3 Simple Things You Should Know about Car Insurance
By: Avery Jackson
Tags: Insurance, Saving, Saving Money, Car Insurance

Saving Money on Auto Insurance

Although this may seem obvious once you read, it was brought to my attention by a close friend, and client. It then became apparent to me that not everyone is aware of this information. So, I decided to write an article.

First, let me give you a very basic understanding of the difference in automobile coverage, just so we are on the same page, in case you do not already know.

Knowledge Base

1. What is it is that I am required to have?

Liability insurance — the kind of coverage you are required to have — does not cover yourvehicle in any way…it only helps cover the costs of the other driver’s property and bodily injuries if you are found at fault in an accident. Minimum liability limits vary depending on which state you live in. For example, in North Carolina, the minimum is 30/60/25. This stands for the amount of money the insurance company would pay in the event you are at fault in an accident. The numbers stands for $30,000 per person, $60,000 per accident, and $25,000 property damage limits.

2. What is comp/collision coverage?

Comprehensive and collision coverage are the two types of car insurance coverage for physical damage to your vehicle. Comprehensive and collision coverage protect your car, while liability coverage protects you when you cause bodily injury or property damage to others. Comprehensive and collision are separate, optional, coverage that allow you to make claims for damage or total loss of your vehicle, regardless of who is at fault.

Comprehensive refers to auto insurance that covers damage to your car that is not caused by a collision. Examples of items covered by comprehensive insurance include:

· Windshield repair

· Damage by falling objects like hail rocks or tree branches

· Theft

· Vandalism

· Fire

· Natural disasters

· Civil disturbances

· Striking by animal (including deer) or bird

Collision coverage covers damage to your vehicle caused by contact with another vehicle or object, including rollovers. Collision coverage comes with a deductible, which means you are responsible for some of the initial cost to repair your vehicle.

While these two coverages are frequently discussed together, they can be purchased individually or jointly. For more information or help with your insurance policy, you can email avery.jackson@ncfbins.com, or text 336–963–0864.

3. How can I save money on car my insurance?

There are a few things you can do to pay less for comprehensive and collision insurance:

· Bundle auto insurance with home insurance

· Choose a car that is less expensive to insure

· Improve your credit score

· Improve your driving record

· Increase your deductibles

· Drop your coverage

This leads to the topic of why this article is being written in the first place.

Vehicle Paid-Off Strategy

When you purchase a vehicle, and it is financed, the bank will require you carry physical damage coverage with your insurance company. Generally, the minimum deductible limits they will allow are $500. Depending on your driving history, carrying these deductibles can be pretty expensive…

I want to make you aware that once your vehicle is paid off, you are no longer required to carry that coverage. People either forget to change their coverage, or they don’t realize they can take it off. Or of course, they need the coverage and choose to keep it to protect their vehicle from damage.

In the case of my friend, he purchased a vehicle that was 10 years old, financed a little bit of money and paid costly insurance until that vehicle was paid off. Immediately, we dropped the physical damage coverage and saved him almost $1,000.

This strategy is not for everyone, but it is a good strategy to know.

Pricing varies by auto insurance carrier, so apply logic when deciding to purchase, or forego, optional insurance coverage.

Prepare yourself to make a sound decision by getting auto insurance rates specific to your situation. However, it is also an emotional decision — you are the one who has to sleep at night.

Was this information helpful or simply obvious? Your feedback is encouraged!

If you still have questions about insurance, call us at 336–963–0864 to speak with a licensed professional.

Message from the author: My name is Avery Jackson and I was an athlete for about 87% of my life. From playing team sports literally every day, starting at 3 years old, to my senior year of college, the moment my career came to an end left me with a very odd and empty feeling.

I have sold cars, services (pressure washing and yard work), and now I am in the insurance business. After roughly one year in the business, I realized that it really is not about what I sell or do, as long as I am helping other people. To the degree of the lives you impact, at least in my mind, is the degree of which you are successful. That is what inspired me to write my first article to at least give a little bit of value. I would love any feedback. It is appreciated and encouraged!