| Buying the Right Car Insurance Going for the cheapest coverage can end up costing you big time. Here's how to get the right coverage, at the right
price. By Suze
Orman I find all the talk about low inflation the past few years to be absurd. Sure, some prices are holding
steady, but plenty of the costs we incur to merely maintain our lifestyles are going through the roof. What
we're forced to pay for auto insurance is a perfect example. According to the Insurance Information
Institute, auto rates are expected to rise 6 percent this year. And that's supposed to be good news because
in 2003 the average rate hike was 8 percent. If that's good news, we should all be scared to think about what
would qualify as bad news.
Given that the average auto policy now costs nearly $900 a year, I know how tempting it is to try and cut
corners on your coverage to save some money. My friends, that can be a really bad mistake. Find yourself with
a policy that won't cover damages you may have caused someone else (or their property) and you could find
them suing you. It's far better to have a policy in place that gives you a suitable amount of coverage. Yes,
it will cost you more, but you are buying important protection that can ultimately save you a ton of money.
And don't worry; after I explain what type of coverage you should have, I'll share some easy tips on how to
strategically reduce your overall premium costs by making smart choices on various options.
Drive the Right Deal
Auto insurance will never qualify as "easy to understand" and that increases the chances you could make a
costly mistake. I hope you know that your auto insurance actually provides four different types of coverage:
two are mandatory and two are optional. Everybody is required to have Bodily Injury Liability, which provides
coverage if you or anyone else is injured, and Property Liability Coverage, in case you damage another car or
piece of property. more...
How to Downshift Your Overall Costs
While you want to have plenty of coverage, there are a bunch of ways you can reduce what that coverage will
cost you. more...
Suze Orman has been called “a force in the world of personal finance”
and a “one-woman financial advice powerhouse” by USA Today. She is the author
of four consecutive New York Times bestsellers, including The Road to Wealth.
Suze Orman, a
Certified Financial Planner Professional®,
directed the Suze Orman Financial Group from 1987-1997, served
as
Vice President of Investments for Prudential Bache Securities from
1983-87, and from 1980-83, was an Account Executive at Merrill Lynch.
Watch Suze every Saturday night on CNBC.
Check www.suzeorman.com
for TV listings.
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