When shopping around to find the best motor insurance rates you will probably be looking to compare premiums from one insurer to another. However, rates are not the only variable that will keep your insurance costs down, you also need to look at the policy itself and the coverage you will be getting. Some of the provisions are vital while some are merely a nice addition and many more can be simply an unnecessary cost depending on your situation.
The best motor insurance policy will provide adequate coverage for both your family and your assets. Even though most laws require insurance policies that cover medical expenses, rehabilitation and burial costs for your passengers and other people involved in the accident, including pedestrians, the amounts are quite low and inadequate. Depending on your income and level of your assets, you should be looking at buying at least $100,000 coverage per person and $300,000 per accident.
The same holds true for insuring your car as most legal limits are for $15,000 and considering that a new car averages around $25,000. So you need to consider getting coverage for at least $30,000.
If your car is worth less than $5,000, you probably don’t need to include these because over time the premiums will add up to much more than the insurer will have to pay out even if your car is completely destroyed. Additionally, remember that if an accident isn’t your fault the other driver’s insurance will be covering the repair costs.
You can also get substantial discounts on your motor insurance if you buy more than one type of coverage from the same insurer. Think of it as volume discount. So, if you buy homeowner’s insurance as well as car insurance from the same company you can get anywhere up to 15 percent discount on your rates.