Car insurance can be expensive, especially if you don’t know what to look for when it comes to insurance rates.
It’s easy to just go with your company’s default plan, but that may not give you the best coverage or price possible.
Read this list of seven things to do before you insure your car in order to find the best possible option available to you!
Get quotes from at least three insurers
Once you have found a reputable insurer, getting quotes is relatively easy. The first step is to contact the insurance company and request a quote.
Once they have all of the necessary information they will provide a quote over the phone or email and send out an application for final approval.
Be sure to compare quotes from three different insurers so that you can find the best value for your money.
When comparing quotes it is important to take into account factors such as the cost of premiums and deductibles, what’s covered in the policy, whether or not there are discounts available for good drivers, etc.
It is also important to make sure that your chosen insurer offers a variety of coverage types including liability insurance and comprehensive coverages which can include third-party property damage and theft protection among other things.
Consider insurance costs when buying a car
Before buying a car, consider the insurance cost. If you are financing the purchase of a new or used vehicle, many lenders will require that there be proof of third-party liability insurance coverage for the duration of the loan term.
As such, it’s important to understand what type of insurance is required by your lender and factor this into your decision as to whether or not purchasing a vehicle is feasible for you.
Once you’ve decided on the type of insurance you want and how much coverage you’ll need, getting an online quote should be a simple matter of answering a few questions about yourself and your vehicle.
Be sure to include all relevant information when requesting quotes so that companies can give accurate estimates.
Determine the amount of coverage you need
If you’re looking for insurance, it’s important to know how much coverage you need.
The type of coverage that is best for you will depend on the location and age of the cars that are being insured.
You may also want to find out if you need any additional coverages such as comprehensive or liability.
Talk to your agent about which coverages would be the best fit for your situation. Consider whether you’ll need a deductible: A deductible is the amount you pay out-of-pocket when a claim occurs.
For example, say your deductible is $500 and your car gets damaged in an accident and needs $1,000 worth of repairs.
You would have to spend $500 out-of-pocket first before your insurance company pays anything.
Determine what level of customer service you prefer:
There are many different levels of customer service that can be offered by different companies including 24/7 emergency roadside assistance, concierge services, etc.
Decide whether to purchase collision and comprehensive coverage
You should consider purchasing collision and comprehensive coverage if your car is financed, over 10 years old, or worth more than $3,000.
If not, then you can save on premiums by opting for a liability-only policy. A good way to make this decision is to use the Insurance Information Institute’s helpful Car Cost Calculator.
The tool estimates how much insurance will cost for various scenarios (i.e., what type of coverage, the year of your car).
Exercise caution when buying private auto insurance:
When shopping for private auto insurance policies, be sure to carefully review each company’s rates and discounts before selecting one.
Keep in mind that some companies offer low rates but only have discounts available to those who live in certain geographic regions or belong to certain groups, such as the military.
In contrast, other companies may offer competitive rates but don’t have any geographical limitations or exclusions in their discount offers. As with most things these days, it pays to comparison shop.
Choose an insurer with a good reputation
Since the first insurance company was founded in 1759, there has been a long list of companies that have come and gone.
We have compiled a list of some of the most reliable insurance companies on the market today.
Call an insurer for information about rates: Most reputable insurers will give quotes over the phone without requiring you to file an application.
If you’re not sure which insurance company is right for you, this can be a good way to narrow down your options.
Make sure your existing insurance coverage includes everything: It is important to make sure that any auto coverage you are currently receiving is sufficient enough to meet your needs.
Some people may need additional coverage if they live in an area with higher-than-average accident or theft rates.
Speak with your agent to find out what type of coverage you might need before insuring your vehicle.
Your agent will also help answer any questions you might have as well as provide you with a quote.
Before choosing an insurance company, ask them how much their deductible is:
A deductible is the amount you pay towards damages before being compensated by the insurer.
it’s usually expressed as a percentage of the total cost to repair or replace damaged property, so it’s always better when this number is low!
Read the fine print
It’s important to read the fine print on any contract, and in this case it’s especially true.
When shopping for insurance, be sure to read through all the terms and conditions of the policy carefully before signing.
It’s also a good idea to ask questions about anything that isn’t clear, so there are no surprises later.
A company representative should always be able to answer basic questions about their policies, like what coverage is available and how much the monthly premium will cost.
Some features may not seem like a big deal at first glance but could end up being an essential protection; while others might seem important but may just add extra costs with little benefit.
The best way to find out is by asking the right questions before committing to one plan over another.
Review your coverage periodically
If you own a car and are looking for auto insurance, it’s important that you review your coverage periodically.
Your coverage will change over time as the value of your vehicle changes, which could lead to gaps in coverage.
You may want to consider purchasing gap insurance if there is a difference between the actual cash value of the vehicle and what is owed on the loan.
Consider reviewing these items with an agent or broker:
-What types of auto insurance do I have? -Do I need any additional coverage? What are my options?
-What discounts am I qualified for? What discounts am I eligible for but not using now because they’re more expensive than my current plan?
Which of my vehicles should be covered by this policy? Should they be insured separately or together under one policy?