Even though many vehicle owners use price as the main factor when selecting an insurance policy, price alone is not an effective tool when comparing auto insurance rates. Below are a few points you should consider when looking for a new insurance policy.
Identify Your Needs and Risk Tolerance
First identify the type of coverage you want. There are different types of insurance covers ranging from comprehensive, liability and collision insurance. The type of insurance you select will be determined by a number of factors including state requirements, type of vehicle, vehicle use and personal preference. If you are not certain about the types of coverage you need in your state, a qualified insurance agent can help you select the correct coverage levels.
Get Quotes from Multiple Insurance Companies
Once you identify the type of insurance coverage you want for your vehicle, select a few professional and reliable vehicle insurance companies and get quotes from them for you to compare. Independent agents are great for this as they can quickly give you quotes from multiple insurance companies while keeping your needs in mind.
Compare the Limit of Liability Coverage
In the event you are involved in an accident in which you are the at fault party, liability coverage is used to pay for vehicle repair, medical bills and compensation for the other driver. In many states you can elect to carry minimum coverage but it may not protect you in all situations. For this reason, we highly advise speaking with a qualified agent to make sure your coverage is up to par.
Compare the Deductibles
Insurance companies usually pay for damages to your vehicle including replacement in the event it is totaled. Deductibles are the amount you have to pay from your pocket when you a make a claim before the insurance claim are processed. When comparing auto insurance rates, it is important to compare the deductibles in each policy. Generally a lower deductible results in a higher premium and a higher deductible in a lower premium, take time to consider the pros and cons of each before selecting a policy.
Check for Savings Opportunities
Many insurance companies offer discounts for multi-car coverage, safety features, driving record, and an assortment of other qualifying criteria. Be sure to ask your agent if you could qualify for additional savings by moving all of your policies to them. Also be sure to ask about other types of discounts that may be available.
Remember, when you are choosing an insurance policy, you should look at the coverage limits, deductibles, and the overall quality of the company you are going to be covered by.