Are you paying too much for Car Insurance?
First of all, it is illegal to drive your car without car insurance. If you are buying a car, the dealer will not let you drive away without proof of insurance. Before you go in to buy a car you need to check what the rates will be on the new car. Do not assume that your rate on your old car will be the same.
If a car is a high performance rating or in a high theft category your rate will definitely go up. Most people are paying too much for their current car insurance.
There is always money to be saved, so get online and shop around. You may be pleasantly surprised at how much you can save. One great place to start is Low cost auto insurance From Comparison Market.. They will shop around for you and get you a number of different quotes.
How much Car Insurance do you need?
Every state has different coverage requirements.
For example: Arizona requires 15/30/10, New Jersey 15/30/5. The first two numbers refer to bodily injury liability limits and the third number refers to the property damage liability limit. For example, the first two numbers in 25/50/20 would mean in an accident each person injured would receive a maximum of up to 25,000 with only 50,000 allowed per accident (ex. 2 people needing 25,000, if the need is more such as 3 people needing 25,000 then whoever files first gets first access to the 50,000 limit and you may be sued for the rest if the accident was your fault!). The last number refers to the total coverage per accident for property damage which in this case would be 20,000.
You should also consider what you are personally worth. If you insure yourself for the state minimum and you have an accident which is your fault, the injured parties can sue you personally for any amount above what you are insured for. If you have no assets, don’t buy excess coverage.
Review your driving record and current insurance policy.
Before you begin shopping you should know your current driving record and exactly what is in your current policy and the premiums you are paying. Check your driving record with your states DMV. If there are some tickets ready to expire, wait a little longer until they are removed. Once you have determined your premium payments and your coverage you can begin shopping.
Get Insurances Quotes Online.
Two great places to go. Car Insurance quotes from INSWEB. This is a great way to get several quotes from different insurance companies.Low cost auto insurance From Comparison Market. Get real-time quotes and buy directly from some of America’s top auto insurance companies.
Write down your quotes.
After you have received quotes from different insurance companies, compare the policy against your current one and if you have questions call the company direct. Ask about any discounts available for safe driving record or extras on your car such as car alarms or anti lock brakes. Evaluate the reliability of the insurance company. You will probably save money.
Cancel your old policy.
Once you have secured your new insurance policy and have the confirmation from them cancel your old policy immediately or you will be billed.
Do you need Gap Insurance?
Did you put less than a 20% down payment on your new vehicle? Did you roll the balance from your old car to the loan on your new car? Are you upside down in your car loan? If you answered yest to any of these questions you should consider gap insurance to make sure you are covered.
Gap insurance covers you when you owe more on the car than it is worth. Most people that put less than 20% down on their car will be upside down for the first couple of years.
If you owe $20,000 to the lender and you total your car that is worth only $16,000, you will owe the lender $4,000 because the insurance company will only pay $16,000.
You can avoid this by putting a big down payment on the car. If you cannot do that or you are doing one of their 0 down deals you should look into gap insurance.
Don’t buy gap insurance at the Dealer, you can get it online for much less.