Your Guide to Auto Insurance
With auto insurance, you want to be covered without having to pay too much. To achieve this, you'll have to pay attention when you're buying it. Here are tips on what you need to look out for.
Coverage: Understand your state’s minimum coverage requirements. Then understand your comfort level about how much risk you want to assume. Ideally, your liability insurance should be equal to the value of your assets. Get more coverage if you often find yourself in fender benders or park in a not-very-safe neighborhood.
Review: Understand your current level of coverage and its cost. Note your monthly and annual insurance costs too. Then look for quotes that beat these numbers.
Record: Check your driving record with your state’s DMV. If any tickets are about to disappear, wait until that happens to get new insurance quotes. A clean driving record means low premiums.
Quotes: Now, start shopping with multiple insurance companies and compare their quotes. Check websites too. Ask friends and family for recommendations. Each quote form takes 15 minutes but could end up saving your hundreds of dollars.
Information: Keep a list of all annual and monthly rates for different coverages offered. In case you have queries, check their website, or call them. Check the insurance companies’ payment policies too regarding due date, payment plans, and late payments.
Call: Speak to companies that didn’t offer a quote online. Keep your license and registration handy and ask for quotes over the phone. Ask the agent to email the quotes to you for reference.
Discounts: Insurance companies offer discounts to drivers with good driving records, safer cars, people with certain occupations or professional affiliations, good students, chess club members, etc. There are also pay-as-you-drive plans. Bundling home and auto insurance may even get you discounts.
Assessment: Check the insurer’s track record. Ensure it’s financially sound and is known to be fair. Check customer reviews, official ratings, and state department of insurance records.
Review offers: Read the offer policy details carefully. Ensure that the coverage will provide for original manufacturer parts and not parts of ‘like kind and quality.’
Cancel: Once you get a new policy, cancel the old one. But carry proof with you at all times.
