Understand Your Insurance Options: Tips from a Tampa Bay Area Audi Dealer

May 9, 2013

When you know what your options for car insurance are, you can make more informed choices and find a policy that best meets your needs. The following insurance guide offers tips from your Tampa Bay area Audi dealer for understanding what insurance providers offer drivers:

Choosing Your Insurance Deductible

One of the decisions you will make when setting up an insurance policy or making changes to your insurance policy involves your deductible. The deductible is the amount you are required to pay when placing an insurance claim before your insurance company will pay anything. If your deductible is $500, you are responsible for paying for the first $500 in repairs before the insurance company will cover the rest.

The higher your insurance deductible, the lower your insurance premiums will be. If you are someone who can keep enough money in your bank account to cover the deductible when you need it, having a high deductible is a good way to save money on your annual insurance premiums. On the other hand, if you are someone who tends to run their bank account dry and would struggle to come up with a high deductible – it may be better to pay a little more year round and not have to come up with as much if you are in a car accident.

Insurance Rates Based on Risk

The other thing to understand about your insurance is that the amount you pay is mostly based on your level of risk. If you are someone who has had multiple car accidents and insurance claims, you are going to pay higher insurance premiums than someone who has been driving for years without accidents, tickets, or insurance claims. If you are considered a high-risk driver, make sure you get new quotes after three to five years from your last ticket or accident as you should be able to get a lower premium at that point.

For very high-risk drivers, such as people who have gotten multiple speeding tickets or a DUI, may need to use a state insurance pool to obtain insurance.

Understand Possible Insurance Discounts

There are multiple options for drivers to find discounts on their insurance policies. Students with good grades can often get a discount; accident-free drivers generally qualify for insurance discounts; taking defensive driving can qualify you for insurance discounts; or being a member of AAA may result in insurance discounts.

Always compare your insurance options across multiple companies to see which provider offers the coverage you need for the best rates.