Car insurance can be confusing, to say the least. Between finding an insurance company that offers the coverage you want at a price you can afford and understanding how to use your policy properly, there are plenty of points in the process where things could go wrong. As long as you keep in mind these seven tips for first-time car insurance buyers, though, you’ll have no trouble getting started or finding the perfect policy to fit your lifestyle and needs!
1: Know what you need
When buying car insurance, it’s important to know what you need. The type of car you drive and how much it costs to replace, or repair can be a major factor in what type of coverage you need. There are four different levels of coverages: liability, comprehensive, collision and uninsured motorist. Liability is the amount your insurance company will pay if you’re found liable for causing an accident that results in injury or property damage. Comprehensive is for damages not caused by accidents, like theft or vandalism. Collision helps pay for damages caused by accidents and uninsured motorist helps protect your family if one of them gets into an accident with someone who doesn’t have auto insurance.
2: Do your research
Find Out How Much You Need to Spend on Your Coverage. When you go to purchase car insurance, it’s important that you have a clear idea of how much coverage you’ll need for your vehicle. That way, you can make sure that the quotes you get are in line with your requirements. If they’re not, then it might be worth shopping around.
Know What Kind of Coverage You Need. Once again, before you go out and start looking for a policy, it’s important that you know what kind of coverage will work best for your needs – especially if there is an age or mileage limit on the insurance policy in question. Otherwise, this could end up costing you more money than necessary every month.
Shop Around Online to Find the Best Rates Possible.
3: Get quotes from multiple companies
It’s important to compare quotes from a few different car insurance companies before you buy. The cost for the same coverage can vary depending on who you work with. If you’re looking for the best value, check out companies that are within your budget and offer the most features for your money. It’s also smart to find out if any discounts are available. Ask questions so that you know what to expect when it comes time to file a claim.
1) Who do I call if there is an accident? 2) What types of coverages am I getting? 3) What type of deductible do I have? 4) Am I covered in case of theft or vandalism? 5) How much is my premium going up each year and why?
4: Consider all your options
Before you head to the insurance office, consider what kind of coverage you need, how much it will cost and whether or not you’re eligible for discounts. Find out about any available discounts for:
- being a good driver
- being single
- taking a defensive driving course
- living in a safe neighborhood (a.k.a. low crime)
- installing an anti-theft device in your car
- have auto theft coverage on your house and/or renters insurance
5: Understand the terminology
Car insurance is one of the most important aspects of owning a car. But it can also be confusing. If you’re not sure what all the words on your policy mean, here’s a quick list:
- Bodily injury – the cost to repair or replace someone else’s property that you damaged in an accident.
- Property Damage – the cost to repair or replace your own property that was damaged in an accident.
- Comprehensive coverage – protection against losses other than those that are collision related, such as theft and vandalism.
- Collision Coverage – protection against losses when you collide with another vehicle or object.
- Deductible – amount that must be paid out-of-pocket before insurance starts paying for covered losses.
- . Liability Coverage – protection against lawsuits alleging that you were negligent and caused injury or damage to others.
- Uninsured motorist coverage – protects you if an uninsured driver causes injuries or damages your vehicle.
This post has been helpful so far, but we still need more information about how these terms affect us as drivers.
6: Don’t be afraid to ask questions
Asking questions is one of the most important parts of the car insurance buying process. You need to know what coverage you need, which company to go with and how much it will cost. A good way to start is by asking yourself these questions:
- Which types of vehicles will I be driving?
- What are my needs in terms of coverage?
- How much do I want to spend on my premium?
- Where can I find my best rates?
7) Review your policy regularly
Reviewing your policy regularly is important to make sure you’re on top of any changes or updates.
Review the policy itself for any changes in the coverage, limits and deductibles. Your rates may change over time, so it’s a good idea to check back in a few months to see if there have been any changes.
If you have added any new vehicles or drivers to your household, be sure to update your information with the insurance company as soon as possible.
