There are many types of car insurance. Many may be concerned. I want to keep my insurance premiums as low as possible, but I don’t know how to choose one. Also, even if the insurance premium is cheaper, it will be overwhelming if the emergency compensation is insufficient. Therefore, this time, we will present the tips on how to select the most suitable car insurance with a good balance between insurance premiums and compensation, so do check it out.
What is the insurance premium system for automobile insurance?
The basic insurance system, like car insurance, consists of mutual aid that spends money to compensate the victim. As a result, many insurers tended to introduce their own form of mutual partnership until the law was amended in 2000. The breakdown of premiums paid by the insured to the insurance company are net premiums and additional premiums. Net premiums are the amount used for insurance claims paid in the event of an accident. Additional premiums, on the other hand, are the money an insurance company spends to keep its business going, such as the salaries of employees who work for the insurance company and a majority commission for the agency.
What are compulsory automobile liability insurance and voluntary insurance?
In addition, there are two types of auto insurance: liability insurance and voluntary insurance. Auto insurance is insurance that car owners are required to carry under the Auto Insurance Act. Auto liability insurance covers medical and comfort costs in the event that another person is injured or killed in a car accident.
The maximum payment is $ 289,300 per victim at death, $ 385,700 for disability damages, and $ 11,570 for injury damages. However, the victim’s belongings, such as an injury or the car the accident partner was riding in, will not be compensated.
On the other hand, voluntary insurance is insurance that covers damages that cannot be covered by mandatory automobile liability insurance. For example, there is personal liability insurance that covers personal liability that exceeds the payment limit for liability insurance. In addition, we will cover liability insurance in the event of damage to someone else’s building or car due to an accident, compensation for personal injury, and compensation for damage to passengers in the event of injuries due to a car accident. And so on. Many car owners have their own insurance in addition to car liability insurance to prepare for accidents.
How to make insurance premiums even cheaper?
There are two types of auto insurance: direct type (mail order type) and agency type. The direct type (mail order type) is a method of contracting directly with an insurance company via the Internet or email without going through an agency. We rarely contact insurance company employees until an accident occurs and insurance is needed.
Agency type, on the other hand, is a method in which an agency submits an insurance quote or contract on behalf of the policy holder. Direct insurance does not incur agency fees, resulting in lower additional premiums and, as a result, lower total premiums.
Careful consideration of coverage is also important for cheaper auto insurance. Auto insurance coverage is subdivided and insurance premiums fluctuate. For example, covering everyone who drives a car will result in higher insurance premiums, and limiting it to car owners will result in lower premiums.
With auto insurance, you can keep your premiums low by excluding a single accident caused by car damage, hit and run, or a natural disaster. Compensation is safer, but insurance premiums tend to go to waste even if you compensate for an accident that is highly unlikely to occur or that you rarely drive.
To obtain affordable premiums, it is important to know the compensation you need. Insurance premiums can be further reduced by investigating high-risk accidents, thefts, disasters, etc. when driving a car and determining the necessary compensation.
Will insurance premiums be cheaper if you choose a compatible insurance company?
There are many insurance companies that sell car insurance and it is not uncommon for insurance companies to offer their own discounts. Also, even with the same discount service, the discount rate and content may differ from company to company.
For example, there are two companies that sell products with low insurance premiums when mileage is short for a certain period of time, one is 10,000 km or more and less than 10,000 km, and the other is only 10,000 km. Suppose there are differences such as subdivisions of more than one kilogram, less than 5,000 kilograms, less than 3,000 kilograms, and so on. In this case, the insurance premium can be cheaper if you contract with a subdivided company.
In this way, even for the same product, the premium may be higher or lower depending on the exclusive rules of the insurance company. This is the compatibility with insurance companies. Some insurance companies sell products that limit the target audience, saying that if this condition is met, the premium will be considerably lower. Therefore, when choosing an insurance company, compare not only the content of the product, but also the mileage and age requirements. Also, if you look at the insurance company’s own rating system, it will be easier to choose a compatible insurance company.
On the other hand, if you are trying to lower your insurance premiums but are concerned that it is not cheap, it may not be compatible with your insurance company. Check the terms and conditions of another insurance company that offers products with similar coverage. You can find an insurance company with a low premium under the same conditions as the products of the insurance company you are currently hiring. Insurance companies release new products regularly, so it’s a good idea to review them regularly.
What are the tips for choosing cheap car insurance?
When choosing auto insurance, it is important to compare multiple insurance companies. If you apply through an agency, agency employees can compare products from various insurance companies and get a quote. However, if you choose direct insurance, you will have to do your own comparison. Therefore, we recommend a bulk quote.
Bulk quotes allow you to compare products from various insurance companies simply by entering the terms yourself. It’s easy to do anywhere on your smartphone or computer, making it convenient not only when making a new contract, but also when you want to review your insurance because it’s time to renew your contract.
Due to the aging population and the increasing and decreasing number of car drivers, car insurance needs to be reviewed regularly. We recommend that you use our bulk quote to choose the best car insurance.
Even if the product is similar to car insurance, the insurance company’s own discount system applies, so there is good and bad compatibility depending on the person. Even if it is supported at the time of enrollment, it may not be supported by the product or the insurance company due to changing conditions. For car insurance, you should check your contract regularly and change your insurance company if necessary. In that case, we recommend that you use a bulk quote that allows you to compare your insurance coverage with various insurance companies.