in

3 Tips to Get You the Most Suitable Car Insurance

ADVERTISEMENT

Taking 3 minutes to read this article, you would save big money on car insurance. You may follow your parents or friends to buy car insurance. However, due to different cars and different financial situations, there are a lot of options. Which one is suitable for your car? Let’s take the following 3 steps to figure it out!

1. Get to know the fundamental types of car insurance

ADVERTISEMENT

There are 3 types of car insurance which include Liability insurance, Comprehensive insurance, and Collision insurance.

Liability is legally enforced. In case of an accident that is your fault, let’s say if you have injured someone or caused property damage, the Liability can cover the cost. This is a basic type of insurance that everyone needs.

Comprehensive covers all kinds of risks not resulted from a collision. For example, if your car gets hit and destroyed by flashlight, then the Comprehensive can cover your repair cost.

The last one is the Collision Insurance, the key feature of which is that it doesn’t matter whose fault it is. It can cover all the cost of repairs to your car, without considering whether it is your fault. This type of insurance can show its value when the perpetrator can’t afford the compensation for the repairs. Maybe his liability insurance can’t cover your loss, maybe he doesn’t have any insurance at all.

2. Max out Liability insurance and consider buying Comprehensive insurance

Under the Liability insurance category, there are 3 types of insurance: Personal Injury, Total Injuries per Accident, and Property Damage. Generally, the max Personal Injury is $250,000, the Total

Injuries per Accident is $500,000 and the Property Damage max is $100,000. Just max the liability. On the one hand, it won’t increase your insurance premium so much, on the other hand, the max Liability insurance can cover the utmost risks for you. When your Liability Insurance can’t cover the cost, you may face the possibility of being sued or losing the job.

3. Get multiple quotes from multiple car insurance companies before figuring out the optimal choice

Don’t forget the car insurance industry is highly competitive. You should take advantage of it! Different insurance companies offer different highlights and attractions. Get a thorough understanding of the contracts before you. You should not miss every term and clauses as well as every number. Try to use the calculator to figure out the best choice.

Here is my advice. You should pay a 6-month premium rate instead of the monthly rate. Despite different policies, it may help you save a lot of money. More than that, another variable that determines your premium is driving history. If you don’t have an accident at all, you will enjoy a lower premium. The long history of no-accident can save you big money.

 

ADVERTISEMENT

What do you think?

Written by Debra Strauss

Debra, a culinary mother, is a three-child mother who graduated from the Chinese University of Hong Kong with a bachelor's degree in economics and Chinese.

Debra loves living and sharing and is currently working full-time on article writing.