AUTO INSURANCE ARTICLE

Pre-Owned Auto Insurance on the Cheap

By: cradel_book

There are varying factors behind your auto insurance premiums. Knowing what these factors are gives you freedom in managing your auto insurance costs. Being in the know points you where you can work out in maintaining, if not reducing your auto insurance expenses.

Whether your auto insurance has been a product of your online or offline search, auto insurance companies' offerings vary based on the prospective insured’s personal details and level of risk.

Your personal details include, among other things, your age, your line of work, your degree/s completed, marital status, and the residence where you reside. If you live in a state in East Coast, the minimum requirements for your auto insurance coverage may be different from your friends on the other side of the Coast, or even just across your state boundary.

But one who is driving a pre-owned car or in simpler terms, a used car may be covered by requirements that are very specific to its circumstance.

For instance, if your used or pre-owned car’s value is just hovering below the $2000 mark, then it may be in your best interest to cover it with bodily injury and liability/property damage coverage. This will allow you to claim benefits in cases when you are at-fault in an accident. This is important because in accidents where you cause an injury or property damage to another party, you will need to pay for it. And all the more, if you cause a multiple-car pile-up, or even cause an accident where more than one person is injured.

But at a financial point of view, it is not to your advantage to get a collision deductible coverage. Why is that? If it costs you more to pay out the deductible than the vehicle’s worth itself, then it is not a sound investment.

The amount you pay to the insurance company in the event of your vehicle being vandalized or damaged in a snow storm, or if you hit an animal on the road or you get involved in a hit and run accident, is called the comprehensive deductible. The difference between these two deductibles is very important to know. Collision claims affect your future rates on insurance, with you being at-fault. But the comprehensive deductible, do not affect your future insurability rate, you being in a no-fault position.

Be reminded that the higher your deductibles are, the lower your premium amount for that year is. So the best way to go is to have a lower comprehensive deductible, and a higher collision deductible.

It is important to know what insurance premium rates and coverage apply best for your pre-owned car situation. Asking your insurance representatives help and opinion on the matter is in the right direction. You may also shop around either by visiting insurance companies personally, calling by phone to inquire, or if you are computer-savvy, by comparing policies online.