There are many types of car insurance. When buying car insurance, many novices will blindly buy the car insurance recommended by the salesperson, making you waste a lot of money. Choosing the right car insurance for yourself requires serious consideration. It is not only in compliance with legal regulations, but also to protect yourself and your vehicle from unexpected losses.
The following suggestions may help you choose the most cost-effective car insurance.
Car insurance is essential.
1. Compulsory insurance
A unified charging standard is implemented nationwide, and the fees vary according to the specific insurance situation. Compulsory insurance is one of the five insurances and all car owners must purchase it. The current cost is 950$ per year.
2. Car Damage Insurance
The required vehicle damage insurance in commercial vehicle insurance is usually the highest premium part, and its cost depends on the comprehensive calculation of the basic premium, vehicle value, and insurance rate. Specifically, the cost of vehicle damage insurance is determined by the basic premium plus the ratio of the vehicle's residual value to the purchase price of the new car multiplied by the rate. At present, it is generally around several thousand $, and the specific amount will vary depending on the vehicle.
3. Third-party liability insurance
It is also one of the important protections that must be considered when purchasing auto insurance. The coverage usually ranges from 500,000 to 1 million. For example, the cost of purchasing 500,000 insurance is about 1,467$, and the cost of purchasing 1 million insurance is also 1,467$.
4. Insurance without deductible
Usually covers both vehicle damage and third-party liability, which means no deductible is required. The specific calculation method is to take the total premium of vehicle damage and third-party liability, and then multiply it by 15%.
How to buy the most cost-effective and practical
1. Compare quotes and policies from different insurance companies
Different insurance companies may offer different insurance rates and policy terms. Therefore, it is important to compare quotes and policies from multiple insurance companies. You can get quotes through the insurance company's website or third-party price comparison websites, or you can contact the insurance company's agent directly for detailed information. When comparing, pay attention not only to the premium, but also to whether the coverage and terms of the insurance policy meet your needs.
2. Consider raising your insurance deductible
The insurance deductible is the portion of the cost you have to pay out of pocket when you make a claim. Usually, if you choose a higher deductible, the insurance company may give you a discount on your insurance rate. Therefore, if you can afford to pay a higher out-of-pocket amount when needed, you can consider raising your insurance deductible to reduce your insurance costs.
3. Consider various additional options
In addition to basic liability insurance and collision insurance, there are some additional options to choose from, such as rental car compensation, rescue services, glass insurance, etc. When choosing these additional options, you should evaluate them according to your actual needs and avoid unnecessary expenses. Sometimes, some additional options may not be necessary, and you can save insurance costs by removing these options.
4. Review and update your insurance plan regularly
Over time, your driving habits, vehicle condition, or insurance needs may change. Therefore, it is important to review and update your insurance plan regularly. By adjusting your insurance plan promptly, you can ensure that you always have a suitable and cost-effective car insurance.