COVID-19 is having a massive impact on the global economy and very few industries have been untouched by it. If your business relies on employees working in a physical space and profits only when people are willing to shop and spend, thereâs no escaping it.Â
Itâs no surprise, therefore, that the auto industry has been so negatively affected. In a recent guide, we looked at the many auto loan relief options that manufacturers offering in light of the coronavirus. In this guide, weâll highlight the ways this industry has been stung by the pandemic and look at what it means for the future of the US automobile and car financing sectors.
How is the Coronavirus Affecting Car Sales?
The automobile manufacturing industry experienced a minor surge at the beginning of 2020 but COVID-19 began to impact sales heavily in March. Many companies, Fiat Chrysler and General Motors included, began the year with strong momentum behind them, but March hit them hard and negated all the gains made during the first two months.
Both of these companies recorded losses for the first quarter of 2020, with Fiat Chrysler losing 10% in total.
Toyota, one of Americaâs biggest manufacturers, also recorded massive losses for March, with daily sales dropping by nearly a third during this month.
All of this is to be expected. The US has yet to announce the sort of national lockdowns we have seen in countries like the United Kingdom, Italy, Spain, and Greece, but many citizens are in self-isolation, countless businesses have shut their doors, and there are fewer cars on the road as a result.
Combine this with the fact that people are losing their jobs and worrying about their futures, and itâs easy to see why car sales have been affected so severely.Â
What are Manufacturers Doing About It?
Automobile manufacturers have moved quickly to stem the rising tide of financial devastation caused by COVID-19. Fiat Chrysler, for instance, is offering improved auto loan conditions to convince consumers to make sizeable purchases and keep the wheels turning. It has also made it easier to purchase a car for those in self-isolation or lockdown.
You can now buy a Fiat Chrysler online, with options for trade-ins, auto loans, and pretty much everything else you would get when buying in person.
Theyâre making it easier for you to buy because they need you to make that commitment. At the same time, the production of many new vehicles has been halted.
While some plants and showrooms are still open in the United States, Europe has experienced an almost continent-wide shutdown, leading to a decreased demand.Â
Manufacturers are also anticipating that things will get worse, as many experts predict that the USA will experience a spread similar to that of Spain and Italy.
How Has COVID-19 Hurt the Automobile Industry?
We have already touched upon some of the ways that COVID-19 has impacted the automobile industry, but the problem goes far beyond people not being able to make it to their local showrooms. Furthermore, if events in Europe are anything to go by, the problems will only get worse and it could be several years before the automobile sector recovers.
Here are a few reasons the industry has been hit hard:
There is a genuine fear that the COVID-19 pandemic will remain for all of 2020 and even beyond that. It seems unlikely that it will last for that long, but if the country doesnât go into lockdown and a vaccine isnât produced, itâs possible.Â
With this in mind, many consumers are putting off buying new cars out of fear that they simply wonât need them. New cars depreciate rapidly and can lose 20% in the first year. Whatâs the point of spending $30,000 on a new car if it will be worth $24,000 by the time you actually get behind the wheel?
Struggling Stock Markets
The stock market doesnât just impact big companies and investors. It also affects average American families who have their money tied into savings accounts, stocks, and pensions. Savers have lost a lot of money and are worried that theyâll lose even more in the near future, making buying a $30,000+ vehicle incredibly reckless.Â
Price of Gas
One of the few things that the automobile industry has on its side is the price of fuel, which has plummeted in the past few weeks. The problem is, no one cares about the price of fuel when theyâre stuck inside the house worrying about their health and their jobs.
Automotive plants canât simply shut down for a few weeks and then start up again when everything has cleared up. Many plants were already struggling to keep things together and once production stops and their profits disappear, they may close down entirely, taking hundreds, if not thousands of jobs with them.Â
Bottom Line: Car Sales After COVID-19
Itâs highly likely that the hard times will continue for the manufacturing industry. As the coronavirus continues to spread across the country, manufacturing plants will struggle to retain employees, showrooms will shut, and fewer Americans will be willing to pay the $30,000+ required for a new vehicle.
