If you have problems paying up the entire sum on your auto insurance premiums at one shot, then the best policy would be the month-to-month auto insurance policy. It is easy to sign up for this policy as there is a low down payment or no down payment depending on the policy. Following this you would be required to pay monthly installments on the annual premium. You can either pay in three, six, or twelve installments.
Since the customer has the flexibility of monthly payments the strain on his or her finances is reduced and the customer is free and able to take better cover which they might not have been able to afford if they had to pay the premium as a lump sum. Also annual budgeting becomes easier for the customer since they don’t need to collect or take a loan for the lump sum payment. There is complete freedom in the case of the 12 month option, you can pay for cover as long as you see fit and stop the month you would like to change your provider or sell your car. There is no commitment and no binding fees.
The customer makes a down payment and follows up payments with monthly installments. The larger the initial down payment made, the lower the customers monthly installments. The customer stops paying the month he or she wishes to terminate the current insurance policy and follows up this requirement with a call or email to the insurance company intimating them to stop billing on the account.
Month to month auto insurance has no limitations and can be taken on the lowest liability insurance to the highest comprehensive cover depending on the customer’s requirements. As aforementioned the lower strain of coming up with the money for premiums can assist you in getting the right cover for your needs.
Cover and extent of cover you should consider
Liability insurance is the lowest form of insurance you can get and is mandatory in most states; liability cover pays for damage caused by you during an accident. The third party will receive compensation for damages to his or her health and vehicle. Collision insurance covers you from repair bills and medical expenses in the event of an accident. Non collision cover protects you from natural disasters like hail stones, flood, hurricanes, earthquakes and the like. Non collision cover also protects against damage caused by vandals or thieves.
Comprehensive cover covers you from almost any possible incident and is highly suggested by most experts. If you can afford it you should really consider comprehensive cover for your vehicle.
The extent of cover is a field where most customers are confused and either over or under insured. The extent of cover should be sufficiently above the state minimum value to cover any possible losses you may incur, yet not more than the current value of your vehicle.
This is the basic principle that you have to consider while insuring your vehicle and if you are unsure about what would be the ideal coverage, then you should either consult with your insurance agent or contact the auto insurance company directly and get your doubts clarified. If you over insure your vehicle then you would be at a loss and if you under insure you will not have adequate protection or coverage. Hence, this whole issue is a tricky thing and needs careful evaluation.
Deductibles can be set based upon your past driving history. The deductible factor in your policy is the amount you will have to spend from your pocket in the even of an accident. The higher your deductibles, the lower your premium will be. While this sounds like a tempting way to reduce your premiums; it’s only suggested for people who haven’t been in a car crash for at least the past 7 years, or else you could end up spending a few thousand over the few hundred you saved by increasing your deductible.
Shopping for insurance policies online
There are a number of websites that you can use to check on the present market scenario with regard to auto insurance. You may use auto insurance calculators to see how much your insurance coverage will cost you. When you shop online, you can compare quotes and then decide on what you want to take depending on the coverage they offer. The most important thing is to know what your state’s mandatory requirements. Your policy should cover the minimum required by the state as well as the additional coverage that you will need.
Gap Insurance And Totaled Car Insurance
If you have purchased your vehicle after availing a loan you will need a totaled car insurance and gap insurance. These are a must; otherwise you will end up losing a huge sum of money in the event of your vehicle getting totaled. Under such circumstances, you will need to have insurance to pay off the loan on your car. Gap insurance will take care of the difference in the total value of the car and the amount you owe on your vehicle.
Avail Discounts On Your Policy
Before you sign up for the policy you must negotiate and avail maximum discounts. There are a number of factors that are taken into consideration while insuring your car such as mileage driven, amount of loan on your car, condition of the car, driving record, gender, age etc. So, try and negotiate depending on whatever is in your favor. You can avail huge discounts by merely knowing the areas in which you can negotiate for discounts.
Finding A New Insurance Provider
A number of things have to be carefully considered before you find your new insurance provider. If you are unhappy with the coverage provided by your existing insurance provider, you might want to look for better options. Either way, you will be left with a number of options, but you have to make the right choice.
Although auto insurance is necessary or mandatory in most states, you need not end up paying too much money. On the other hand, there is no point in purchasing a policy that offers cheap and worthless coverage either.
So, the first thing to look for is a reliable insurance company that will assist you in gaining control over your life once again. It is up to you to do your own research and get to the bottom of the truth. You may take a look at the review sites or insurance forums to get some insight into what the company is offering.
Even while you read reviews, you must exercise caution. Most of the reviews come from reliable sources, but there are many that cannot be trusted.
It is important to determine if the company is stable and if the company has been in business for a long time, and if they settle claims quickly etc. Check out at least 5 companies before signing up.