Saving money on insurance coverage is challenging for beginners to comparison shopping online. There are so many options available that it can quickly become a big hassle to locate the lowest price.
Companies that sell car insurance do not list every discount very well, so we break down some of the best known and the more hidden savings tricks you should be using.
Consumers should know that many deductions do not apply to all coverage premiums. Most only cut the cost of specific coverages such as liability and collision coverage. So even though they make it sound like all the discounts add up to a free policy, auto insurance companies aren’t that generous.
Companies who might offer these money-saving discounts include:
It’s a good idea to ask each insurance company which discounts you may be entitled to. Some discounts might not apply everywhere.
When it comes to choosing proper insurance coverage for your vehicles, there is no one size fits all plan. Your needs are not the same as everyone else’s.
These are some specific questions might point out if your insurance needs might need an agent’s assistance.
If you’re not sure about those questions, then you may want to think about talking to an insurance agent. If you don’t have a local agent, complete this form.
Learning about specific coverages of a insurance policy helps when choosing the right coverages at the best deductibles and correct limits. The terms used in a policy can be ambiguous and coverage can change by endorsement.
Medical payments coverage and PIP
Personal Injury Protection (PIP) and medical payments coverage provide coverage for immediate expenses such as EMT expenses, rehabilitation expenses and hospital visits. They are often used to cover expenses not covered by your health insurance plan or if you lack health insurance entirely. It covers both the driver and occupants and also covers being hit by a car walking across the street. PIP is not universally available and gives slightly broader coverage than med pay
Collision protection
Collision coverage covers damage to your Cougar resulting from colliding with an object or car. A deductible applies and then insurance will cover the remainder.
Collision coverage pays for things like damaging your car on a curb, colliding with another moving vehicle, hitting a mailbox, rolling your car and crashing into a ditch. Collision is rather expensive coverage, so you might think about dropping it from lower value vehicles. Another option is to increase the deductible to get cheaper collision coverage.
Uninsured/Underinsured Motorist coverage
Uninsured or Underinsured Motorist coverage provides protection when other motorists either are underinsured or have no liability coverage at all. Covered losses include medical payments for you and your occupants as well as your vehicle’s damage.
Since many drivers carry very low liability coverage limits, their liability coverage can quickly be exhausted. So UM/UIM coverage is important protection for you and your family.
Liability insurance
This will cover damage or injury you incur to other people or property in an accident. It protects YOU against claims from other people, and doesn’t cover damage sustained by your vehicle in an accident.
It consists of three limits, per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have liability limits of 25/50/25 that means you have $25,000 in coverage for each person’s injuries, a total of $50,000 of bodily injury coverage per accident, and a total limit of $25,000 for damage to vehicles and property.
Liability can pay for claims like structural damage, repair costs for stationary objects, medical expenses and bail bonds. How much liability coverage do you need? That is up to you, but it’s cheap coverage so purchase as high a limit as you can afford.
Comprehensive coverage
Comprehensive insurance coverage will pay to fix damage that is not covered by collision coverage. A deductible will apply and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage protects against claims such as theft, damage from a tornado or hurricane and hitting a deer. The most a insurance company will pay at claim time is the market value of your vehicle, so if the vehicle is not worth much it’s not worth carrying full coverage.
When trying to cut insurance costs, never buy less coverage just to save a little money. There have been many cases where an accident victim reduced physical damage coverage and learned later that saving that couple of dollars actually costed them tens of thousands. The aim is to buy the best coverage you can find at a price you can afford while not skimping on critical coverages.
Cheaper 1990 Mercury Cougar insurance can be found online as well as from independent agents, and you need to comparison shop both so you have a total pricing picture. Some companies don’t offer online quoting and most of the time these small, regional companies sell through independent agents.
We’ve covered quite a bit of information on how to get a better price on insurance. The most important thing to understand is the more rate quotes you have, the higher your chance of finding lower rates. You may even find the lowest priced auto insurance comes from a small local company.
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