Money Lesson 22 - Auto Insurance [Page 2]

Things To Consider When Buying Auto Insurance

1. Save money by comparison shopping

As with anything else you buy, what seems to be the same product can have different prices from different companies. You can save money by comparison shopping.

2. Price should not be the only consideration factor

A low price is no bargain if an insurer takes forever to service your claim. Research the insurer's record for claims service, as well as its financial stability.

3. Go beyond the basics

Most states require only a minimum of auto-insurance liability coverage, but you should look for more coverage than that.

4. Demand discounts

Insurers provide discounts to reward behavior that reduces risk. Remember to ask for this discount.

A Note About Claims

1. At claims time, your insurer isn't necessarily your friend

Your idea of fair compensation may not match that of your insurer. Your insurer's job is to restore you financially. Your job is to prove your losses so that you get what you need.

2. Prepare before you have to file a claim

Taking the time now to review the steps you should follow after an auto accident will help reduce the anxiety surrounding the incident and avoid costly and time-consuming mistakes.

Before You Have a Claim Be sure you know the answers to these questions before you have to file a claim

How much liability insurance do you have? This coverage pays for damage you cause to another vehicle or injuries to other people.
Does your state have no-fault insurance? What coverages does it provide?
If you have collision and/or comprehensive coverage, what is your deductible (the amount you've agreed to pay out of your own pocket if you suffer a loss)?

Back To Page 1 of Auto Insurance

Money Lessons


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