It is a wise investment to have your car insurance uninsured. You read that right. A coverage they term to as uninsured car insurance. There are a lot of things to be considered when choosing a car insurance company, not to mention considering the laws in the state of your current residence. What are the things that should be clear in your contract?
Liabilities- Although this varies from state to state, the average minimum liability is within the range of $20,000 to $25,000. Other states require a separate liability coverage for the insured driver, his car and occupants and the driver of the other vehicle involved. These, including medical bills will add up to $40,000, aside from the $15,000 for bodily damages necessary for property repair of the victim.
Discounts- Car insurance companies have different discounts designed to attract potential clients. Availing of such will mean a cut in your premium so take advantage of it. An example under this category is the good driver discount. The car insurance company takes into consideration your driving history and if they see that you were an obliging citizen, you will be rewarded with big discounts.
Your age will also play a big role in availing of discounts. Drivers at age bracket of 25-40 usually are considered “careful drivers’ by car insurance companies. They are least to be involved in car accidents and unlike teenagers, they don’t drink and drive.
You can also avail of other discounts such as security (by installing anti theft devices), safety (by installing seatbelts and airbags), low mileage (if your odometer registers less than 35 miles in a day), low profile auto (as long as you don’t own limited edition sports car) and the senior, military and student discounts.
Insurance Coverage- This category should be understood by you clearly before you go signing a contract. Put in mind that a contract is something that will bind you to certain rules and regulation that you ought to follow unless you want to be sued of breach of contract. The coverage of your car insurance will depend on the agreement between you and the car insurance company. Consider worst case scenarios when deciding how much coverage you need.
What the car insurance mean when they say that you need uninsured insurance for your car insurance is in case of a hit and run accident, the uninsured car insurance insures the insured driver that he is safe from paying his bills. This is because his car insurance company will have to shoulder everything from repair to the damages in his property to his medical bills.
Understanding your car insurance will be for your advantage. With the economy in recession, maximizing your money’s worth is something very practical these days. When you want to save some of your hard earned money, it doesn’t mean compromising your car insurance. It only means availing of the car insurance company’s services that you need. It is separating the needs from wants, the practical from the impractical, for your benefit.
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