Getting the insurance for your car
Insurance is a must for your car in USA. Without an insurance, you can’t buy a car. It covers all your expenses due to any kind of accident, damage to your or other cars involved, or persons injured.
There are few factors which decides the insurance rate
- New or Old: For a new car insurance is normally higher than the old car.
- Safety features: Cars with extra safety features like ABS system gets comparatively low rates.
- Your driving experience: If you have fairly good driving experience, there are better rates.
Average rates for a new driver is around 600-700$ for first six months. It again depends on the company agent and the deal you make with them.
Rate varies from company to company. Normally it is higher for initial six months. after that depending on your driving record and accident history, it may come down or go up.
How to pay?
It can be a one time payment, or can be in monthly installments. If you pay one time, you might get some savings.
Basic terms about auto insurance
Collision: Means coverage of your expenses due to collision.
Medical and Bodily injury: Means coverage of bodily injury, or death of any person.
Comprehensive Deductible: Means coverage of loss of your car, theft and damage due to any kind of natural disaster.
Towing: Means coverage for towing expenses, at the time of any emergency.
Rental Car Coverage: Expenses of rental car during the time when your car is in garage for any kind of repairs.
Property damage liability: Pays your legal defense cost and claims against damage of someone’s property.
Major insurance companies are Farmers, Geico , Progressive, Liberty Mutual, Murcury, etc.
Tips
- Talk to 2-3 insurance company agents. Make a comparative study of the rates.
**Remember, there is scope for bargaining every where. - Take your insurance before going to the Car dealer, as without an insurance, you can’t buy a car, and taking an insurance at dealers place could be costly.
- Make a note of your car insurance agents contact information. Keep it in your wallet, you might need it at any time.
- Always keep a copy of your car insurance papers in your car.
- If there is some minor damage to your car e.g. scratch, dent etc. due to some.
