In the times we are living in owning a car is pretty important, to be honest, it is much more effective than going everywhere by foot or public transportation. You save yourself energy and time, and it makes traveling easier as well. Still, in order to enjoy the beauties of driving a car, you need to have a clear and peaceful mind. First of all, you should never drive if you are distracted by some situation or under the influence of alcohol/drugs. And the second thing is in order for you to be prepared for any type of possibility out there you should get your car insured.
Now, car insurance is something that you should certainly get, and there are multiple options to it. For those of you that don’t know car insurance works on use or lose concept meaning that you pay a yearly premium to cover yourself from certain damage situations and if it doesn’t happen the agency keeps the premium. On the other hand, you get bonuses for not being involved in accidents and very soon after you can even have a 50% bonus (sixth year) on a premium. Saying this, there are few main insurance options including medical, property, and a liability one.
Let’s take a deeper look at how the car insurance works and how to save money on it!
What Are Your Car Insurance Options
When it comes to car insurance, there are multiple options and depending on your budget and the routine you can either go for full car insurance or a partial one. First of all, there is the medical car insurance option – in case any accident happens the company will cover potential medical bills and expenses. Along with that, the property insurance option assures you that the company will cover any damage that you might have caused driving your car (fences, backyards, etc.). And last but not least the liability insurance frees you of his obligation to pay damage expenses you might have caused to a third-party involved in an accident. On the other hand, you will not get covered expenses if you were driving drunk or on drugs, if an uninsured person was driving your car or if it is a time of war or nuclear damage.
With this saying, you should now that the maximum amount of car insurance coverage is determined by Insured Declared Value which stands for the market value of your vehicle at the time.
How To Save Money On Car Insurance
So, the first and main thing when it comes to saving money on car insurance is to use the deductible method. In terms, unless you plan to have multiple accidents a year, it might be more worth it to pay a high percentage of the deductible than to pay a monthly premium. This, of course, applies if the damage bill and the monthly premium would be of similar cost. For example, the deductible is $150, you pay $130 and leave the remaining $20 to the insurance company.
On the other hand, you have an option of using discounts that might be available for your social group. Saying this, if you have a good driving record, if you are a student or a part of certain community different car insurance agencies may offer you a discount and be sure to take that with both hands! Car insurance can be quite pricey, so that is why any kind of a discount or a bonus is worth double!
Last but not least you will be saving money on car insurance if you get only a few coverage options and not the full insurance. Of course, do this if you are certain that some situations won’t happen or the chances are slim to none.
As you can see getting car insurance is pretty important and it will leave you trouble-free. There are multiple options, and you should make a choice up to your routine. Still, one thing is clear – it is there to keep you safe (free of damage expenses), and you don’t have to break your budget in order to get vehicle insurance!