How to Explain What You Need for Automobile Insurance Information

Carrying insurance on your vehicle is critical, no matter what kind of automobile you drive. In order to get the best rate on your car insurance, properly explain what you need to the company or agent. Insurers provide a number of different plans to accommodate a variety of drivers, so explaining exactly what you need will help you find the best policy for you and your car.

Instructions

1. Determine the value of your car before you start shopping for car insurance. Knowing how much your car is worth will help you decide whether or not collision and comprehensive coverage is a good idea. If your car has a low value, the costs associated with this full coverage option might not be worthwhile. That is because insurance will pay only the current value of your car if it is totaled in an accident, not the replacement value. The Kelly Blue Book and Edmunds websites are good sources for finding the current market value of your car (see the Resources section). According to Schaedler Insurance, you should consider dropping full coverage (comprehensive and collision) when the cost exceeds 10 percent of the value of your vehicle.

2. Explain to the agent the level of deductible that you want. The deductible is the amount that you are required to pay before your insurance covers a loss. According to Edmunds.com, a higher deductible will lower your insurance premium.

3. Check the discounts to which you may be entitled. Car insurers provide discounts for a number of reasons, including anti-theft devices, garaged vehicles and airbags. Explain these items to the car insurance agent and make sure that you get the right discounts. According to the Federal Citizen Information Center, you also may be entitled to a discount if you buy your car and homeowner's insurance from the same company.

4. Ask the agent about the different payment options that you have available, such as paying the bill in full, in three equal installments or making a payment once per quarter. Those who have more than one policy sometimes are able to choose a single bill instead of separate ones for each.

References

• Edmunds: Top 10 Ways to Lower Your Car Insurance
• Schaedler Insurance: When Should I Consider Removing Comprehensive and Collision Coverage From My California Auto Insurance?
• Federal Citizen Information Center: Ways To Lower Your Auto Insurance Costs
• Erie Insurance: Payment Options to Meet Your Needs

Resources

• Kelly Blue Book
• Edmunds