Drivers need car insurance. Most states require drivers to carry minimum amounts of car insurance at all times. Insurance protects drivers in the event of an accident and keeps people safe in a world where there is a car accident every 14 seconds and 90 people die from injuries sustained in accidents.
However, do not choose the first car insurance provider out there because they’re not all created the same. Take the time to complete the following seven steps before buying insurance and when the time comes to purchase a policy, you can do it with confidence and accuracy.
1- Shop Around
The average driver spends $1,548 per year on car insurance costs. This equals an average payment of $129 per month. Some drivers pay considerably more for auto insurance, considering factors such as the state of residence, driving record, vehicle, and driving history impact rates. Shop around for the best rates before choosing an auto insurance provider.
Many online tools can be used to help drivers compare costs with several auto insurance companies. Most drivers request car insurance quotes to help them compare costs and find the best rates. Auto insurance rates are expensive enough. Shop around before you insure so you don’t overpay.
2- Know Your Needs
Collision and comprehensive auto insurance are part of what many drivers refer to as ‘full-coverage insurance.’ This coverage pays for the policyholder’s damages after an auto accident, something standard, state-required coverage does not. While many drivers benefit from a full-coverage policy, there are exceptions.
Additionally, drivers may add a higher coverage amount than required by the state. Determine the appropriate amount of coverage for your driving needs ahead of time so you know whether or not a state-required policy is enough or if you should add more coverage and you can save a ton of cash in the process.
3- Discounts Save Money
Car insurance companies offer a number of discounts for new customers. Discounts and their values vary from one provider to another, although typically offer as much as 20% off the costs of your policy. Multi-policy, multi-driver, and good driver discounts are among the many discounts offered by an auto insurance company.
Take advantage of every discount you qualify for to maximize your auto insurance policy savings. Most agents inform new customers about the discounts available, however, should this no take place, do not hesitate to ask.
4- Ask Questions
Ask lots of questions ahead of choosing an auto insurance provider. It is vital that you find a company that works for its customer’s best interests and needs rather than a paycheck each month. Some of the questions important to ask the insurance company include:
– What is your cancellation policy?
– How does your claims process work?
– What is and is not covered?
5- Check Your Credit
Many auto insurance companies check the credit of a driver before quoting them a price for their coverage. The poorer your credit, the higher your auto insurance rates. That gives drivers more incentive than ever to improve their scores. A free copy of your federal consumer report is available from each of the three major reporting bureaus each year.
Check the reports, report inaccurate information, and work on reducing the amount of debt that shows on the report to get the best auto insurance rates.
6- Research Auto Insurance Companies
Choose a policy from an auto insurance company that’s been around for a while. Experience and longevity are signs that the auto insurance company makes customers happy. Learn & research as much as possible about the insurance company via online sources such as social media and their website. Customer reviews and satisfaction survey information from providers make a big difference in the happiness you find with an auto insurance company.
7- Do a Yearly Review
The best insurance provider last year may not hold the title again this year. Drivers oftentimes purchase auto insurance and never look back, automatically assuming they’re getting the best rates and coverage. This isn’t true in every situation, however, and an annual evaluation ensures that you do not maintain coverage with the wrong provider. Take the time to request quotes and compare costs once per year. This yearly review may very well save money and headaches when its time to insure your vehicle.
Choosing the best auto insurance provider for your coverage needs may seem stressful and even overwhelming, but when you complete the seven steps above, it gets much easier to find the best policy and auto insurance provider. Do not choose the wrong auto insurance provider when it is so easy to narrow down the options to find a provider who exceeds expectations.