Whether this impacts the future price and availability of automobiles remains to be seen, but itâs highly likely that weâll see some massive changes in this industry. Americaâs best-loved manufacturers will lose millions and could be sent to the brink of financial destruction, while many salespersons and mechanics will likely lose their jobs as demand drops and garages/showrooms close down.Â
How COVID-19 is Affecting Auto Loans is a post from Pocket Your Dollars.
If you buy or lease a car, youâll need to arrange for insurance coverage. Not only is it the law in most states, it will also protect your bank account in the event of an accident. However, if youâre involved in an accident and the other driver doesnât have car insurance, you could run into problems. Thatâs the thinking behind uninsured motorist insurance.
Compare checking accounts here.
Uninsured Motorist Insurance Basics
If two people who both have car insurance get in a car crash, they exchange insurance information. The other driverâs insurance company generally pays your expenses if youâre in a crash. So what happens if the other driver doesnât have insurance? Thereâs no one to pay you, cover your car repair or replacement or foot your medical bills if youâre injured. Your own car insurance may cover those costs, but it depends on the plan.
Thatâs where uninsured motorist insurance comes in. Uninsured motorist insurance policies offer protection against property damage or personal injury resulting from a run-in with an uninsured driver. There are a lot of bad drivers out there, and plenty of people who drive regularly but canât afford car insurance. Have a run-in with one of them and you could end up covering your own medical and car repair bills.
In 22 states and the District of Columbia, drivers are required to have uninsured motorist insurance, so if you have vehicle insurance youâre covered in the event of a crash with an uninsured driver. But if you live in a state that doesnât require uninsured motorist coverage, your regular car insurance policy may not protect you from bills if youâre in a crash with a driver who doesnât have car insurance.
Check out our budget calculator.
Is Uninsured Motorist Insurance Necessary?
If you live in a state that requires uninsured motorist coverage as part of the minimum coverage requirement for all auto insurance policies, you have at least some protection from uninsured drivers. You can always call your insurance company to check on the kind of coverage you have and discuss your coverage options.
If you live in a state that doesnât require uninsured motorist coverage, the question becomes: Should you buy uninsured motorist insurance as an add-on policy to your regular car insurance? Before you decide, itâs worth pricing it out.
First, you can call your car insurance provider and check what level of coverage you already have against uninsured motorists. Your existing plan may provide some level of protection against medical bills and/or car repair bills resulting from a crash with an uninsured motorist.
If you donât have any coverage or if you think your coverage levels are insufficient, you can ask your insurance provider how much it would cost you to add uninsured motorist insurance to your coverage package. You can also get quotes from other car insurance companies and opt for the policy that provides the best coverage for the lowest price.
Uninsured motorist insurance can give you some extra protections, too, such as coverage in the event that a hit-and-run driver crashes into your car or in the event that youâre struck by a vehicle as a pedestrian. So even those with built-in protection against uninsured motorists through their regular car insurance may be tempted to add extra coverage.
Related Article: All About Car Loan Amortization
Just because you have car insurance that youâre paying for every month doesnât mean youâre protected in all eventualities. If reading this article has made you nervous that you might not have enough â or any â protection against uninsured motorists, this could be a good time to get your insurance company on the phone, particularly if you live in a state with a high percentage of uninsured drivers.
Photo credit: Â©iStock.com/bowdenimages, Â©iStock.com/bowdenimages, Â©iStock.com/vm
The post What Is Uninsured Motorist Insurance? appeared first on SmartAsset Blog.
Deciding to move is a major decision and location is one of the most important aspects you should consider when planning a move. Whether it’s a new neighborhood, a new city, or a new state–once you get there, you want to make sure your new community truly makes you feel welcome.
The post Four Things to Consider When Choosing Your Next Community appeared first on Homes.com.
You’re involved in an accident, your car is wrecked, and your insurer has stepped in to cover the damages. All is well, and you only have the deductible to worry about, but what happens before the car is fixed? How do you continue to get to work every day and take the kids to school when your car is in theÂ repair shopÂ for the next few days or weeks?
