If you’re looking for lower rates on adequate auto insurance coverage then you need to be aware of some simple things that could result in massive savings. Here are some…

Staying claims-free will result in a good discount. Some insurers may not offer this without some coercion.

If your insurer is one of the few who don’t offer this discount tell them point-blank that you’ll switch to another insurer. With this kind of history getting a far lower rate is certainly very easy since claims-free policy holders are every insurer’s dream.

Most insurers will do all within their powers to ensure they don’t lose you and this should lead to some compromise on their part.

You’ll pay a lot more if you live in New York City than you would if you lived in some sparsely populated town. If you can live in a rural area you’ll get the best rates possible for your profile because the risk of vandalism, crash or theft is so low in such areas.

It is highly recommended that you have the minimum bodily injury liability coverage stipulated by law but then add an umbrella policy. The more substantial your assets, they more this recommendation is true in your case.

For those who don’t know what bodily injury liability coverage is, it is the part of an auto insurance policy that compensates passengers in your car along with the driver and passengers in the other car if an accident occurs. It protects your assets from lawsuits.

If this coverage type takes care of such liability issues, why is still recommended that you get an umbrella policy? The simple reason is that the liability coverage included in any auto insurance policy is usually inadequate. If your liability coverage can’t take car of their medical bills and damages awarded against you, you could lose all your assets, life savings and even your home. But if you have an umbrella policy, you’re almost certain that it can handle the most extreme case.

You save on many ends with an umbrella policy: It helps you pay lower rates, gives you superior liability coverage on auto related issues but still covers liability claims that may arise else, for example, your home.

Price-wise, you get much more coverage per premium dollar with an umbrella policy…

If a 35-year old man who lives in New York City wants to raise his bodily injury liability coverage to $100K/$300K from $25K/$50K, his rate will increase by $300! Now how does this compare to the fact that he would get an umbrella policy with coverage worth $1 million for less than that? Furthermore, he could make it $2 million by just paying only about $75 more. If you intend to buy more coverage it will cost you only $50 per million thereafter (This is based on a report by the Insurance Information Institute).

See? That’s superior coverage for a lot less — That’s the advantage in adding an umbrella policy instead.

Below are two of my sites. Get more tips and find dirt cheap rates at auto insurance comparison and low cost car insurance. Chimezirim enjoys sharing how to find superior coverage for less.

categories: auto insurance,insurance,autos