worth your time.
Written by Chris O’Shea, moneysavvy.com.