Auto insurance is a major expense and over your lifetime you will end up spending tens of thousands of dollars. Most people waste a lot of money on auto insurance because they don't have an idea of what the policy is and what they actually really need. They often just call up a broker and have them select a plan for them. What they don't know is that there may be extra fees a coverage in their policy that they don't really need. Knowing this can help you keep costs down on auto insurance. Look out for the following coverage when looking over your existing or a new car insurance policy.
Auto liability insurance protects you from getting sued in the event of an accident. It is very important to have this feature because when you get in an automobile accident there are often unforeseen injuries that many people would like to try and sue you for as damages. A good amount of coverage to have just in case you get into an accident is at least double your assets. If you don't have much in assets such as not owning a home that doesn't mean you don't need this coverage. One asset you do have that you may not be aware of are your future earnings. A suit may be brought against you for your earnings in the future or you may have a garnishment placed on your paychecks. Having at least $50,000 is a good amount to protect you for property damage which is the damage caused by your vehicle hitting another.
Most states require having a certain amount of auto insurance to be legally driving. There are still uninsured motorists on the road that make it dangerous for everyone. If you do get in an accident with one of these irresponsible people than you want to make sure you are covered for medical expenses. You may not need this feature if you already have a comprehensive medical plan and disability insurance. If this is something you already have then omit this from your current coverage because it is not necessary and is duplicate coverage. One thing to consider though is if you do drop this coverage, passengers in your vehicle aren't covered unless they have their own medical and disability insurance.
Deductibles are one of the easiest ways you can lower your monthly premiums. This makes it so that if you only have minor damage after an accident you can just pay out of pocket, rather than submitting a claim. If you have to put in a claim from getting in an accident your premium may increase. A decent amount to have your deductible at for your auto insurance policy is around $500 to $700. If you avoid getting in an accident throughout the year, you will save a great deal of money in the long run than if you have to submit a claim. If you have an older car that doesn't have a very high value than you may consider getting rid of your comprehensive and collision coverage. If you end up in the situation of getting in an accident and you determine that it is not worth paying the deductible because the damage is less than your deductible than you don't need this feature.
Author Resource:
Westly has been writing articles for many years in a vast array of topics and not only does he write about online business, diet and health but also kitchen supplies seen at Kitchenaid Mixer Sale and work clothing seen at such as 12 Cup Coffee Maker .
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")