Last Updated on May 20, 2021 by MoneyVisual
We all know that we can’t predict what will happen in the future, as it is uncertain and unpredictable. The same applies to auto accidents, which can occur when you least expect it. Fortunately, you can prepare for such a possibility by getting comprehensive auto insurance. Auto insurance is an absolute must to protect yourself, your passengers and your vehicle.
Furthermore, when you obtain auto insurance, you enter into a legally binding agreement with your insurance provider in which you will be expected to pay a premium. Then, in return, your auto insurance provider will provide you with the coverage needed to cover any financial losses and damages that may occur through theft or an accident. Here, our focus will be on how you can save money on your auto insurance without losing any coverage.
Different Kinds of Auto Insurance Coverage
Many different types of coverage may be included in your auto insurance policy, with each having a different price point. For instance, body injury liability coverage is applied to injuries that the policyholder or designated driver cause to another party. Moreover, any family members, including yourself, that are listed will also be covered if you, or they, are driving someone else’s vehicle, assuming that you, or they, have permission to drive said vehicle.
Medical payments or personal injury protection (PIP) is a form of coverage that will cover any injuries that were incurred by the passengers in the policyholder’s vehicle as well as the driver themselves. As for property damage liability coverage, it is designed to cover damages that you, or someone who you permitted to drive your car, cause to another person’s property.
Collision is a type of auto insurance coverage that will cover damages to your vehicle caused by a collision with another vehicle, or an object; such as a telephone pole or a tree. In fact, comprehensive collision coverage will also pay for any damages caused by colliding into a deer, and will also cover damages caused by potholes.
As for comprehensive coverage, it essentially covers damages that resulted from grand theft auto, or damages that occurred by something other than a collision with an object or another car. For instance, it will cover damages caused by missile strikes, earthquakes, floods, vandalism, fires, explosions, riots, and contact with deer, birds, and other animals.
What’s more, glass coverage will cover damages caused to the windshield of your car, albeit some companies will also provide no-deductible coverage, which will also cover glass sunroofs, as well as rear and side windows. In regards to underinsured and uninsured coverage, it will cover any damages that are caused by either a driver that doesn’t have sufficient insurance to cover all of your damages or a completely uninsured driver.
As such, you, a designated driver, or a family member, will be reimbursed in the event of an accident or collision caused by an underinsured or uninsured driver. Finally, third party liability insurance will protect you in the event that an accident that you caused led to property damage, personal injury, or the death of another party. Interestingly, third party liability insurance is an absolute must in Canada if you wish to own and drive a vehicle.
Tips to Reduce Auto Insurance Costs without Coverage Loss
The first thing you should do to try and reduce your auto insurance costs is to try and find a reputable insurance company that provides you with all of the things that you require without having to pay an excessive premium. A good driving record will also help your cause, as well as being a safe driver that drives slowly, as doing so will reduce the chance of an accident occurring.
Purchasing an automobile that is insurance friendly will also help reduce your costs, and you may also want to consider taking a defensive driving course to improve your driving skills. Also, take the time to perform the necessary due diligence to find the best auto insurance coverage, as you only have one life to live and one family to protect.
Moving closer to your place of work may also help reduce the risk of accidents, which may subsequently also reduce your auto insurance costs, and you may also want to work on improving your credit score as well. Moreover, try and augment your deductible as well, and you should also compare different insurance costs before you commit to purchasing a vehicle.
You can also save money by buying your auto, as well as your homeowner’s coverage, from the same insurance company, and try and take advantage of low mileage rebates if you can. It also wouldn’t hurt to talk to your provider about a group insurance plan, as you may be able to save some money if you are eligible, and you should also try and seek out other discounts that y may also qualify for.
In addition, signing up for data tracking may also help reduce your auto insurance costs, and simply asking for a lower rate may actually lower your costs, as insurance companies want to retain as many clients as they can. You may also want to consider lowering extra limits, such as PIP, Med Pay, and UIM, as well as remove Loss of Use (i.e., Rental) as well as Comprehensive and Collision-which comprises physical damage coverage.