That’s whereÂ rental carÂ reimbursementÂ coverageÂ steps in. If you have thisÂ optional coverageÂ on yourÂ carÂ insuranceÂ policy, you won’t need to worry.
Keep reading to learn how this coverage option works.
Rental CarÂ ReimbursementÂ vsÂ RentalÂ CarÂ Insurance
Before we go any further, it’s worth clarifying the potential confusion surroundingÂ rental carÂ coverageÂ andÂ rental carÂ reimbursementÂ coverage. The former includes damage waivers, property insurance, and liability coverage and protects you when you are driving aÂ rental car.
You will be offered this type of insurance when you rent a car and can also get it through your currentÂ insurance policyÂ or through yourÂ credit card, bank account or travel insurance.
As forÂ rental carÂ reimbursement, it is designed to cover the costs of renting a vehicle when your car is in the shop or has been stolen.
Rental carÂ reimbursementÂ only applies if yourÂ insurance companyÂ is paying for the repairs and those repairs are covered by yourÂ insurance policy. It is a coverage option that is typically only available to policyholders who haveÂ collision coverageÂ or comprehensive coverage insurance.
What DoesÂ Rental CarÂ ReimbursementÂ Cover?
Rental carÂ reimbursementÂ is designed to cover theÂ cost of aÂ rental car, but there are limits. MostÂ insurance companiesÂ will only cover you for 30 days and many also set aÂ daily limit, often between $50 and $100. This means that you can’t claim for costs above this or for a rental period that extends beyond it.
In some states and in some situations, you may not even need toÂ addÂ rental reimbursement coverageÂ to your policy as theÂ at-fault driverÂ could be responsible for yourÂ rental costs. In the event of aÂ car accidentÂ caused by a fully-insured driver, their liability insurance may cover you for transportation costs, while also paying for the damage done to you and your vehicle.
However, there is aÂ coverage limitÂ that means they may not be liable for all the costs you pay to theÂ rental carÂ company. In such cases, havingÂ rental carÂ reimbursementÂ coverageÂ on your policy will cover the difference and ensure you’re not out of pocket.
How Much Does it Cost?
The cost ofÂ rental reimbursement insuranceÂ differs from state to state and provider to provider. Your costs will also be higher if you are deemed to be a high-risk driver and have a history of at-fault accidents andÂ insurance claims. Generally, however, you can expect to pay anywhere from $3 or $4 a month extra to $15 or $20 a month extra.
It’s not a huge amount because the cover provided is very limited. For instance, at $50 a day over 30 days, the insurer’s liability is just $1,500, which is a fraction of the amount they can expect to lose with other coverage options.
How Does the Process Work?
You’re involved in a minor accident and your car is taken to theÂ body shop, now what? If you haveÂ rental coverage, you can do one of the following:
1. Pay for it Yourself
When you pay for the vehicle yourself, you have more choice about what car you rent and from where you rent it, and you can also get it as soon as you need it. If you choose this option, just make sure you keep a record of all the costs so you can report these to the insurer and get your money back.
By choosing this method, you have more control and providing you have cover, you shouldn’t encounter any issues when seeking reimbursement. Get theÂ rental vehicleÂ you want, drive it off the lot, and wait for your car to be fixed and your expenses to be covered.
2. Let YourÂ Insurance CompanyÂ Do It
The second option, and the best option, is to go through yourÂ insurance company. They will contact theÂ rental companyÂ on your behalf and deal with all of the red tape, ensuring you only get a car that you are fully covered for and providing you with all the necessary details at the same time.
By going through your insurer, you can avoid the hassle and they may even help you to get a better deal.Â
It’s worth noting, however, that your insurer will not pay for additionalÂ rental carÂ coverageÂ like damage waivers. But as noted already, yourÂ auto policyÂ may already provide you with the cover that you need.
Should You Get AdditionalÂ CarÂ RentalÂ Reimbursement Coverage?
On average, you will useÂ rental carÂ coverageÂ just once in a 10-year period, and you may only need it for a few days at a time. To determine whether thisÂ additional coverageÂ option is right for you, simply calculate how much it will cost you on a monthly basis and then compare this to how much it is likely to offer you.
