Are you tired of scraping the payment together to insure your vehicles every month? You’re in the same situation as many other drivers in California. You have multiple auto insurance companies to buy insurance from, and though it is a good thing to have multiple companies, so many choices can make it hard to compare rates and find the lowest cost auto insurance.
It’s smart to compare rates on a regular basis because insurance rates go up and down regularly. Even if you got the best deal a couple years back you may be paying too much now. There is too much inaccurate information about auto insurance online, so we’re going to give you a lot of great tips on how to reduce your auto insurance bill.
Finding the best car insurance rates in San Jose is easy if you know what you’re doing. If you have insurance now or need a new policy, you will benefit by learning to reduce the price you pay while maintaining coverages. California drivers just need to know the most effective way to compare price quotes online.
Auto insurance companies don’t necessarily list all available discounts in an easy-to-find place, so we break down some of the best known and the more hidden discounts you could be receiving. If they aren’t giving you every credit you deserve, you are throwing money away.
It’s important to understand that many deductions do not apply the the whole policy. Most cut specific coverage prices like comprehensive or collision. Even though it may seem like adding up those discounts means a free policy, it doesn’t quite work that way.
Having a good grasp of a auto insurance policy can be of help when determining the best coverages for your vehicles. Auto insurance terms can be ambiguous and nobody wants to actually read their policy. Below you’ll find typical coverage types found on the average auto insurance policy.
Comprehensive or Other Than Collision – Comprehensive insurance pays to fix your vehicle from damage that is not covered by collision coverage. A deductible will apply then your comprehensive coverage will pay.
Comprehensive insurance covers claims such as theft, vandalism, damage from getting keyed and a tree branch falling on your vehicle. The maximum payout you’ll receive from a claim is the ACV or actual cash value, so if the vehicle is not worth much consider removing comprehensive coverage.
Liability car insurance – Liability coverage can cover injuries or damage you cause to a person or their property that is your fault. Coverage consists of three different limits, bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. You might see policy limits of 50/100/50 that means you have $50,000 bodily injury coverage, a per accident bodily injury limit of $100,000, and a limit of $50,000 paid for damaged property.
Liability can pay for claims such as pain and suffering, medical services, repair costs for stationary objects and attorney fees. The amount of liability coverage you purchase is your choice, but buy as much as you can afford. California requires minimum liability limits of 15,000/30,000/5,000 but you should consider buying more liability than the minimum.
UM/UIM Coverage – Uninsured or Underinsured Motorist coverage protects you and your vehicle from other drivers when they are uninsured or don’t have enough coverage. It can pay for hospital bills for your injuries and damage to your vehicle.
Since a lot of drivers have only the minimum liability required by law (which is 15/30/5), it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage is very important.
Collision – Collision coverage will pay to fix damage to your vehicle resulting from colliding with another vehicle or an object, but not an animal. You have to pay a deductible then your collision coverage will kick in.
Collision insurance covers claims like crashing into a ditch, rolling your car, sideswiping another vehicle, hitting a mailbox and colliding with another moving vehicle. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from lower value vehicles. You can also raise the deductible in order to get cheaper collision rates.
Medical costs insurance – Personal Injury Protection (PIP) and medical payments coverage pay for short-term medical expenses for things like funeral costs, EMT expenses, prosthetic devices, dental work and doctor visits. They are often used in conjunction with a health insurance policy or if you are not covered by health insurance. Medical payments and PIP cover you and your occupants and will also cover being hit by a car walking across the street. Personal Injury Protection is not available in all states and gives slightly broader coverage than med pay
More tips and info about auto insurance can be found at the California Department of Insurance website. Consumers can download brochures, find out which companies have the most complaints, and view agent and company licensing information.
We just presented some good ideas how to get a better price on auto insurance. The most important thing to understand is the more times you quote, the higher the chance of saving money. Consumers could even find that the biggest savings come from some of the lesser-known companies. Some small companies can often provide lower rates in certain areas than the large multi-state companies such as Progressive and GEICO.
Discount auto insurance is available on the web in addition to many San Jose insurance agents, so you should compare both in order to have the best chance of saving money. Some auto insurance companies do not provide the ability to get a quote online and many times these regional insurance providers only sell through independent insurance agents.
When buying insurance coverage, never buy lower coverage limits just to save a few bucks. Too many times, an insured dropped comprehensive coverage or liability limits and discovered at claim time that the savings was not a smart move. The aim is to buy enough coverage for the lowest price.