Millennials Guide on Picking the Right Car Insurance
Millennials generally are an optimistic group, while this is a good way to live life, being overconfident sometimes can be costly. Compared with older drivers, 35% of millennial aged 20-30 do not have car insurance.
When it comes to car Insurance, being a terrific driver is not enough, something is bound to happen to your car that may have nothing to do with your skills as a driver, and as such you need to be prepared.
To avoid chances of ending up in financial hardships, car insurance is critical. Read on to know what kind of coverage you will require.
Collision Coverage
Accidents happen on the daily more so during the festive seasons and these are the ones that are reported. Accidents are costly to drivers with collision claims costing approximately half a million, paying such a hefty amount from your pocket is draining.
Car Insurance is not a fun way to spend money but it does comes in handy in such instances. Auto Insurance may not as fulfilling or exciting as getting the latest phone in the market or vacationing in a beach yet, it has been made a legal requirement in many countries for a reason.
Uninsured Motorist coverage
In case your car is hit by someone without an auto insurance, the uninsured motorist coverage will cover your car repair costs, medical bills, funeral expenses in the worst case scenario and any pain and suffering costs.
Body Injury Liability Coverage
As the name indicates, this auto insurance will cover expenses like legal fees, medical bills, rehabilitation cost, funeral costs and any other expenses occurring as a result of an accident that causes injury to you or your passenger as well as the driver and passengers in other vehicles or pedestrians.
Property Damage Coverage
The property damage liability coverage protects one in case of an accident that harms or destroys people’s property for instance a fence, it will help pay for the repairs or replacement if need be. This however might not cover the damage to your own car and you will require the Collision coverage.
Comprehensive Coverage
Comprehensive coverage does not mean it covers everything, it however covers damages to your car that are not as a result of collision for instance vandalism, theft, natural disasters, riots, fire, damages by animal and falling objects among many others. Comprehensive covers also pays for theft of your car or any of its part.
Insurance rates for new vs. old cars
Unlike the popular belief, new cars are not more expensive to insure than old ones. Advanced Safety features in new cars ensures that damage if any will be minimal hence low rates unlike old cars that might cost more to fix. Auto insurance are mostly determined by the expected amount of damage to your car.
Car Insurance during Leasing
When leasing a car, dealers may require you to get gap insurance in case the car is stolen or involved in any accident. Gap insurance covers the difference between the value of the vehicle and the amount you owe on the lease, some lenders already have this kind of insurance, be sure to go through your lease contract carefully.
What contributes to Car Insurance Rates?
Deductible– This is the amount you pay out of your own pocket in the event of an accident. The higher the deductible the lower the car insurance.
Gender– Men pay more than women
Age– The younger the driver the higher the rates
Demographics– City residents are more likely to get in accidents than rural areas, same as areas with more people.
Violations– Moving violations like speeding can also increase your rates, obey the law to keep your rates low
Claims– The number of claims you file increase your rates, the higher accident prone you are, the more you will pay.
Type of vehicle– Sports car insurance cost more than sedans. The more expensive the car, the more you pay.
Tips for lower Auto Insurance
Avoid gaps in coverage– Ensure you are covered at all times even when you are changing policies.
Compare rates for different cars- Compare premiums from different car insurance when shopping for a new car.
Claim your discounts– You are eligible for discount depending on your insurer if your car has advanced safety features, anti-theft or anti-locks brakes.
Auto insurance is a must have with many types of coverage being mandatory in certain countries. Besides legal reasons, car insurance protects you against financial hardship in the event of theft, damages and injury to others and yourself. While car insurance is of utmost importance be on the look out to avoid for paying for coverage you might not need or use.
Shop around to get the best auto insurance company that can offer you a reliable deal. Based on your financial status and the age of the car, you can get quotes from different car insurance companies to compare their policies.