For instance, let’s assume that you are charged $10 a month for this additional option. This means you will pay $120 a year or $1,200 over ten years. Assuming you’re being offered a maximum of $50 per day for 30 days, this means the benefits are capped at $1,500.
If you’re paying $15 a month instead, that’s $180 a year, $1,800 a decade, and more than you will get back. And, in both cases, we’re assuming that you rent a car for the full 30 days at the maximum allowed price, which is somewhat rare. As a result, you can probably overlook thisÂ additional coverageÂ option when those are the prices quoted.
Bottom Line: ChoosingÂ Insurance Coverage
FromÂ carÂ rentalÂ coverageÂ andÂ rental carÂ reimbursementÂ toÂ roadside assistance, new car replacement and more, there is no shortage of options for the average driver.Â
But as tempting as it is to add all of these options to yourÂ autoÂ insuranceÂ policyÂ in the knowledge that you’ll be fully covered, the costs can spiral out of control very quickly. You could find yourself spending an excessive amount of money unnecessarily, and at a time when everyone is watching their budgets, that’s never a good thing.
Think aboutÂ rental carÂ reimbursementÂ carefully and reject it if you don’t need it, even if it is only $10 or $20 extra a month.Â
A Guide to Rental Reimbursement Coverage is a post from Pocket Your Dollars.
Food delivery and ridesharing are great ways to earn extra income. The market for food delivery has increased as restaurants have had to adapt to COVID-19 precautions, and just about everyone could use some extra income as we continue to navigate life during a pandemic.
If you’re considering joining a food delivery or rideshare company as a driver, you need to be sure you have the right insurance coverage. If you’re in an accident, you want to be able to replace your car or fix it so you can keep working.
As you review your car insurance, here’s what you need to know:
You have a coverage gap
Rideshare and delivery companies offer some insurance coverage while you are on your way to pick up passengers or food and while you are transporting passengers or food. However, when you have your app on and are waiting to accept a delivery, neither your personal car insurance or your rideshare company offers coverage.
If you are in an accident while you’re waiting to accept a job, you won’t have any insurance coverage. You’ll be on your own for covering the resulting costs and may have to deal with other issues.
Look for an insurance policy to cover the gaps
To protect yourself and cover this gap, you’ll want to purchase an additional policy or a policy that adds rideshare coverage to your personal policy. These policies and riders are commonly called rideshare insurance. However, they are commercial auto coverage policies that offer insurance coverage when you use your car for business.
Choose a reliable and highly rated insurer for your policy. Check the insurer’s financial strength to gauge the company’s financial stability and ability to make claims payments. Reading customer reviews can give you a sense of the customer experience with the insurer, which can also help you find a good company.
As you shop for policies or riders that can be added to your personal auto coverage, you can use companies like Policygenius toÂ compare policies across multiple insurers. The ability to compare quotes and policies quickly and efficiently makes it easier to find a good deal. This can also be beneficial if you’re also shopping for personal auto insurance coverage.
Before you buy a policy, understand how it works:
- What is the deductible? This is the amount you’ll pay before the insurer starts to pay for covered damage.
- How much is the premium? This is the monthly fee you pay for insurance coverage.
- Does the policy have a benefit maximum? This is the most an insurer will pay. Once this limit is reached, the rest of the expenses are your responsibility.
- What coverage is offeredâcollision, liability, comprehensive, medical payments, income loss, etc.? Car insurance policies are highly customizable because you can choose how much and what kind of coverage to buy.
Car insurance requirements vary by state. Liability coverage for property damage and physical injury is most commonly required. Some states require additional coverage for uninsured or underinsured motorist insurance or Personal Injury Protection (PIP). PIP coverage offers coverage for lost wages according to your policy’s terms.
Making a claim for lost wages will depend on whether your state is an at-fault or no-fault state. You may need to file a claim with the other driver’s insurance, use your uninsured or underinsured motorist insurance, or PIP coverage.
