What’s one of the first things you do when you buy a car? You insure it without thinking twice about what you’re doing. It’s the law, right? All cars need to have insurance, so it’s just something we have to do.
Needless to say, the world of car insurance is far more complicated than you might expect. It’s not a simple case of picking an insurance provider from a list of different companies. There are loads of things to consider, and plenty of important information every car owner should know about.
This brings us to today’s article, where we will tell you everything you need to know about car insurance. Have a read of all the points below before you go ahead and insure your car:
Older Cars Might Be More Expensive To Insure
It’s natural for someone to try and save money by purchasing a used car. As we mentioned in our piece here http://www.vdubnews.com/buying-second-hand-car, the price of a new car can go down as much as 20% in less than a year. So, there are great savings all around, right?
Well, not always. You see, some older cars are actually more expensive to insure than newer models of the same/similar cars. This is because they potentially pose a greater risk than the newer car models. Why? Because new cars are updated and brought out with the latest and greatest safety features. This minimizes the chances of an accident occurring, which insurance providers see as a big positive. The less chance there is of someone crashing their car, the cheaper it will be to insure.
Insurance Prices Change Every Year
A lot of new drivers believe they only need to take out car insurance once during the time they own their car. Every time you get a new car, you find insurance for it, that’s pretty obvious. However, a lot of people fail to realize that insurance prices change all the time, normally on a yearly basis. Contracts also run for a year at a time, meaning you could end up paying way more than you need to for your insurance.
You see, you could pay your insurance provider a set fee for your insurance, and they’ll automatically renew you on the same contract if you don’t mention otherwise. There could well be another provider out there that released a much cheaper tariff that saves you loads of money. So, the best thing to do is shop around and compare prices every year. As you can see here https://www.nerdwallet.com/insurance/compare-car-insurance-rates, there are loads of comparison tools that help you do this. Don’t get sucked into paying more and getting less for your money.
Insurance Providers Aren’t Fully On Your Side
Having a good insurance provider means you’re protected when things go wrong. If your car breaks down, then some providers offer breakdown cover to help you get towed to a garage and pay for repairs. The same goes for accidents; your insurance can cover any repairs to a damaged vehicle if you get hit.
However, it’s very important to know that your insurance provider is never fully on your side. Think about it, you pay them for their service, and they really don’t want to pay you any money at all. The more they pay you, the less money they make. Like it mentions here https://www.bohnlaw.com/san-jose-car-accident-lawyer/, you have to remember insurance companies are a business. It’s in their best interests to make as much money as possible, and to do this they want to cut expenses. So, if you end up in a serious accident that wasn’t your fault, they won’t give you as much compensation as you deserve. They’re not going to cover medical expenses for injuries or help pay for all your car repairs. They want to reduce their payout as much as possible, so bear this in mind if you ever end up in a serious accident. Don’t solely rely on your insurance provider to assist you, get the right legal guidance instead.
You Must Be Insured To Drive Any Car
This is a fairly obvious piece of information that most people already know. However, I’m including it because it’s a) very important, and b) there are some key things to go through here. For one, just because you have insurance for your car, that doesn’t mean you can go ahead and drive someone else’s car – even if they’ve got insurance as well. If you want to drive someone else’s car – say your partner’s – then you need to go out and get insurance for that as well.
Now, some insurance policies are family plans which cover you and your family on multiple vehicles. Some people believe you can save money with this, but that’s only the case if you and your family swap cars all the time. If you have a child that drives your car, so sometimes you drive your partners, and your partner sometimes drives yours, then it makes sense to get a multi-car, family oriented insurance plan. For a lot of families, they will simply add their child to one of the parent’s insurance plans. You can find tips on how to do this here https://www.nytimes.com/2017/06/23/your-money/auto-insurance/.
Safer Drivers Get Better Insurance Quotes
It’s well-known that many factors contribute to your insurance quote. Age, gender, driving experience, car type, and more, all factor into your quote. But, one thing that people tend to neglect is how safe you are as a driver. Safer drivers get cheaper quotes because they’re seen as less of a risk.
People that rarely get into accidents will have a way cheaper insurance premium than those that have been involved in one. My advice is to take a look at the tips here http://kidshealth.org/en/teens/driving-safety.html and learn how to be a safer driver. Avoid accidents on the roads, and you will save loads of money on car insurance in the future.
On that note, we’ve come to the end of this car insurance guide. Hopefully, it’s opened your eyes to this topic, and you now know more about it.