Whether you are a car enthusiast with a collection of cars or someone who just passed the driving test, you will need auto insurance.But how do you choose the right insurance policy for your vehicle? Answering this question can be difficult in an industry renowned for complicated conditions and technical jargons.
Factors like your personal lifestyle and preferences as well as the laws and regulations need to be considered before making this important decision.We are here to help you find out theright insurance policy,but before that, we take a look at why you need one.
Need for an auto insurance policy:
As per the report of the Insurance Institute for Highway Safety, there were 34,439 fatal car crashes in the US alone in 2016. This resulted in 37,461 deaths. Regardless of the fatalities involved in a car accident, the financial fallout can be catastrophic for you. So you need to have the right auto insurance protection. The more you know about an adequate insurance policy, the better protected you are from the financial repercussions of a car accident.
Below you will find some important tips that will help youin choosing the best auto insurance policy, at the best possible price.
- What type of coverage do you need?
To find the right insurance policy for your vehicle, start by figuring out the type of coverage you need. Requirements may vary from place to place, so it is necessary to find out the coverage required where you live. Once you know the requirements, you can better decide what you need. There are various types of coverages available, some of which are mandatory while others are optional.
Some of them are:
- Liability coverage:This covers bodily injury and the damage to the property of others
- Personal injury protection:This coversa limited amount of medical and hospital costs, income continuation, and loss of services
- Medical payments: This covers medical and funeral expenses
- Collision coverage: This covers the damage caused to your car by a collision
- Comprehensive coverage:This covers car damage due to reasons other than collision. For instance, damage due to fire or flood.
- GAP insurance:This is used in case your car is stolen or involved in an accident where it is totaled. The GAP coverage will pay the difference between the current market value of the vehicle and the amount you still owe to the lender. Totaled cars incur huge losses and often attract scrap car buyers.
The type of coverage also depends on factors like your driving record and claim history, vehicle type, your age, location,and credit score. Analyze your situation and decide the kind of coverage you need from an insurance policy.
- Asses the insurance companies:
Cost is not the only factor for choosing your insurer as sometimes it may come at the priceof good service. When deciding your auto insurance policy, look for companies with a local presence. In such a case you will have an actual person to contact when things go south.Local agencies also understand the coverage needs specific to a place or a community. So, they can help you make smarter coverage choices.
Moreover, it is easy to check on the reputation of local agents and agencies. They have a local history to build on, so you can easily get feedback from an acquaintance in the locality. You can also take help fromorganizations like National Association of Insurance Commissioners.They help you to get information about the top insurance service providers, their track record for fairness, and financial stability.
- Make the call:
Figure out the required coverageand makea list of multiple car insurance providers in the region. You are ready to start your search for the one who can offer you the best deal. It is significantthat youhave importantdocuments and paperwork like license number and vehicle registrationat hand.You can provide these to the companies and get quotes. Some companies might not offer you a quote instantly,and you might have to wait till they contact you.
- Shop around:
You might fool yourself simply by accepting a single estimate that apparently offers agreat premium and other benefits. You might be thinking that there is no better option in the market. Thisis a mistakethat needs tobe avoided. As the insurance space is highly competitive, you should at least consider getting quotes fromthree reputablecompanies. Each insurance company has unique financial goals and costs. Finding price differences between companies for the same coverage is very common. Many companies try to offer packages that would make them stand out in the market. So,shop around and take the deal that covers your needs.
- Take advantage of discounts:
Taking advantage of the discounts that you may be entitled to can save you a good chunk of money.Discounts are available for drivers with lower risks (for instance, people with a long safe driving record). Anti-theft and safety gadgets can also reduce your risks and lower yourinsurance costs. Consider all these options so that you can get the right deal for your hard-earned money.
Finding the right insurance policy for your vehicle could feel like aiming at a moving target. Keeping the above five tips in mind will certainly help you find a policy that best suits your needs.
About Michelle Joe: Michelle Joe is a blogger by choice. She loves to discover the world around her.She likes to share her discoveries, experiences, and express herself through her blogs. You can find heron twitter: @michellejoe524