Everyone wants affordable auto insurance. Therefore, it is wise to spend some time educating yourself to make intelligent decisions about your next auto insurance purchase. You do not need to be an insurance expert to understand the fundamentals involved in auto insurance, but a basic understanding of common terms will definitely help you make an informed decision. Too often people avoid all responsibility when it comes to buying their auto insurance—only to realize later that they have made a costly mistake.
An excellent way to start the auto insurance purchasing process is to look at the declarations page of your auto insurance policy. There you will find the policy’s expiration date, premiums, coverage, and limits. In addition, by selecting an independent insurance agent to shop the market for you, you will end up with better coverage and competitive pricing.
The Declarations Page
Policy Period – This is the specific time that the policy is valid. Some auto insurance policies have an annual renewal, while others have a six-month renewal. Do not shop for auto insurance with a declarations page that shows that your policy period has expired. That could cause you to be placed in a sub-standard market. Show your agent the current declarations page.
Vehicles – Your vehicles will affect your physical damage premium. Make sure that you give the agent the correct vehicle identification number of all of your cars. This is usually found on your declarations page.
Drivers in the Household – Every resident relative with a driver’s license should be listed on the policy unless they have other insurance.
Liability Limits – These are the limits for bodily injury and property damage insurance. This is essential coverage and not a smart place to cut costs. This portion of your policy pays benefits to the party that you may have injured in an auto accident. It also pays for the damage to their vehicle.
Physical Damage – This is your collision and comprehensive benefit. It is physical damage coverage for your automobiles. Your deductible selection will raise or lower the rate.
Ask your agent about discounts and options. Learn all that you can, and you can help make your auto insurance more affordable.