How to Choose the Best Car Insurance
Shopping for car insurance is never fun but it's necessary. By law, you must carry a minimum of liability insurance on any vehicle you operate on the road, with a few exceptions. In addition, if you use a finance company when you purchase a car and make monthly payments, the lender will require you to purchase additional comprehensive coverage to protect their financial interest in the car. When choosing car insurance, consider more than just the dollar amount of the premium.
Other People Are Reading
Instructions
-
-
1
Ask potential insurance providers to tell you the minimum requirements for automobile insurance in your state. On an old car that has no lien against the title, you may opt for the minimum coverage. Research individual car insurance companies in your state and find out how other consumers rank them. (See Resources)
-
2
Consider purchasing car insurance locally. The low premiums of insurance coverage purchased online or through the mail may seem like a good deal until you have a claim. If your insurer is local, you can easily stop by the office and discuss your case. If you purchase insurance from an out-of-state insurer, you may find it’s difficult to receive reimbursement for damages.
-
-
3
Define your insurance needs before you shop for rates. Even if there is no lien on your car, you may still choose to purchase comprehensive insurance if you feel the car is of sufficient financial value that you need protection against damages. To do this, write down the value of your car and the difference in rates between a liability-only policy and a comprehensive policy. If the difference is small, consider purchasing the comprehensive policy to protect your investment.
-
4
Compare not only the rates of different policies but also the amount of coverage they offer and the deductible amount you are responsible for in case of an accident. You can lower your premiums by taking a higher deductible but you will incur greater out-of-pocket expenses if you file a claim. Get quick online quotes when you're shopping for car insurance. (See Resources)
-
5
Look carefully at each policy for exclusions. Often, an insurance provider will not point out that they may not cover specific damages without an additional charge. One of the most common exclusions is termed “glass coverage” and you may have to pay extra for it. Before you do so, however, find out the cost of replacing the glass yourself.
-
6
Encourage all driving-age children in your household to maintain a high grade point average and to take a driver’s education course. Most insurers offer lower rates for students with good grades and those who successfully pass a driver education course.
-
7
Give out as little information as possible to potential insurers. If you are shopping for a new insurer and the agent asks you the amount of your current premium, don’t answer. A common tactic of insurance companies is to find out your current premium and offer you one slightly lower. This question should send up a red flag. Any insurance company can give you a quote based upon your driving record and the make and model of your car.
-
1
Tips & Warnings
Ask friends about their insurance provider and how satisfied they are with their coverage.
Do not attempt to drive without insurance. In many states, the fine is hefty if a police officer stops you.
Resources
- Photo Credit Photo, curtesy of Stock.xchng
