Find the car insurance that is right for you
When you move into a new place, you'll need to notify your car insurance company of your move as your location can have an impact on your premiums. This is a great time to compare rates from other companies to determine if you should switch. When comparing and selecting car insurance, it's important you get the insurance that fits your lifestyle.
To determine if you have the correct insurance you should check with your state's department of insurance. Car insurance requirements should be available online or you can contact them by phone. Requirements can vary from state to state so if you just moved to a new state the requirements may not be the same as your old one. Also, if you have a car loan, you are required to maintain a certain level of insurance so be sure to check with your lender regarding the insurance required. The department of insurance also keeps records of complaints against insurance companies. If you want to change companies, you should ask friends, family and coworkers for recommendations or past problems.
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Common types of car insurance coverage include collision, bodily and personal liability, uninsured driver and comprehensive.
- Collision
- This helps pay for car repairs or replacement costs if your car rolls over or you hit another car. Usually you will pay a deductible and additional costs are covered by the insurance company. The higher the deductible the lower the premiums you pay.
- Liability
- This covers medical expenses and lost wages of injured people if you're at fault in an accident. It also covers damage to another person's property if you're at fault. Most states require that you carry liability coverage in your car insurance.
- Uninsured Driver
- This covers medical expenses and lost wages of you and others in your car may have if you are in an accident with an uninsured driver. It will also cover damage to the car and property. Sometimes it will cover damage from hit and run accidents. Many states require that you have this coverage.
- Comprehensive
- The pays for damage from incidents like fire, vandalism and sometimes theft. Usually you will pay a deductible and additional costs are covered by the insurance company. The higher the deductible the lower the premiums you pay.
Once you've determined the amount of insurance you need, it's important to contact several companies as rates can vary significantly. If you move, it's important to inform your insurance company and have your policy updated. Moving can affect your rates, delay payment of a claim or lead to claim rejection.
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