Cheap auto insurance on your new car – is it worth it?

1

• Cheap Car Insurance

2
Cheap auto insurance on your new car is it
worth it?
Full Coverage vs. Partial Coverage (what you may
have now) If you are currently driving an older
car, what car guys call a beater chances are
you have what is known as partial coverage
often called PLPD insurance. PLPD stands for
public liability and property damage. This
basic insurance covers the damage your vehicle
would cause if you were involved in an accident.
It also satisfies the minimum amount of coverage
required by your state. It does not cover any
damage to the vehicle itself.
3
Full coverage auto insurance (an insurance policy
that also contains comprehensive and collision
coverage), on the other hand, covers just what
the name implies not only the damage your
vehicle would cause in an accident, but also the
damage to the vehicle, itself. To make full
coverage cheap car insurance more affordable, it
is available with differing levels of
deductibility. The deductible is the amount
that you as the insurer would contribute to the
repair bill. As an example, if you were in an
accident and it caused 2000 in damage to your
vehicle and you had a 500 deductible collision
policy, you would contribute 500 towards the
damage, while the insurance company would pay the
balance of 1500. If the damage was under 500,
you would pay the entire amount. The higher the
deductible (the more you would contribute), the
lower your insurance premium will be.
4
Which one should you get? If you are driving an
older car (one that is paid off), partial
coverage insurance often makes sense. If the car
is only worth a couple of thousand dollars, the
money that you save could easily equal the value
of the car in a couple of years. Full coverage
insurance, although more expensive, gives you
peace of mind, since, even in the worst accident
(other than a total loss), you would only be
responsible for the deductible amount to repair
your car. Why is this important if Im buying a
car? If you finance a car, the bank will require
you to carry comprehensive and collision
coverage.
5
The Bottom Line If the car youre currently
driving has partial coverage, the difference in
cost could be 100 or more a month. At Auto
Credit Express, we are aware of the difficulties
many new car buyers have in understanding the
total cost of ownership of a new vehicle
especially for bad credit car loan customers.
So if you are planning on buying a new car, be
sure to check the insurance rates before you sign
on the dotted line. Make sure to include the
added cost of insurance in your budget.
Thank You!
6

• To Know more details on Cheap Car Insurance
  http//www.bajajallianz.com/Corp/motor-insurance/c
  heapest-car-insurance.jsp

https//www.facebook.com/BajajAllianz
https//plus.google.com/bajajallianz/posts
https//twitter.com/BajajAllianz
https//www.youtube.com/user/BajajAllianzGIC