Why Auto Insurance is Important

Many of us need automobiles to get from place to place, so we all know how useful they can be while also recognizing the fact that driving an automobile is dangerous. You might be careful in obeying traffic laws, but you never know when someone else will not and be the cause of an accident that involves you. Then again, mistakes do happen and you never know when something may occur that you will be at fault. These are reasons why it is important to have auto insurance.

However, auto insurance covers much more than just collisions. There are times when certain acts of nature may occur such as a hail storm or a falling tree that may cause damage to an automobile and it would cost too much money out of pocket to fix these things. The insurance will sometimes charge a small deductible depending on the type of accident that has occurred, but the cost is minimal compared to what it would cost to fix an automobile on your own.

A world without auto insurance

Just imagine what a world without auto insurance would be like. First of all, people who are at fault in accidents would be paying money to the accident victims out of their wages and other income for years to come. Those who have been injured in an accident at no fault of their own are entitled to have their medical bills, vehicle repairs, and other expenses paid by the insurance of the person who was at fault. If the person at fault does not have insurance, then they do have to pay those expenses out of their pocket. Many people have been known to lose major assets because they did not pay the minimal cost of having auto insurance to prevent such losses.

Then there are those natural disasters that we have absolutely no control over. There have been many overturned trees from high winds that have decided to fall the direction of someone’s brand new car. There have also been the occasional hail storms throwing golf ball-sized hail out of the sky at the many automobiles below. This can cause thousands of dollars in damage that goes beyond the scope of what most individuals can afford straight out of their pocket.

So why is it important?

It is probably already quite obvious to see why having auto insurance is very important. If not, then look at it this way:

o You are protecting your automobile, one of the largest investments you make in your life.

o You are able to pay for medical bills if an accident occurs.

o You don’t have to feel the biggest part of an accident-related lawsuit.

o Protects assets that you’ve worked hard for from being lost due to a lawsuit.

o Protects you from those motorists that may not have insurance of their own.

o Not only pays for accidents and weather-related incidents, but also pays for vandalism and theft.

o You know you are protected every single time you hit the road.

However, this brings about another point. It is very important that you review your auto insurance policy and make sure you understand all of it since every policy is different. Depending on a person’s financial situation, they may choose a certain type of coverage over another for a variety of reasons. This can be because they want to cut premium costs because they simply cannot afford higher coverage or another reason that they find they don’t need extensive coverage. These things should be considered carefully because you never know when one accident may be the event that causes you to lose many of your assets in order to satisfy the cost of a lawsuit settlement.


Easy Tips To Lower Your Auto Insurance

We all have to have auto insurance and in most states it is not only a necessity but it’s the law. The truth is, being involved in a traffic accident is bad enough but being involved in one and not having auto insurance could break the bank also. Having insurance on your vehicle however should also not be a reason for breaking the bank. Here are some easy tips that you could consider that may help in getting you the best rates on your auto insurance.

Change Insurance Carriers

Switching insurance companies is a good choice if you have outstanding credit. However, if your credit is less than desirable, you probably should stay with your current insurance provider. The fact is consumers who have bad credit can pay twenty percent to fifty percent more for their premiums than others who have good credit.

If you are considering switching your auto insurance from one carrier to another, you should carefully analyze the other companies. Talk to your family members or friends about their experiences with other companies that your considering. Ask them things such as did they ever make a claim and how did that process go for them.

Do your due diligence on your prospective companies by accessing information gathered on them through the Better Business Bureau. You can also contact your state to check on any complaints that may have been files against insurance companies. If you find that a company has a grocery list of issues it would be best to pass and to continue your search. You do not need to hassle with a difficult company when it comes to filing a claim with them.

Use Discounts to Your Advantage

Switching auto insurance providers could save you hundreds, but it is also important to know the advantages of staying with your current company. Your insurance company, for instance, may give you a loyalty discount if you have been with them a year or more. They may also offer you discounts for having a good driving record, for operating your vehicle with certain safety equipment, being a senior citizen and for completing a course for safe driving to name a few.

Consider Raising Your Deductible

When you raise your deductible you will have lower premiums to pay. However do not opt for this if you think you will have trouble paying the deductible should a claim arise. You could set aside some money for this higher deductible in a savings account as long as you don’t use it for something else. Once you determine that you can handle the higher deductible then it would be a safe option to use in order for you to save some money on your premiums.

Consider Dropping Some Coverage

If your current vehicle you are driving has higher than average miles on it or is older than 5 years old, then you could consider changing your comprehensive and collision coverage and opting for liability insurance coverage only. You could be paying more on your premiums than what the current worth of your vehicle is. It is also important to consider that if your vehicle is stolen you will not get anything from your insurance provider for it. You will also have to pay one hundred percent of any type of repairs if your involved in an accident and it was shown you were at fault. Having cheaper auto insurance is better for your long-term savings; however do not underestimate the risks involved and how this may hurt you also.