May 1st, 2014
While a vehicle is likely one of the largest purchases someone will make in their lifetime, it's important to factor in all costs associated with it. Considering how much gas will cost for one car compared to another could have a resounding impact on savings, especially if one of the vehicles is a hybrid and the other is a gas guzzler.
Use comparison tools
When shopping for anything, it's essential to compare different products. Not only will this help someone make a more informed decision about their insurance policy, but it will also likely save them money. And consumers don't have to tediously call every single insurance company in order to compare prices and coverage, as comparison tools are already available that have done all the work. However, it's essential to pick a reputable company that is financially stable.
Get a high deductible plan
Picking a plan with a pricey deductible has its positive and negatives. On one hand, a high deductible will likely keep monthly insurance premiums low. However, on the other, if something does go wrong, a car owner will have to pay a more expensive upfront cost. So, is it cheaper to choose a plan with a high deductible? According to Loretta Worters, a spokeswoman for the Insurance Information Institute, it is.
Worters told Fox Business that by increasing a deductible to $500 from $200, someone can save 15 to 30 percent on collision and comprehensive coverage. However, increasing to $1,000 could save 40 percent.
Other experts note that the timing of when a policyholder opens a high deductible plan also matters.
"Don't raise the property deductible well past the point of sensible premium reduction on the theory that 'it will never happen to me'," Bill Wilson, vice president, education and research at Independent Insurance Agents & Brokers of America, told the news source. "The preferred approach is to increase deductibles during good economic times when you can afford a $1,000 - $2,500 loss while accumulating a deductible fund that can be used during hard times if a loss actually occurs then."
Don't forget motorcycle insurance
As this time of year usually sees an increased amount of drivers on the road, and therefore the likelihood for more accidents, motorcyclists will also want to be as thorough when shopping for coverage.
"The most common accident we see is a driver of a car making a left-hand turn in front of a motorcyclist coming in the opposite direction, and the motorcyclist has no time to prepare and stop for that," said personal injury attorney Scott O'Sullivan. "That's where we see some of our most typical and most terrible accidents."
While riders should always wear safety gear - helmets, gloves, leathers and boots - it's also important to get motorcycle insurance. This coverage can make all the difference during an accident, even if it's a fender bender, and will ensure a rider has peace of mind while on the road.