Keep in mind that you typically have to have the same level of coverage on your personal insurance as you do with your rideshare coverage. Knowing the cost and kind of protection offered by your policy will help you find one and choose coverage that will meet your needs.
Communicate with your personal car insurance carrier
If you’re driving for hire and do not communicate that to your car insurance company, you could lose your coverage. Insurers can end your policy and no longer offer you coverage if you don’t communicate clearly about your car usage.
While communicating and getting commercial auto coverage added to your policy can cost more, you’ll be better protected if you have the right coverage and won’t have to worry about your insurer rescinding the policy. Communicating with your car insurance company about how you’re using your car will ensure that you have the coverage you need, which will give you peace of mind and benefit you in the long run.
Set yourself up for success
Before you sign up with a food delivery or rideshare service, understand what coverage your company offers and where the coverage gap is. This will help you know what to look for as you evaluate rideshare or commercial auto insurance policies.
If you’re happy with your current auto insurance provider, start by asking them what they offer. You can also compare what your current insurer provides with what other insurers are offering to check that your company is competitive.
Purchasing insurance to cover the gap will give you peace of mind and financial protection if you’re in an accident. It will also protect your car, which is essential to your ability to work as a rideshare or food delivery driver.
The post 3 Things Rideshare and Delivery Drivers Should Know About Car Insurance appeared first on Credit.com.
Join bloggers Amanda and Corey Hendrix as their family embarks on a new homebuying journey. From previously living in older homes that require plenty of love (and renovations), they’re looking at opening up their option into new build territory.
Insurance companies determine risk when calculating rates and offering coverage. If the company determines that your accident risk is higher than average, you’ll have to purchase high-risk auto insurance. Since companies base rates on risk, you can expect to pay more for coverage if you need high-risk insurance.Â
Find out why you might need high-risk insurance, how you can lower your premiums, and more. Then you’ll be ready to shop for high-risk auto insurance if necessary.Â
Reasons for High-risk Auto Insurance
Insurance companies look at various factors when determining risk. You might need high-risk insurance if you:
- Have lots of at-fault accidents on your recordÂ
- Have a large number of speeding ticketsÂ
- Have reckless driving or racing violations
- Have been convicted of driving under the influence
- Are a young, inexperienced driver, or are over 65 years oldÂ
- Have bad creditÂ
- Use the vehicle for a ridesharing service or another high-risk activityÂ
- Drive a high value or specialized car
- Had your license suspended or revoked
- Let your insurance lapseÂ
Lowering Your Risk
If you’ve been flagged as a high-risk driver, there are some things you can do to reduce your risk in the eyes of the insurance company. Reducing your risk can lead to lower premiums.
First, if you are high risk due to moving violations, take a defensive driving course. Speak with your insurance agent before taking a class to ensure it’s approved, though.Â
Also, practice safer driving behaviors while on the road. Follow the speed limit and obey all laws. After you hit the three-year mark without any tickets, your premium should decrease.
If you’re high-risk because of a DUI conviction, speak to your insurance company about installing an interlock ignition device. While most companies will not reduce the rates, some will, so it’s worth exploring.Â
Improving your credit score can also lower your premiums. Some insurance companies charge more for bad credit scores, so make your payments on time and reduce your credit-to-debt ratio.Â Â
SR-22 Certificate and High-risk Insurance
If you require high-risk auto insurance because your policy lapsed, or your license was suspended or revoked, you might need an SR-22 certificate. This certificate is not insurance. Instead, it is proof that you have the required liability insurance. Your insurance company will issue the certificate and send it to the necessary state office on your behalf.Â
High-risk Insurance Restrictions
Some high-risk policies include restrictions. For example, you might be the only person protected when driving your vehicle. If someone else drives your car, he or she won’t be covered. Also, if you are in an accident and the court assesses punitive damages, your policy might not cover it. Finally, the company might review your driving history annually and increase your rates if you have any infractions.Â
Because of these restrictions and the high cost of coverage, work hard to reduce your risk, so you can get a standard policy soon.Â
Getting High-risk Insurance
Finding high-risk auto insurance is a bit harder than purchasing a standard policy. Some major insurance providers offer high-risk coverage, so you can begin shopping there. However, you might have to use a company that specializes in these policies. When you choose such a company, you’re less likely to get turned down for insurance.Â
As with any insurance policy, you should compare quotes before purchasing high-risk coverage. Companies use different formulas for assessing risk. One company might see you as extremely high risk, while another might view your risk at a moderate level, meaning you’ll pay less. After you compare quotes, you can purchase your policy and hit the road once again.
