One of the best ways to save on monthly payments is with low cost car insurance. In today’s economy, saving on car insurance may actually be a necessity for many families, but what do you give up to save on car insurance? See what you can save now with our FREE car insurance calculator!
Is it possible to get enough coverage to protect your assets in the event of an accident and without paying too much for insurance? It pays to shop around for auto insurance and the internet is a great place to start. Get started today for FREE with our ZIP code search tool!
Using a Car Insurance Calculator
Car insurance calculators are invaluable when searching for the lowest price on car insurance. Some car insurance premium calculators are owned by a single insurance company and provide your exact cost for insurance with their company.
Other car insurance calculators make quotes available from a variety of insurance companies to allow a comparison. A good calculator will provide quotes from numerous car insurance companies for price comparisons.
Keep your Contact Information Confidential
Many but not all car insurance calculators ask for your name, address and phone number as well as your e-mail address. If you don’t want to give out all your contact information, use a car insurance calculator that only requires your zip code. Insure confidentiality and avoid spam and telemarketing.
Keep your Personal Information Confidential
Some car insurance premium calculators ask for specific lifestyle information. These questions can seem very invasive if you have already given your contact information. There are calculators that inquire about your marital status, number of children, driving record, even the distance you drive your car, and where you drive each day.
They may even ask questions about your health and whether you have health insurance. If you are not comfortable answering these types of questions online, in conjunction with your contact information, use a car insurance calculator that only requires your zip code.
What to Look For in Car Insurance
While reducing costs is important, it is even more important to have sufficient coverage. You need to consider how much you could be liable for if there were an accident. You could be facing medical bills as well as car repairs.
Make sure you have enough liability insurance to cover both the hospitalization of people without medical insurance and totaled luxury cars. Also, consider the value of your car, and your need to have transportation while it is in the shop. Extensive body work could take months.
Some car insurance companies offer a loaner car until yours is repaired. These features cost a little more, but can really pay off if you need them.
Advantages of a Local Agent
Some of the companies you find on line may have an agent in your area, while others do not. There are a few advantages to having a local agent, though it is not necessary.
Many people are quite satisfied with their distant insurance companies, even if there is not an agent for them in hundreds of miles. Other people though, prefer having an agent in town which they can make payments to in person and call in the event of an accident.
Making payments in person may seem cumbersome, but it can lead to handy features like a courteous reminder call if you are late on your payment, and perhaps a little more grace before your payment is considered late. It can also be invaluable to have a friendly agent on your side in the event of an accident.
Many people enjoy having a working relationship with their agent, and find it very helpful. Most companies do have agents throughout the United States, while others are regional. If your company has local agents it is a good idea to get to know them.
Seven Types of Car Insurance
There are seven different types of car insurance. When choosing between them, your budget will be a major factor but so will your needs. Liability insurance is required by law, but if you are still making payments, you will be required to have collision, and perhaps gap insurance.
The other types of insurance are optional but may be a good idea depending on your situation.
- Liability Insurance
- Collision Insurance
- Comprehensive Insurance
- Uninsured Motorist Protection
- Medical or Personal Injury Protection
- No-Fault Insurance
- Gap Insurance
Liability Coverage
Liability car insurance covers damage to other cars and injuries to other people in the event of an accident. It does not cover any damage done to your car or your injuries. It only pays if the accident is your fault.
If the accident is ruled to be the fault of another driver, their insurance will cover your injuries and damages.
Liability insurance covers:
- Damage to other people’s vehicles if you are at fault in the accident
- Medical bills for people who may be injured in an accident where you are at fault
- Damage to the property of others in an accident that is your fault
Each state requires a minimum amount of liability insurance, but would that be enough to cover the potential injuries and damages of a serious freeway accident? Considering rising health care costs and the price of new cars, it is doubtful that minimum standards in any state are sufficient to cover maximum costs.
A more realistic figure for a worst case scenario would be in the hundreds of thousands not tens of thousands of dollars.
Ultimately liability car insurance is designed to protect the public in the event of an accident. Too little car insurance could result in being held personally liable for other people’s injuries and the damage to other people’s cars. Without enough coverage you could be sued for damages above the amount of your coverage.
