Buying car insurance is something most of us don’t like to do but something that has to be done for one simple reason – it’s illegal for your car not to be insured. Simple. So how do you go about buying a car insurance? How can you make sure that you have the right insurance for your car and what things do you have to look out for before getting a car insurance? Here are 4 things you need to make sure you do before signing up and paying for that insurance.
1.Know what amount of coverage you need
The cost of your insurance goes up depending on the amount of coverage you need. Do you need to cover yourself? Your teenage driver? Your spouse? Do you have to get total damage coverage? What sort of deductible do you wan to pay when your car is damaged and you have to pay upfront before the insurance even touches it? What other liabilities do you have?
You need to make sure that you get the right insurance that covers every problem you can ever think about. No need having an insurance that barely covers anything when you have a new learner in the house. You might want to consider a full coverage and low deductible to make sure if your new driver gets into an accident, your insurance can take care of most of your needs. And in this case, you might be looking for a comprehensive coverage rather than insurance coverages that leave you out of pocket with thousands of dollars when it comes to paying out.
2.Know the value of your car
Car are insured based on their value. Your insurance company assumes that in the worst case scenario, they might need to pay for a new car for you so when they charge you for your coverage, they do so based on the anticipated money they will need to pay out when it’s time to buy you a new car for any reason, or replace your old car in case of an accident where your car is totaled. We know that the insurance companies hardly ever give us the value of the car but at least we should make sure that our policy cover the value of that car when we ever need a replacement.
Ask the insurance underwriter to give you a baseline figure of how much they will pay out for your car today if it were to be totaled (give or take the adjustor finding other issues with the car). You don’t want to skimp on a few dollars per month for your insurance payment to find out when you really need a payout that your car was very undervalued and you can’t buy anything with the insurance money paid to you. Also knowing the initial value of your car and making sure that you are covered appropriately helps you keep track of the car value down the line.
3.Your Driving Needs
Where you drive, how often you drive and when you drive makes a huge difference to the type of coverage you can get for your car. If you’re barely driving to work and only spend a few minutes on the road because you work from home, what you pay for car insurance should be significantly less than when you drive cross-country or drive out of town to work. Even your leisure driving should be taken into consideration.
If you’re constantly doing road trips then you should make sure your insurance covers you enough so you’re comfortable making those long trips and back, but if you’re a homebody that barely goes anywhere then your insurance needs are way less than someone who is constantly on the road.
4.Reputation of the Insurance Company
It seems redundant but a lot of people have gotten burned by not doing their homework before buying a car insurance. Some people have gotten no-name insurances and when it was time to make sure they got paid or where take care of in case of a car accident, the insurance company was unavailable or just had stories to tell. No one likes being in a bind and not getting the help they need, especially from an insurance company.
So, make sure you ask around or at least read reliable reviews before you sign up with an insurance agent. Also remember that insurances use local agents to take care of their clients so even if you’re with All State Insurance, or Geico, or State Farm or any other insurance company, you are really being taken care of in a local branch mostly owned by independent agents simply affiliated with the company. So, do your homework to find the right insurance company to use, but also research to make sure the local insurance agent is someone you feel comfortable with.