When it comes time to insure a car you have many things to think about. The type of insurance you will need, deductible amounts and potential deductions are just a few things that will play into the decision making process. If you find you are in need of car insurance here are a few tips for getting started and achieving the best coverage possible.
The first thing to consider is your car, if you are in the market for a new car and insurance costs are a concern you will want to avoid some of the high risk vehicles on the market today. Each year insurance companies put out a comprehensive list of what they consider high risk recently on the list was:
• Cadillac Escalade
• GMC Yukon
• Dodge Charger
• Chevy Camaro
These are some of the most stolen vehicles in the United States today and therefore come with a higher insurance price tag. Of course, if you are planning to purchase a vehicle such as this out right, without financing, you will only be required to carry state minimums, which will be cheaper.
If you already own a vehicle on the most stolen list there are still a few things you can do to lower your insurance cost. Installing anti-theft devices is a great start to shaving costs and if you will avoid a lot of extra aftermarket parts and chrome, the cost will stay reasonable. Talk to your insurance agent about approved devices before you spend the extra money on alarms and such from the dealer.
A unique car insurance need is the classic car, some of these older vehicles are worth ten times or more what they sold for originally which can lead to some interesting insurance issues. Most owners of classic cars are pretty diligent to take excellent care of their vehicles, but covering it with insurance may bring up things you have never considered.
• Proof of Valuation – You may know that your classic car is worth $25,000 but your insurance company is likely to ask for credible proof. Make sure you and your insurance company is on the same page when it comes to the value of your classic car, or you could lose big time in case of a claim.
• Storage – Where and how you protect your classic car will have an impact on your classic car insurance. The more secure and protected your vehicle, the cheaper your car policy will be.
• Insurance Company – For average insurance you can generally shop your insurance around at several companies, however when you are talking about classic cars you may be better served to choose a company that specializes in this type of insurance for example haylor.com/personal/auto-motorcycle/
Other than the type of vehicle you will be covering is the issue of what type of insurance you will need. If you have financed this car, you will more than likely need to carry full coverage insurance. You should talk over the required deductible with your finance company; generally, it will be in the $500-$1000 range. Additional decisions you will have to make:
• Coverage Amounts – There is a basic level of coverage that most insurance companies offer, what is known as 25/50/20. This is $25,000 in single person medical coverage with a $50,000 limit per claim and a $20,000 property damage limit.
• Underinsured/Uninsured – in nearly all insurance quotes there will be a provision for underinsured or uninsured motorists. This is almost always never required by your finance company and opting out can save you a lot of money on your insurance bill. This is of course a personal decision; you may want to keep it as an optional part of your coverage.
When it comes to how to insure a car there are several things you should keep in mind. Before you begin checking around for insurance quotes, it is a good idea to make a checklist of the above issues that pertain to your situation. Whether you are insuring a new, old or classic car you want to get the best price possible, and knowing your options is the easiest way to do so.