| Auto insurance is a legal requirement in | | | | The decision to buy this coverage is usually |
| every US state and Canadian province. Costs | | | | based on the value of your car. Guidelines |
| are continuing to rise. How can you reduce | | | | usually suggest that if your car is worth |
| some of these expenses and still get the best | | | | less than $2,000, it won't be worth it to buy |
| coverage? | | | | comprehensive and collision. |
| | | | |
| First, get multiple quotes from the Internet | | | | If you own a $50,000 car though, it would |
| and your neighborhood broker. You can shop | | | | most certainly be worth it to pay an extra |
| for different types of quotes from a | | | | $200 annually or so to insure that your car |
| direct-sell insurance companies and offline | | | | will be replaced if you get in a serious |
| and online brokers. | | | | accident. |
| | | | |
| Auto insurance that is cheapest isn't always | | | | If you're driving a used car from 10 years |
| the smartest move. Ask yourself, is the | | | | ago, dropping collision and/or comprehensive |
| company financially secure? Are they | | | | coverage can usually give big savings. |
| reputable and will they pay out if you have | | | | |
| to make a claim. | | | | Run through various scenarios such as if I |
| | | | totaled someone else's car, will my insurance |
| The first piece of the policy is almost | | | | cover it? How much will I have to pay out of |
| always liability insurance. If you only have | | | | my own pocket? |
| minimum liability coverage and you injure | | | | |
| someone, their attorney can go after your | | | | Paying a higher deductible can also keep your |
| personal assets. Many insurers feel that | | | | policy costs down. Remember, the deductible |
| minimum liability is a gamble. In fact, that | | | | is what you pay out of own pocket when making |
| is why it is often only a little more money | | | | a claim. |
| for more protection. | | | | |
| | | | Buying a low mileage car and insuring with a |
| Auto insurance varies on car types. Coverage | | | | good driving record, will all help bring |
| for a sports car is very different from | | | | insurance rates down. Don't speed, don't |
| insuring the family sedan or mini-van. | | | | drink and drive and you'll save. |
| | | | |
| If you are looking to buy a car, consider | | | | Single, young males under the age of 25 get |
| buying a car that "looks good" to insurance | | | | the short end of the stick in this deal so if |
| companies. For instance, insurance companies | | | | you fall into this category make up for this |
| know what kinds of cars are prone to | | | | price increase by purchasing a more sensible |
| problems. They also know what kinds of cars | | | | vehicle. Consider delaying the purchase of |
| are most often stolen. If you haven't | | | | that cherry red Mustang until after you're 26 |
| purchased your car yet, find out what cars | | | | and married. |
| make this "good list" among auto insurers. | | | | |
| | | | Keep yourself adequately covered. You can get |
| Consider how much coverage you really need to | | | | away with having the bare minimums required |
| buy and the price each of these coverages | | | | by each state to keep you in compliance with |
| will pay. Think about collision and | | | | state laws, but that may not be enough to |
| comprehensive coverage, which is how much you | | | | protect your assets if you have a major |
| will be reimbursed for the loss or | | | | incident. |
| destruction of your vehicle. Are you carrying | | | | |
| $30,000 worth of collision coverage for a | | | | Insurance experts recommend that you review |
| $12,000 vehicle? | | | | your insurance policy often and thoroughly. |
| | | | |
| If your car was totaled, would you be able to | | | | Many insurance companies offer discounts for |
| afford to replace it? If not, you will want | | | | anti-theft devices and advanced |
| comprehensive and collision coverage. | | | | driver-training courses. |
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