What Is High-risk Auto Insurance?Â Â is a post from Pocket Your Dollars.
Recent data suggests that the average driver will spend close to $100,000 onÂ car insuranceÂ over their lifetime. That’s a staggering sum of money, especially when you consider estimates that suggest Americans will pay over $500,000 in that time just to own, operate, and maintain a car.
$100,000 is a lot of money to spend on something that you may never benefit from, something that you’re only buying because your state authorities told you too. But whileÂ carÂ insuranceÂ policiesÂ are essential, the amount that the average consumer spends on them is not.
In this guide, we’ll look at the ways you can save money onÂ autoÂ insuranceÂ premiumsÂ and get the most value out of this necessary expense.
Build YourÂ Credit Report
Never underestimate the value of a highÂ credit scoreÂ and a cleanÂ credit report. Not only can it help when applying for a car loan, increasing theÂ valueÂ of the carÂ you can purchase and decreasing the interest rates you’re charged, but it will also reduce yourÂ carÂ insuranceÂ rates.
There is no easy and quick way to turn a badÂ credit reportÂ into a goodÂ credit report, but there are a few simple changes you can make that could increase your score enough to make a difference. These include:
- Stop applying for new lines of credit.
- Become an authorized user on a respectable user’s credit card.
- Increase credit limits on your active credit cards.
- Pay off as much debt as you can, focusing on credit cards and personal loans first.
- Don’t close your credit card accounts after clearing them.
If you don’t have any credit at all, which is true for many teen drivers getting behind the wheel for the first time, try the following options:
- Credit builder loans
- Secured credit cards
- Lending circles
Choose Your Car Carefully
AÂ new carÂ is a great way to get a high-tech, customized vehicle, but it’s not ideal if you’re looking to save onÂ insurance costs.
New vehicles cost more to insure because they are a greater liability, with more expensive parts and greater overall value. If you want to save on yourÂ autoÂ insuranceÂ coverage, look for a car that is at least a few years old, has a number of safety features and a high safety rating.
The cheaper, the better, but only to a point. You want something that won’t leave you in complete financial ruin if it’s wrecked in aÂ car accidentÂ and you don’t have the insurance to cover it, but something that won’t breakdown every few miles and leave you stranded and broke every other week.
Drive Safely and Prove Your Worth
YourÂ driving recordÂ is just as important as yourÂ credit report, if not more so. The more at-fault accidents, traffic tickets, andÂ insurance claimsÂ you have, the higher yourÂ carÂ insuranceÂ ratesÂ will be.
A single conviction won’t last forever and the impact will eventually dissipate, so even if you have a few blemishes on your record now, just keep driving safely and you’ll be able to reap the benefits before long.
It takes time to prove your worth toÂ insurance companies, but there are a few things you can do to expedite this process. The first is to take aÂ defensive driving course. In some states and for some demographics (mostly seniors and young drivers), you’ll be offered a discount for completing one of these courses.
The next step is to consider a usage-based program. These are offered by most majorÂ insurance companiesÂ and can track yourÂ driving habitsÂ to determine what kind of driver you are. If you’re driving safe and doing veryÂ low mileage, you could start seeing some noticeable changes in just a few months. The majority of providers will even give you a discount just for signing up.
Pay Everything Upfront
Most policyholders pay their premiums monthly and it may seem like thatâs the best thing to do. $100 a month seems infinitely more manageable than $1,200 a year.Â
It is an attitude that many people have, and itâs one that often leads to debt and poor decisions.
