Whether you are buying your first car or revising your insurance policy, it is important to know that you are adequately covered. It is easy to end up paying a higher premium, especially if it is your first car. Auto insurance is not something you want to rush into. It is better to take your time to explore the available options thoroughly. Doing so might save you hundreds of dollars or more.
Tips to Help You Find the Right Car Insurance Policy for You
- How much coverage do you need? Policy requirements differ in every state. Before you decide which insurance to go with, you must know the policy limits required in your state. Most people go with basic liability insurance, also known as one-way insurance, but you can decide to add comprehensive coverage or collision. Keep in mind that the higher the limits, the more you are protected.
One thing that will help you decide how much coverage you need is your driving habits. Do you take long trips? Do you speed? How are the roads in your area? You should also take into account your driving history. These are facts that an insurance company would also like to know to assess the risk accurately.
Remember, accidents are not the only risk to your car. You can have a clean driving history, but you live or work in a neighborhood where car theft is a possible risk. If that is the case, you might need to add comprehensive coverage and skip collision insurance.
- What deductible should you choose? If you decide to add comprehensive or collision insurance, you will have to decide on a deductible amount. A deductible is an amount you pay out of pocket, after an accident, before the insurance kicks in. Auto insurance deductible amounts usually range from $100-$2000. Most people go with a $500 deductible, but it depends on how much risk you are willing to assume.
- Research auto insurance companies – Besides the premium amount, you must also consider how an insurance company handles claims, payments, and other non-claim issues. The best way to get all the pertinent information is to do an online search. There are many top-rated auto insurance companies like Freeway car insurance that are well known nationally. Freeway Insurance has been in business for 35 years, offering affordable coverage and excellent customer service.
You can also ask for recommendations from your close friends and family but do your own thorough research on each company you consider. Compare company quotes and annual and monthly rates, among other things. Learn how the company will use your credit score to calculate your premium and if they factor in the type of car you are driving.
Some cars are more expensive to insure than others, so you should know where you fall and how it will affect your policy. It is important to gather all this information to make an informed decision when choosing the right auto insurance company for you.
- Read through your insurance policy – You must read through all the details of your insurance policy to know what you’re getting. If there is something you don’t understand, feel free to ask the insurance company to clarify the issue. A good auto insurance company will ensure that you understand everything down to the policy’s minute details.
Insurance companies can sometimes change the terms of their policies. Therefore, you must stay up to date with any changes made by your provider. It’s also important to review your policy from time to time to fully understand how it works and how it can benefit you.
Familiarize yourself with the information you will need to provide when filing any claims and how to make the process much easier for yourself. Of course, you do not want to be in such a position, but it is important always to stay ready and armed with the information.
- Know your discounts – Discounts are a great way to save money on your auto insurance policy. This is an important question you should ask every insurance company on your list before making a final decision. Some of the most common discounts include:
- Low mileage
- Good driver discounts
- Retiree discounts
- Students’ discounts
- Professional, association, or occupational discounts
- Winter storage discounts
- Environmentally friendly discounts
- A tracking device or alarm discount
Finally, when getting a new car insurance policy, you must cancel your old one. Be assured that you know and have all the necessary documents required by your new provider. Remember always to carry your proof of insurance with you in case the state requires it.