Monday, May 11, 2009

Always Beware Of Low Premium Auto Insurance

By Graham McKenzie

You always want to get the best deal with both the lowest cost and required coverage, while settling for car insurance. If you find a company offering an insurance deal at extremely low cost then beware ? there might be something fishy about it. Look around, and you will find other companies providing insurance plans, which are cheap and at the same time offer the coverage you need.

While deciding on car insurance, the prerequisites that you will need to look for include ? the required coverage, low cost, and no hidden charges. The type of plan that you get would depend on the kind of vehicle that you have and your financial condition. Usually, if you own a really nice car then you will want a better insurance for it. This indicates a higher coverage or simply diverse types of coverage.

Even auto insurance dealers calculate your premium in almost the same manner. First they evaluate your car?s ISO, a symbol on your vehicle, which tells the insurer the amount of money that would be needed to fix your car compared to other cars. The second step includes an evaluation of your credit history as well as your driving record. After this, insurer may take into account other factors like the present state of your car, how much you drive and, your age.

Since most of the insurance companies follow the same process of evaluation, it is very hard to comprehend why their premiums vary so much. Its natural that premiums vary from company to company, but the amount of coverage you get and the type of insurance plan you have are also the deciding factors. You must ensure that your plan provides you the sufficient cover just in case of an accident, so do your research well to make certain that you know the disparity between the plans.

Be very wary, before you make a deal. Sometimes the insurance companies hide extra charges or put some terms in the agreement that makes it worthless for you when you need it the most. It is very important to go through the entire agreement before signing it. If you find a plan which is too good to be trusted then you must take the help of your attorney to have a look at the agreement before signing.

Sometimes the rates really are as good as they seem. There are many ways of lowering your insurance premiums, although many of them are simply discounts. If you have good credit and a clean driving record you can expect to get much lower rates then everyone else. It also helps if you are a non smoker, over 25, and have a car that is not sporty.

Another way you can lower your premiums is by getting a "safe car". These cars are noted by insurance companies for their design, which is naturally safer. In a crash people are less likely to be injured and the car is less likely to get damage. They may also included features like airbags and anti-lock brakes. Since these vehicles incur less damage than others, insurance companies are willing to hand out lower premiums to their drivers.

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