Getting into a car accident is an unpleasant situation, especially when your car insurance is not offering you the much needed coverage. It is important to know that the type of vehicle that you have will directly affect your insurance rates. What this means is that if you own an expensive car which requires high costs when it has to be repaired, the insurance company will pay more if repairs are necessary. If the car is known to be safe and offers a high level of protection for the people inside, this means the insurance company won’t pay that much to get it fixed.
There is a general rule in terms of auto insurance which says that if you pay more, you save more. If you are willing to spend more money just to be safe, make sure you go for optional coverage like rental reimbursement, roadside assistance, comprehensive coverage, gap coverage and even motorist coverage. The most expensive one among the above mentioned is usually the comprehensive coverage but even so it’s still about a third of what you pay for liability coverage or half of collision coverage.
It’s best to keep in mind that insurance rates vary from one insurance company to the other, which is why it’s highly advisable to shop around before making a final decision. Another reason for doing so is because you can benefit from various discounts offered by some of the insurance firms. You can get a discount if you decide to make the payment in full or if you opt for electronic payments. Other discounts can come from car safety features and your driving record.
Another tip that you might want to take into account is to lower your insurance premium with higher deductibles. The insurance firms establish prices according to how much money they think the client is able to pay. For this reason, if you agree to pay a larger share of the damages by increasing your deductibles, then the insurance firm will be aware of the fact that in case of an accident they won’t pay that much to fix your car. As a result, they are likely to offer you a more affordable premium.
Regardless of the type of insurance and amount of deductible you agree to pay, it’s always best to take your time and find the right offer for you. Don’t make this decision in a hurry as you might end up paying a lot more than you should have in case of an unfortunate accident.