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Auto Insurance


"Car insurance acts like a great friend at the time of crisis. It covers the losses made in an accident and thus saves you from paying out the huge sum from your pocket. However, there does also need to be insurance on the car itself, so the owner of the car needs to take out a policy to cover it. The extension is just there in case you need to drive the car and are not a named driver under the owner's policy. One thing to bear in mind though is that you are only getting third party only cover under this extension, regardless of the cover you have on your own car, so if you have an accident, the insurer will pay out for damage to anyone else's car or property if you are to blame, but you will have to foot the bill for damage to the car you are driving under the extension yourself." -Unknown 




Auto Accident



How to save money on car insurance




How to compare and shop around for auto insurance:
1) Increase your deductible: Figure out how much coverage you need to protect against a catastrophe. 
The lower the deductible, the more expensive the policy. Do not choose a low deductible (ie $100), choose a much higher deductible if you can afford it. Ask yourself at what dollar value would it become a real crisis for you. Can you handle a $1000 bill, or a $5000 bill? Go with a deductible you can afford and this will lower the cost of the insurance. You want the insurance to cover you for a real catastrophe.
2) Look at the replacement cost of the policy: If you are driving an old car, if it is not worth that much don't bother with a replacement cost. In the other hand, if you are driving a brand new car all the time and you have the tendency to replace this car every 2 years (not recommended if you want to save money) then you do need replacement coverage on the car.
3) Talk to your auto insurance agent: ask him/her to show you the different types of coverage and the 
different levels of extra coverage you want. Once you decide exactly what is it that you wnat to have, double check with your financial planner.
4) Shop around: Once you know exactly what you want , shop with that list with other insurance carriers. Tell them... here is the exact policy I want, the amount of coverage, the types of things I want covered and the deductibles I want. Using the list you will be able to determine which ones are the cheapest
5) Be careful about choosing the cheapest: Some insurance companies are the lowest because if you file a claim, they will automatically cancel you. You also need to know what is the record of this company in terms of paying claims. You also need to know if they have the ability to pay claims. How do they react when a claim is filed? Don't assume that the cheapest one is the best.
6) Look at personal injury: make sure to look at worst case scenario. If you become responsible for someone else's death or disability injury, what is your financial exposure. It might be a good idea to tal to a personal injury attorney and ask. Make sure you have coverage to protect you. 
7) Consider an umbrella liability insurance that will provide coverage beyond what the auto policy can provide. Consult with your home owner insurance and auto insurance agent for advice about that.


Ask your auto insurance broker if you are eligible for any discount i.e. there is discount if you are over 50, retired, etc. Adding a teenager can double your premium. If your child maintains a B average or better and passes a driver safety course you may be eligible for discounts.