If you are considering buying a car or have decided to get a better deal on auto and car insurance, then this article will help you get the upper hand on insurance companies. We are going to look at what auto insurance really consists off and how you can save money on your premiums.
I know most people look at auto insurance as a necessary but annoying expense. It’s hard to accept paying thousands of dollars to get your car insured, particularly in the current economic climate. A better way to think about auto insurance, and much easier on your mind, is to see it as an investment for the future. If you are looking for full coverage, liability only or a combination, the goal is the same: To get maximum value for your money. The best way to find cheap auto insurance is to shop around online, but you have to know what to look for. That is what we are going to look at in this article. Many times you will find that once you understand the basics of online auto insurance, that you can save money while even improving your coverage.
So what kind of auto insurance should you get for your car? That depends on several things. Basically there are two general types of auto insurance: Liability Only Insurance and Full Coverage Insurance. Between the two there are many different combinations and you can often tailor your insurance package to suit your needs, but you must understand the difference to take advantage of the offers.
Let us look at the first type of car insurance:
Liability Only Car Insurance
Car insurance is regulated at the state level, which means that each state has different laws and guidelines concerning what kind of insurance you need to be road legal. All states however have the same minimum requirement: You need to have Third Party Liability Insurance. Where they are different is in how much liability coverage you need. Liability insurance is the part of your insurance that covers damage or injury that you may end up causing to other people or their belongings. Most often this will be damage to another persons car. You must have insurance by law that covers his or hers cost. You can not drive any kind of vehicle on the roads without liability insurance.
There are different rules regarding how much liability coverage you need. One state may require you have 25,000 dollars as a minimum while another will only require 15,000 dollars. To find out how much you need, contact your local traffic authority or ask your insurance broker.
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One thing you should keep in mind anyway, is that these auto insurance legal minimums or just that: Legal Minimums. Accidents are expensive and can easily run into more than the minimum required. It doesn’t do much good to have liability insurance for 25,000$ if you commit damage for 100,000$ Then you would still owe 75,000$, which isn’t something most of us have lying around. Of course you will have to compromise as a higher coverage limit means a higher premium as well.
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