How to Shop for the Best Car Insurance
A multi-country survey that was recently taken showed that over 70% of drivers in the USA paid more for their auto insurance coverage than was necessary. This adds up to billions of dollars per year. It goes to show that many consumers are just not educated enough to make proper buying decisions when it comes to car insurance. This same survey also showed that consumers in Brazil, the United Kingdom, and even China all paid, on average, ten percent over for their vehicle coverage.
Many people buy too much protection or even duplicate coverage that is already covered. Others are oversold by commission-based agents and brokers, who are looking out for their own self-interest, not that of the client. Many brokers already know that most customers are ignorant of the “ins and outs” of how to shop for the best car insurance and they take advantage of that. According to the survey, most people admitted that they don’t know too much about insurance limits, conditions and other items in a basic policy.
Consumers Need to Learn How to Buy the Right Type of Coverage
Most people want to get the cheapest car insurance possible, but don’t exactly know how. They end up getting covered with too much protection for the automobile they have and wasting money. If you drive a car, you are going to need to cover it. This means auto ins is an essential item that you cannot ignore. This is why it’s so important to educate yourself on the subject, so you can not only get the correct policy but save as much as you can. Here are some basic points that will help you buy the best policy possible and lower your premiums.
Decide on the Coverage You Need
Before you buy auto insurance, you first need to figure out what type of policy you need and the corresponding limits. Above and beyond that, you need to find a company that provides 24/7 around the clock customer service and fast claim settlements. There are three basic types of policies: liability only, collision and comprehensive. If your car is more than six years old and you don’t drive it much, you can often get away with a “bare bones” liability policy. According to a leading price comparison site https://goodtogoinsurance.org a liability, only plan starts at just $29 per month. If you have a newer vehicle, then you are going to need the added protection that a comprehensive policy gives. Collision and comprehensive policies start at about $80 a month for good drivers over 25 years of age.
Research the Insurer Completely
There are dozens of insurance companies throughout the United States that want your business. The problem is some are not that reliable. This means that you should not solely focus on price when you shop for auto insurance. Some insurers might charge a bit more, but have a solid financial backing with impeccable claim payouts and customer service. If you ever get into an accident, speedy claim service is a must from your carrier. You can go online at sites like A.M. Best to find out about all the licensed providers in the U.S. and research each aspect of their business. If they have grades below a B, then it’s smart not to do business with them.
Consider Raising the Deductible
The deductible is simply the amount you are required to pay prior to the insurance company paying. For example, if your accident has damages of $5,000 and your deductible is $500, then you would first pay the $500 and the insurer would pay the remaining $4,500. Raising the deductible to $1,000 or more can greatly lower your premiums. This is one of the easiest ways to save money on car insurance. If you decide on a large deductible, make sure you set aside this amount, in the event you get into an accident and file a claim.
Choose the Right Add-ons
To some people add-ons might seem wasteful and unnecessary, but they are important to consider. Some common ones are gap insurance and uninsured motorist protection. They can really save you a lot of money in certain situations. They only cost a few dollars a month more and can fit into most people’s budget. You should carefully consider add-ons and get all the protection that you can afford.
Take Advantage of Discounts
Auto insurance discounts can save you a lot of money. Most carriers have several discounts that you can use. Some of the most common ones are good driver, good student, military or veteran, senior citizen and multi-vehicle. Use as many as you can to save more. Ask your agent or broker about all the available discounts before you buy a policy.
Shop Online for the Lowest Rates
The internet is the best place to find cheap car insurance. You can compare dozens of rates in only a few minutes by using online comparison quoting sites. The average policy online is often hundreds cheaper than a competing agent or broker’s prices. You can also easily manage your policy online, which saves time and is a big convenience.
I hope many of these tips help you shop for better car insurance at lower rates. Your goal should be to get the best policy you can for the best price.Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!