4 tips for finding the right auto insurance policy
Finding the right auto insurance policy isn’t as easy as picking up the phone, calling your bank, and answering a few questions. It can be, but that doesn’t mean you are getting the best premium rates or the best coverage for your situation. If you’re in the market for new car insurance, or your current policy is up for renewal, it’s best to shop around to find the right auto insurance policy for your (and your family’s) needs.
Ask yourself these four questions to find it right auto insurance policy:
1. Does it fit within your budget?
Insurance is a product that every driver needs. Whether you’re a new driver or a seasoned veteran, all drivers (and cars) on the road need auto insurance. If you live in a multi-driver home the costs can quickly add up.
The cost of car insurance can vary among providers for the exact same coverage, so shop around and compare quotes to ensure you’re getting the best rate for the coverage you need.
2. Are you getting the coverage you need?
If your auto insurance doesn’t fit in your budget, the easiest way to lower the cost of premiums is to take less coverage or increase your deductible. But is that really what’s best? The answer is no – especially if you have an accident or theft with your car.
The coverage may be affordable, but it doesn’t include everything you need and therefore you will feel the financial strain if you need to file a claim. The best way to get the coverage you need at a price you can afford is to shop around to find the right auto insurance policy.
3. Did you compare auto insurance rates?
The thought of spending an evening at home contacting several different insurance providers and answering the same questions about your driving record, personal information, and car details may seem daunting. It’s worth it to get the best rates, but it’s not necessary because those days are over.
Comparing auto insurance rates can be as easy as clicking a mouse button because you can compare prices and get car insurance quotes online. Use this simple auto insurance comparison tool to find quotes from several different providers by the time you’re finished reading these tips.
4. Is your deductible affordable?
If you truly can’t find auto insurance that fits into your budget, increasing the deductible is one way to lower the costs. However, it comes with a price – an out of pocket price. If you need to file an insurance claim, the deductible amount is the out-of-pocket cost that you need to pay before the insurance company refunds any money. As an example, if the total damage to your car is $4,000 and your deductible is $1,000 the insurance company will only refund up to $3,000. The rest is an out of pocket expense.
If you choose a higher deductible to lower the cost of your annual premiums, make sure you plan for it. Before increasing your auto insurance deductible set the amount of the deductible aside in an emergency savings fund. That way if you do file an insurance claim you will have the money on hand and you won’t need to use credit cards or get into debt because of an accident or theft to your car.