4 Tips for Young Adults Who Are Choosing a Car Insurance Provider - NYCM Insurance Blog

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Dec 7, 2017

4 Tips for Young Adults Who Are Choosing a Car Insurance Provider

When you have limited knowledge of how insurance policies work and what they cover, choosing car insurance can be quite daunting. If you have never purchased insurance before, or if this is your first time choosing insurance without parental guidance, look no further!


Consider Your Driving Record

Your driving record will affect your insurance rates because insurers see your driving history as an indicator of how you will drive in the future. If you have a clean driving record, they’ll expect you to continue to be a safe driver. However, if you have a record of speeding or if you have been in several accidents, they may consider you to be a “high risk driver.”


If you have accumulated a number of points on your license, you will likely be classified as a high-risk driver and automatically be subject to higher rates. This is because you are more likely to get into an accident and make an insurance claim than someone who is not classified as a high-risk driver.


Explore the Different Types of Coverage

Before choosing which insurance provider to go with, it is important to familiarize yourself with the different coverages and insurance terminology that are included when you commit to a policy. There are a variety of policy coverages available to individuals seeking auto insurance. These include:


1. Collision Coverage: Your vehicle will be covered if it gets destroyed or damaged in an accident. Coverage will be provided if you crash into another car or an object (like a tree). Generally, some or all of the repairs and associated costs will be taken care of by your insurer based on the terms and conditions of the policy you purchase.


2. Liability Insurance: Two Types

Bodily Injury Liability Insurance Coverage: In the event that you are at fault for hurting passengers, pedestrians and/or occupants of another vehicle, this coverage may pay for pain and suffering, which may be determined by the court. Note: insurance will not cover intentional harm or damage.

Property Damage Liability Insurance Coverage: Similar to bodily injury liability, this coverage applies if you’re at fault for damaging someone else’s property. Each policy varies in what it offers, so read carefully and choose wisely. Repair and/or replacement of damaged property such as fences, trees, houses and vehicles are usually covered. Note: Liability insurance does not cover damage you caused to your own vehicle (for that you would need Collision coverage).


3. Comprehensive Coverage: In the event that a natural disaster damages or destroys your car, you get hit by an animal or your car gets vandalized or stolen, this comprehensive coverage typically protects you from these types of instances.


4. Statutory Uninsured/Underinsured Motorist Protection (SUM): Car accidents are inevitable. In the event that you’re hit by someone that is uninsured or underinsured (carries insufficient liability limits to cover your loss) and you sustain serious bodily injuries, this coverage may handle expenses and pain and suffering that are not covered by the at-fault party. New York residents are required to have SUM coverage.


5. No-fault Coverage: It’s easy to forget that medical bills can arise post-accident. With this coverage, your medical bills will be taken care of no matter who is at fault. Some insurers will also pay medical expenses, provide dental care, or cover funeral costs for injured passengers in your vehicle. No-fault coverage is mandatory on all auto policies in the State of New York.


Estimate How Much Money You are Able to Spend on a Deductible

A deductible is the amount you are responsible for and have agreed to pay, before the insurance company will pay for your claim. For example, if your deductible is $500 and the repair cost is $900, you’re responsible for the first $500. Typically, the higher deductible you have on your policy the lower your premium payment will be.


Consider What Car You Will Be Driving

Insurers look at the year, make and model of your car when providing your rates. If you have, or plan on buying, a luxury or sports car, rates will certainly be higher because the car parts will cost more to repair/replace. Having an older car or a non-luxury brand will leave you with more affordable rates. Take the time to financially plan whether you can afford car insurance for a luxury vehicle.


By considering these tips, planning accordingly and thinking carefully, you will set yourself up with an insurance plan that is right for you. Best of all, you will have coverage and protection that provides value and reassurance when you need it. If you feel overwhelmed by the process, click here to find a local agent that will be happy to assist and provide peace of mind while making these important decisions as a vehicle owner.

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