Car insurance estimate: How much do you need?
Every car buyer goes through a checklist before buying his or her brand new car. The most important aspect of the list is the auto insurance and the car insurance estimate. A car insurance acts as a protection for your car as a whole. Your insurance officer may offer you a varied range of auto insurances depending on the type of vehicle you own, the amount of coverage you need and the number of years you wish to have the protection for, in return of a yearly amount, known as the insurance premium.
When you incur a car accident, the cost of damages the car bears is covered by the car insurance you opt for, this, however, does not include any damage incurred above the overall auto insurance amount.The value of your auto insurance estimate is calculated by the IDV or the Insured Declared Value of your vehicle; the IDV is the maximum amount the insurance company is going to pay for the damages your car incurs. The amount of IDV roughly equals to the actual market price of the car you own or the showroom price of your car. The IDV thus is not a constant value and keeps changing periodically.Upon renewal of your car insurance after a year, the value of IDV will decrease because of the amount of depreciation charged on it after a year.
What are the damages covered by the car insurance?
The car insurance will not cover all the damages your car faces, during the life of the insurance. Coverages in the US are usually seen in a cluster of three numbers separated by a dash, for example, 20/50/30 or 100/500/100. The first two numbers are usually seen for medical coverage. For 100/500/100 the insurance company policy will pay $100,000 per person up to $500,000 combined for all people. The last number covers damages made to the property, that is any other vehicle or property you hit in an accident.
A comprehensive auto insurance plan will mainly cover the following types of damages:
- Liability Coverage:
The coverage also commonly known as casualty insurance, mainly covers bodily injuries and property damages, that is damage to your car. The amount of insurance will, however, vary from one jurisdiction to the other. The insured is also allowed to increase the amount of the insurance coverage (before the loss), to cover any loss incurred during the accident.
If in an unfortunate circumstance, you hit a telephone pole with your car. In such a case, the liability coverage covers the expenses of the damage caused to the pole. It, however, does not cover any other expenses related to the damage being caused such as disruption of services claimed by the Telephone company.
A bodily coverage covers the insured from possible injury during the accident as well as covers him or her from any third party damage caused by accident. The coverage covers the court costs and damages the insured is being sued for.
- Full Coverage
Full coverage covers both collision and comprehensive damages done to your vehicle. The collision coverage covers the vehicle involved in collisions, by paying out for the repair of the damage incurred or by paying out the cash value of the vehicle in case the vehicle is not repairable.
Comprehensive coverage covers the vehicle from damages not ordinarily considered as collision damages. The damages covered by this coverage are damage due to theft, vandalism or impact with animals. Additionally, a lot of insurance companies also include ‘Act of God’ damages that is any damage caused by event or events caused to factors that are beyond human control, such as cyclones, tornado, tsunami etc.
Apart from the main coverages mentioned above, insurance companies in the US also provide the following coverages:
- Damages done by uninsured/underinsured motorist (UM/UIM)
- Loss of use
- GAP coverages.
- Lease/Loan Payoff.
- Emergency Road Service Coverage.
- Mechanical Breakdown Coverage
- Custom Parts and Equipment Coverage.
How can you calculate a car insurance estimate?
You can follow these simple steps, to correctly get your car insurance estimate:
- Before buying a auto, narrow down on your choices.
- Determine the amount of coverage you’d ideally be needing. If you are buying a new car, you should go for insurance that covers collision and comprehensive damages as well. This is however not mandatory in case of a used auto.
- Compare insurance quotes for your vehicle. Different companies will have different insurance costs for your vehicle depending on the type and market price of the model. Comparing the quotes will help you narrow down to the best insurance for your auto.
- Make the final choice, based on the comparison chart.
What should your ideal car insurance estimate be?
There are a lot of factors that affect your car insurance estimate. Ideally, you should choose a plan and amount, which covers most of the possible damage that your auto may incur in the lifetime. The amount of insurance you chose typically should be higher than the actual cost of your overall auto.
The ultimate car insurance estimate will ultimately depend on your own choices and individual situation. It is always advisable to look at a wide range of options and companies offering auto insurance after calculating the car insurance estimate. Comparing insurance quotes, and what they cover with each other will ensure you get the most out of your auto insurance.
