Purchasing auto insurance has never been easier than it is today. Anyone can go online and get comparative quotes in an instant. The buyer should be aware however, a quote provided online is not a firm quote unless the appropriate reports are run and the actual rating TIER is established. Even speaking with an agent may hurt more than help if you end up with an agent that cares more about a sale than the proper underwriting requirements. If the buyer does not ask the right questions, then more than likely they will end up disappointed at the time of a claim. Check out the following tips:
1. Uninsured Motorist/Property Damage – this coverage pays for damages to your vehicle if an at-fault driver (the other guy) doesn’t carry high enough limits on their property damage liability or doesn’t have any insurance. If you have collision coverage on your vehicle, it will pay in this situation – making the coverage redundant. If you do not have collision coverage on your vehicle, only buy a limit close to the value of your vehicle (you cannot make money on this coverage).
2. Uninsured Motorist/Bodily Injury – This coverage pays for your injury expenses if the at-fault driver (the other guy) does not carry high enough limits or has no insurance. This is where the attorneys get their money. Without this coverage, it is unlikely that a personal injury attorney will take your case. Furthermore, this coverage will pay for pain and suffering unlike Medical Payments or Health Insurance which does not.
3. Medical Payments – Buy as much of this as you can afford. Medical Payments will do more for you and much quicker than bodily injury liability or health insurance. There is no deductible and the limit applies to you and resident relatives each – not combined. This coverage follows the driver, which means it will pay for injuries sustained while walking, riding in another vehicle or on public transportation. It will also pay if you are out of your resident state.
4. Property Damage Liability – This pays for damage you cause to other vehicles or property. Never buy less than $50k limits. There are very few cars on the road today that cost less than $25k. And, what happens if you hit more than one car, or run your car through a house?
5. Defensive Driver Discount – Always tell your agent that you have taken a course. If they require proof, take a course online for about $20 and print the certificate. Most companies will allow this discount for at least two years before asking for a new certificate. You can save about $50 per 6 month policy for two years. That’s $200 for a $20 investment.
With the amount of information online today, buyers should be experts with most any purchase.
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