Millions of Americans have credit card debt because a $200 monthly payment seems more achievable than a $5,000 payoff, even though the former carries a phenomenal interest rate. It’s also why countless first-time buyers rush into getting mortgages with small down payments and high-interest rates, even though doing so could mean they are paying twice as much money over the term.
Whenever you can benefit from making an upfront payment, do it. This is true for your loan debt and credit card debt, and it’s also true for yourÂ carÂ insuranceÂ premiums.
Many insurance providers offer you an upfront payment discount of up to 5%. It doesn’t sound like much, but every little helps. If you have a $3,000Â carÂ insuranceÂ policy, that 5% adds up to $150. Add a few more discounts and you can save even more money and make an even bigger dent in yourÂ insurance rates.
Combine Policies and Vehicles
Insurance companiesÂ that offer multipleÂ types of insuranceÂ tend to offer discounts when you purchase several products from them.
Known as multi-policy discounts or “bundling”, these offers are common withÂ homeowners insuranceÂ andÂ auto insurance, but they are also offered withÂ rentersÂ insurance andÂ life insurance.
You can combine several vehicles onto the sameÂ autoÂ insuranceÂ policy, as well, saving much more than if you were to purchase separate policies.
These discounts are essential for multi-car households, but they are not limited to cars. Many insurers will also let you add boats, ATVs, motorcycles, and other vehicles onto the same policy.
Before you settle on a single policy,Â shop around, compare as manyÂ car insuranceÂ quotesÂ as you can, try multiple different insurance options (uninsured/underinsuredÂ motoristÂ coverage,Â comprehensive coverage,Â collision coverage) and make sure you’re getting the lowest rates for the best cover.
Too many drivers make the mistake of going with the same provider their friends or parents have; the same provider they have used for a number of years. In doing so, they could be missing out on huge savings.Â
You could be forgiven for thinking that all providers offer similar rates and that the difference between them is minor. But regardless of your age, gender, and state, the difference between one provider and the next could be up to 200%!
Check if You’re Covered Elsewhere
CarÂ insuranceÂ companiesÂ offer a number of add-ons and optional coverage options. These are enticing, as they cover you for numerous eventualities and some of them cost just a few dollars extra a month. But all of those dollars add up and could result in you paying much more than you need for cover you already have.
Roadside assistance is a great example of this. It will help you if you are stranded by the side of the road, assisting with services such as tire changes, fuel delivery,Â towing, and more. But if you have a premium credit card or are a member of an automobile club, you may already have that cover.
The same goes for rental car coverage, which is often purchased at the rental car counter. Although it has its uses, if you have anÂ autoÂ insuranceÂ policy, travel insurance, and a premium credit card, you’re probably already covered. In fact, many Visa credit cards offer this service completely free of charge when you use your Visa to pay the bill, but only if you reject the waivers sold by the rental car company.
Bottom Line: BestÂ AutoÂ InsuranceÂ Companies
âCarÂ insuranceÂ coverageÂ varies from state to state and provider to provider. There is no “best” company, as even the ones with consistently affordable rates will not be the best option in all states or for all demographics.
In our research, we found that GEICO was consistently one of the cheapest providers for good drivers, bad credit drivers, and even high risk drivers. GEICO also offersÂ personal injury protection,Â collision insurance,Â medical payments,Â uninsuredÂ motoristÂ coverage, and more, making them the most complete provider for the majority of drivers.
However, in some states, local farm bureaus come out on top, offering very cheapÂ bodily injuryÂ liabilityÂ coverageÂ andÂ property damageÂ liabilityÂ coverage, and giving policyholders a level of care and attention that they might not find with the bigger, national providers. USAA, which offers cheapÂ car insuranceÂ to members of the military, also leads the way in the majority of states, but only for those who meet the criteria.
Simply put, there is no right insurance provider for you, just like there is noÂ right coverage. That’s why it’s important toÂ shop around, chop and change your coverage options, and don’t assume that any type of coverage or provider is right for you until you’ve looked at the numbers.
How To Get The Most Out Of Your Auto Insurance Coverage is a post from Pocket Your Dollars.