6 Tips to Follow When Shopping for Car Coverage
Owning a car comes with great financial responsibility, and this obligation means having car insurance. Car insurance is mandatory by law, whether you’re buying a new one or you own an old one either way having a policy is very important.
Although sometimes finding a car insurance policy that’s suitable might be a hard task, you need not worry – as you read further you’ll get an insight on what and what not to do when finding the right car insurance policy that’s suitable for you.
Some Basic Tips To Follow When Buying Car Coverage
You should know that every state has its car insurance policies. One of these requirements includes being able to pay for damages incurred on others with your car. Also, It’s good you compare different car insurance quotes, to choose the one that suits your personal needs and meets your state requirements, why? You would probably save yourself thousands of dollars by doing this. More so buying car insurance can cover damages you get as a result of car accidents, flood, fire, collision with animals, etc.
- What’s The Price Of A Car Insurance?
According to data from the National Association of Insurance Commissioners, the average cost of insuring your car can cost $1,134.
- How Are The Prices Of Car Insurance Determined?
Although each insurance company has its way of calculating premium prices, they all tend to use the same factors – these factors include the size of the car, model, your driving record and how you use the car. Other basic factors include:
- Where you live: if you live in an urban area where crime is predominant then, you’re considered high risk, whereas if you live in a rural area where there are few cars and crime is relatively very low, you’re considered low risk.
- Your credit score: in most states, your credit score is calculated to determine the price of your premium. It has been popularly noted by the car insurance industry that people with higher credit scores have fewer accidents, although this fact is disputed.
- Your gender, age and marital status: according to statistics, young inexperienced and male drivers are likely to file an accident claim, whereas married drivers are less likely to file an accident claim.
- How Do I Pay Less For Car Insurance?
If you own an old car, it might not be a wise idea to pay for comprehensive insurance thus saving money. More so you can also raise your deductible – the money you pay before the insurance kicks-in. Increasing your deductible from $200 to $500 can reduce your collision and comprehensive coverage cost by 15% – 30%.
- Which Coverage Is Suitable For Me?
The kind of coverage you’ll need to purchase for your car depends on some factors that include; the type of automobile being covered — if it’s new or old — your assets, etc. Whatever the case is you should choose car insurance that’s suitable for you, here are the different types of car insurance;
- Comprehensive: this coverage gives you protection from damage, theft and collision, although this car insurance is optional.
- Liability: liability insurance consists of two parts, bodily injury liability and property damage liability. Car owners or drivers must purchase the minimum amount of auto liability coverage, which is of course determined by state law.
- Collision: collision coverage is mandatory by state law, if you’re in a situation where you hit a car, or rather let’s say you hit a tree, and your vehicle is damaged or totalled, your coverage covers for all damages or replaces your car if the need – you’ll be paid the value of the car at the time of the incident.
Other types of car insurance include; medical payments, personal injury protection, Uninsured and underinsured motorist.
- Compare Quotes
Each insurance company has its way of calculating car insurance rates, so you could pay less with company A over company B, in more light you must compare quotes. When you compare different insurance quotes, you tend to save yourself a lot of money when paying for your car insurance. After comparing quotes choose a car insurance policy that fits your needs and state requirements.
- Prepare Your Documents
Your car insurance provider will always ask for personal information when you want to buy car insurance, so you should present them with accurate information or records. If you give wrong information to your provider, it could result in you not getting coverage, you could be fined or even worse, legal action can be taken against you. The personal information you could provide when shopping for car coverage include; age, address, driver’s license, driving record and vehicle details.
Conclusively, when comparing insurance rates, you should always compare the quotes of at least three companies, compare quotes with the same level and type of coverage, and finally check that each policy has similar limits and deductibles. We hope that our tips will easily guide you to make the right choice.