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Step 1
There are 5 different types of major coverages that are included in an auto insurance policy and they are:
1. Physical damage coverage: This is the part of your policy that takes care of all the physical damages caused by the accident
Physical coverage can be split into two types of coveragess: collision and comprehensive. In collision, your car is covered for all the physical damages that happen due to an accident. In comprehensive, your car is insured against natural disaster or any other cause of damage apart from collision.
2. Property Damage: This will insure you for the damage you cause to 3rd party property due to an accident.
3.Medical coverage: This is a very important coverage, as well. This is also called PIP, personal Injury protection. This will reimburse the medical expenses, up to your chosen limit, to treat the injuries of passengers in the car involved in an accident.
4. Bodily injury: Covers the bodily injury caused by your car to a third party.
5. Uninsured and Underinsured coverage: This is your protection against the uninsured and underinsured drivers who can damage your vehicle. If you know of any of them, you should report to the authorities. -
Step 2
Once you understand these coverages you have better bargaining power with the insurance providers. Read and understand them thoroughly and be prepared to discuss each one of them individually when you are negotiating with the insurance companies.
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Step 3
Make a list of as many insurance companies as you can. 10 should be sufficient. contact them and ask for an ITEMIZED quote so you can compare them by each individual coverage type in the policy.
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Step 4
You should also check on all discounts they can offer you. The various discounts that are available include:
1.Low risk Occupations with
2.Auto club membership: AAA
3.Combined coverage
4.Safety features discounts
5.Higher risk assumption by the driver
6.Multicar discount
7.Family discont
8.Senior citizen discounts
You should be able to get a better rate once you follow these steps appropriately.
