When looking for car insurance, it can be tempting to sign up with the company that offers the best price. However, there’s more to consider than just the insurance cost.
Whether you’re insuring your first car or renewing the policy, your goal is the same: You want to be adequately covered in the event of an accident, but you don’t want to pay more than necessary.
A little comparison shopping could save you hundreds of dollars a year. Here are some tips to consider when purchasing auto insurance:
Calculate how Much Coverage You Need
Begin searching for the best auto insurance by determining your required coverage. The requirements differ from state to state, so research the coverage requirements in your area. Knowing your local requirements will help you decide what you need. Your decision will be based on your comfort level with taking on some risk.
Consider your driving habits when deciding how much coverage you require. You should have additional coverage if you regularly speed or drive long distances on dangerous roads. Collision coverage pays for damage to your vehicle in the event of an accident or damage.
Comprehensive coverage pays for damage that does not result from a collision, such as fire, theft, or flooding.
Calculate Your Ideal Insurance Costs
Examine your current auto insurance. Write down how much coverage you have and how much you pay for it. Take note of your insurance’s annual and monthly costs. You now have a figure to work with.
Examine Your Driving Record
Keep track of the number of tickets you’ve received. Check with your state’s motor vehicle department to confirm your record’s length. Wait until a ticket you received is about to be erased from your driving record before getting quotes. A bad driving record raises the cost of insurance.
Get Competitive Quotes
Create a list of companies for comparative quotes by gathering information from their websites. If you like a company recommended by friends or family, you can go directly to its website or call its toll-free number for a quote.
Compile Company Information
Take careful notes while researching companies so you can easily compare prices and coverage. Make a list of:
– Annual and monthly rates for various types of coverage.
– The insurance company’s number to get answers to questions you can’t find online.
– The payment policy of the insurance company.
Look for Discounts
When shopping around, make sure to look into all of your discount options. Insurance companies offer discounts for good driving records, safety or security equipment, and certain occupations. Some companies provide lower rates if you sign up for “pay as you drive” plans. Consider using the same insurance company for your home and auto policies, as this will usually get you a better rate.
Evaluate the Businesses
You now have most of the pricing and coverage information required to make an informed decision. You can see which company’s coverage is the least expensive, but remember that price isn’t the only factor to consider when selecting an insurer.
Use the National Association of Insurance Commissioners’ Consumer Information Source to learn about insurance companies. If you need more information about a company, consider contacting an independent insurance agent.
Inquire with friends and family about their insurance providers and whether they are satisfied with them.
