March 15, 2013
Automobile insurance is in California, but the minimum coverage requirements are not necessarily adequate. You should review your policy limits with your insurance agent. Having an accident without proper coverage is a fast way to create a huge financial strain.
Select the right insurance. Many consumers choose to buy the minimum coverage when it comes to auto insurance , but that can be a costly mistake. For example if you get in a car accident that causes $15,000 in damage to the other vehicle and your minimum coverage only covers $10,000 in damage, you’ll be on the hook for the additional $5,000. It’s much better to pay a few extra dollars per month and obtain auto insurance that will cover the entire cost of an accident.
Disclose all the facts. Insurance companies hate it when you withhold information on your auto insurance application. Sooner or later, they will dig up old speeding tickets or auto accident and drive your rates up much higher than if you had been honest about your driving history in the beginning. The way insurance companies look at it, if you’re hiding old driving infractions, you’re not trustworthy to begin with, and that makes you a higher insurance risk, which elevates your insurance rate.
Getting a DUI. If you’re arrested for drinking and driving you’ve got a ton of problems, but one of the long-lasting ones is the added cost to your auto insurance. Studies show that a DUI conviction can raise your rates for years to come (perhaps 10).
Check for eligible discounts. Auto insurance companies are open to cutting your insurance costs, but you have to be willing to ask for it. If you have a homeowner’s policy with a major insurer, ask for a discount for “bundling” your policy with an auto policy. If you have anti-theft devices in your car, make sure to mention that to your insurer, because that should also get you a discount. If you have two cars you’re looking to insure, demand a multiple-vehicle discount. There are usually discounts available, so all you have to do is ask.
Payment options. Insurance companies love to get their money up front–so much so that they’ll offer you discounts of 20% or so if you pay your entire annual costs in one big payment. Most consumers don’t like the idea of parting with, say $600, at once when they can have monthly payments that are more manageable in household budgets. But if you could pay $500 up front, you’d be done with your auto insurance payments for the year – and you’d save $100 in the process.
For personal assistance regarding your automobile insurance please call us at 1-800-585-1776. We have been helping clients for over 20 years.