Auto Insurance With Full Coverage at Cheap Rates:
Some insurance companies may title themselves as providers of very cheap car insurance no deposit or cheap auto insurance for full coverage. But, what they do here is, that they provide insurance policy covering only the bare minimum necessities that can simply help one to be termed as a legal driver, i.e. their schemes only provide the basic physical injury and property damage liability coverage at cheap rates.
Hence, instead of going for a cheap car insurance, one must look for policies that provide quality coverage plans along with affordable rates that can help in the long run.
Is it possible to lower Insurance Premiums?
The answer to this question is a big ‘yes’. Getting quality coverage doesn’t really mean that one has to pay premiums that are out of one’s capacity to earn. There are several ways one can lower their insurance premiums and enjoy cheap auto insurance full coverage. Here are a few simple ways to pay low premiums for quality coverage:
• Choose a wise billing plan: One should look for insurance companies that provide convenient billing schemes, like monthly, quarterly, annually or semi-annually so that the shopper can choose a plan fitting his/her needs and eventually pay at the time when he/she is comfortable.
• Be careful in selecting a coverage plan: One can pay low premiums by deducting one or the other type of coverage from their policy depending upon their needs. For instance, if one drives an old car with great mileage, then one can prefer to remove comprehensive or collision coverage from their policy and reduce the premiums to be paid.
• The type of car: The type of car one opts to drive has a direct impact on one’s car insurance rates. Expensive cars are costly to insure and hence their premiums will be more. It should also be noted that the car’s age can also affect the premiums. Older the car one drives, fewer the premiums one has to pay.
• Clean driving history: If the driving record is clean, i.e. without any tickets or accidents, then the driver can avail discounts on the premiums and enjoy cheap auto insurance with full coverage.
• Avoid joint policies: If the driver opts for a joint policy package, then the car insurance rate will automatically increase, especially if the other person is a teenager. Teen drivers are prone to more accidents and hence, they are liable to pay the highest premiums. Thus, it is advisable to avoid this type of policy to lower premiums.
• Deductible price: One can enjoy significantly lower premiums if one opts for higher deductibles. While this will increase the chances of paying out of one’s own pockets in risky situations, but the premium to be paid on whole will reduce for sure.
By taking care of all the above key factors, one can easily save on their premiums and enjoy the benefits of cheap auto insurance for full coverage.
With all this said, many drivers who own classic cars might still have their doubts uncovered. Owning a classic car is not similar to that of other motorists. So here’s a detailed description of the type of benefits, owners of classic cars can avail and at the same time enjoy cheap car insurance full coverage, like the rest of the automobile owners.
Cheap Insurance Rates for Classic Cars:
When the company talks about coverage for classic cars, here is a list of cars the insurance company is probably talking about:
• Morris Marina
• Alfa-Romeo cars
• Ford Cortina
• Vauxhall VX220
• Hillman Imp
• Austin Seven
One should be clear of the fact that not all insurance companies can provide affordable coverage for all of the above classic cars. There are a very few insurance companies that provide coverage for all classic cars, including the cars that are just about 5 years old.
If one decides to opt for quality over quantity to insure such classic cars, the following are the benefits one can enjoy:
• Coverage for true value: While looking for cheap car insurance near me, one should opt for an insurance company that will provide agreed value cover for the car’s true value rather than just paying off the market value.
• Discounts on Limited Mileage drives: Insurance companies that provide quality coverage will not only offer discounts on limited mileage drives but also insure classic cars that are driven more often.
• Laid-up policy: Always prefer insurance companies that will provide full coverage and accept claims for both accident and theft risks for classic cars.
• Discounts on club memberships: While insuring classic cars one can avail discounts up to as high as 15% on memberships to different classic car owners clubs or other specific memberships like jaguar enthusiasts club.
• Car kit insurance: It is better to opt for insurance companies that provide car kit insurances.
• Coverage for modifications: Classic car insurance should also cover charges for modifications made to the car.
• Other special coverage: Quality coverage plans might also include special covers like wedding hire cover or track/rally cover. These are not very common but can be included upon request of the car owners.
If one is choosing to buy cheap auto insurance online, then all of the above factors or benefits must be kept in mind to avail the best possible policy. One can, however; leave one or more of the above benefits solely depending on one’s interests and needs. But it is highly recommended and advantageous as well, to have all of the above benefits while choosing for classic car insurance.