Tuesday, March 15, 2011

You Can Make Your Auto Insurance Premium Affordable

By Alan Rochford


Don't live in fear of that annual auto insurance bill arriving in the mail. Take control and make sure you get the best insurance for your needs at the best price.

For a start, you need to work out how big a risk you are on the roads. Having figured that out, you can trim your auto insurance policy to make it more affordable and yet meet your needs. One thing to consider is the cost of your vehicle.

Clearly, you need to be protected in the event that you cause an accident with the attendant possibility of doing damage to property. That component of auto insurance is called liability coverage. The amount of liability coverage you have to have is determined by the particular state you live in, but you can purchase more than the basic requirement. Now you may wonder why you would consider doing that, and your risk assessment will help you understand this concept.

However, the reason is simply related to risk, and those on the road a lot could be at greater risk of causing or being involved in an accident that the average person. Accident-prone drivers might also want a higher liability coverage. An increased liability coverage ensures that destruction and court costs are more likely to be met by the insurer and not by you personally.

But now you are wondering where the savings come in, and how you can make your auto insurance premium more affordable. Again, you need to think about your particular needs. An inexpensive vehicle probably doesn't need collision insurance. When you think about it, rather than paying out for collision insurance each year, you could be better advised to save that money knowing that, should the unexpected happen and you trash the vehicle, you have to dip into the savings to replace it. Meanwhile, liability coverage keeps you protected if you do damage to property someone else's vehicle.

So, to get that affordable auto insurance that you want, get the basic liability insurance, and then cut back on the deductibles you feel you can do without, such as collision insurance.




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