Buying Auto Insurance in 10 Easy Steps

Factors to consider to buy the right auto insurance for your needs

Spread the love

10 Steps to Buy Your Car Insurance

Step 1: Beginning
The most important thing to consider when buying auto insurance is the coverage. You want to make sure you have enough coverage in case of an accident. Take time to compare the prices of policies. Different insurance agencies will offer different prices and you want to make sure you are getting the best coverage at the best cost.
Step 2: Determining the Amount of Coverage
You need to determine just how much coverage you will need. There are state requirements, so be sure to find out what kind of coverage is legally required in your state. After the required coverage is taken care of, you can add additional coverage to the policy. For example, you can add substitute transportation, glass replacement, liability and increased amounts of the required coverage. This is a wise choice if you have a lot of assets that could be brought into a law suit if you are found at fault in an accident. Take your past driving record into consideration as well. If you are prone to fender benders, it may be a good idea to increase your coverage.


Step 3: Review Your Current Policy and Driving Record
Always be aware of what your current policy allows for coverage and what your driving record is. If you are unsure of what your driving record looks like, contact the DMV. They will provide you with a copy of your records. A poor record will be one of the reasons for a higher premium. Make sure to know what you are currently paying for your coverage. Compare these numbers with other agencies to find the lowest premium with the best coverage.
Step 4: Get Quotes!
Once you know what coverage you need and you are aware of your driving record, spend time getting quotes from different insurance agencies. Requesting a quote does not cost anything but time. This is the best way to see what is out there and it will be a great help in finding the best deal. You can get quotes from companies online as well as on the phone.
Step 5: Compare the Quotes and Keep Records
Once you have gathered a few quotes, carefully review them and compare the prices. Make sure to keep track of each insurance company and what their quote is. In addition to the cost of the premium, look for annual fees and any possible discounts that may be offered. Also look into the payment policies for each company.
Step 6: Make Some Calls
If you have requested quotes online, do not stop there. Make sure to call some local insurance companies. Many people believe they will find the lowest premium cost through an online company, but this is not always the case. Calling and requesting a quote may end up saving you hundreds of dollars on your policy. Always confirm the price when receiving a quote over the phone.
Step 7: Search for the Discounts
Many insurance companies offer discounts on a policy. These could include low annual mileage, multiple car coverage, AAA memberships, anti-theft systems, professional affiliations and safe driver credits. Even if you are pleased with the initial quote, always ask about further discounts. These can add up and save you a lot of money.
Step 8: The Right Insurance Company
When you are comparing the quotes, don’t automatically elect the company that offers the lowest price. Take some more time looking into the company itself. Find out how claims are processed, how long it takes to file a claim and what their customer satisfaction rate is. The best price does not always mean the best service. You want to make sure you will be dealing with a reputable and reliable company.
Step 9: Review the Final Policy
Now that you have done all the leg work and have found the right policy, you may be excited. Put that excitement aside for a moment and take time to read through the entire policy. Check the coverage and costs to make sure they match the quote. Make sure that discounts are applied and look for any clauses that are added by the company. There are 2 clauses to look for; retaining your right to sue and aftermarket parts requirements. If these are present in the policy, you should reconsider and find another company to deal with.
Step 10: Cancel Your Current Policy
When you have found the right company and the right coverage, make sure you cancel your current insurance policy. If you are required by the state to carry proof of insurance, make sure to always have it accessible.
Category: Insurance

Please log in to your Facebook account to comment.