It is advisable to carry a reasonable amount of liability insurance regardless of state required minimums.
Collision Insurance
Collision insurance covers damage to your car in the event of an accident which is your fault. Your car will be either repaired or replaced. It does not pay for any sort of injuries either to you or your family.
It only covers the current value of your car, in the event it is totaled in an accident. If the car is damaged in another way not involving a collision of any kind, the collision insurance will not reimburse you for damages to your car.
Collision Insurance Covers:
- Damage to your vehicle, caused by an accident, as long as it does not exceed the value of your vehicle
- The value of your car if it is totaled
Attention Collectors of Classic Cars
If your car is a show quality car, or classic car it is very important to discuss this with your car insurance agent.
If you do not specify that your car is a 1968 Mustang, for example, fully restored and worth $15,000 you could easily end up collecting $500.00 if your car is totaled. While your premium would be lower if you didn’t explain that, your collision insurance would be completely useless.
Comprehensive Insurance
While collision and liability insurance cover traffic accidents only, comprehensive insurance covers every other circumstance in which a car can be damaged. Comprehensive insurance is a very good idea if you are still making payments or if the car is a valuable one.
Comprehensive insurance can be expensive but the cost can be reduced by installing anti-theft and tracking devices.
Comprehensive insurance covers:
- Theft
- Vandalism
- Damage due to fallen tree limbs
- Storm Damage including hail
- Damage done in parking lots
- Fire
- Any other damage not caused by a traffic accident
Uninsured Motorist Insurance
In the event that your car is damaged by a driver who either doesn’t have insurance, or has insufficient insurance, your uninsured motorist coverage will repair your car, or pay the difference between the amount of insurance the other driver has and the cost of repairs.
Uninsured motorist insurance coverage pays for damages to your car if the other driver has no insurance and the difference between the full value of the other motorist’s insurance and your damages.
Medical or Personal Injury Coverage
In the event you are injured in a car accident, personal injury insurance covers your medical bills. If you have health insurance this type of policy may be unnecessary, but if you do not, then perhaps it could be an alternative in order to cover one of the most likely risks.
Comparing the cost may be helpful, in order to decide if personal-injury insurance might be worth it in your situation.
No Fault Insurance
No fault insurance covers injuries and damages no matter who is at fault, or in cases where either no one is at fault or fault cannot be determined. It can be costly and many companies do not even offer no fault insurance. No fault insurance can be very important in cases where police officers do not assign fault.
No fault insurance covers:
- Your injuries in an accident no matter who was at fault, or if no fault is determined in the accident
- Injuries to your passengers no matter who if anyone was at fault
- Damages received in an accident regardless of fault
Gap Insurance
Gap insurance pays the difference between what is owed on the car and its actual value, in the event that the car is wrecked before it is paid off. Gap insurance may be required by your auto finance company as your car depreciates. Collision insurance only covers the value of the car not how much you still owe.
Gap insurance pays the rest:
- Your car even if you owe more than the car is worth
- The difference between the value of your car and what you owe
Getting the Best Price
No matter what types of car insurance you need, you can shop on line to find the absolute best price. Use an online car insurance premium calculator to find the best prices.
Car insurance payments absolutely must be made on time. Late payments for car insurance can lead to canceled policies and even the state’s confiscation of your tag. Bills can be delayed and even arrive after the payment is due.
It is critical that you keep up with your car insurance payments, and make them by phone or in person at your insurance agent’s office, if the due date is near and you have not received a bill. You may find it beneficial to learn if there is an office for this company in your area.
It is definitely advantageous to learn about instant payment options such as paying by phone. Don’t allow mail delays to make your monthly payments late and cause a lapse in insurance. Get the coverage you need today with our FREE quote comparison tool!
Choosing the right car insurance company is often a matter of price, but other times it reflects quality, good service and personal preference. There are many reasons why information about low cost car insurance is more easily obtained on line. Which company you choose is completely up to you. Calculate your car insurance costs today for FREE!