Top Insider Secrets for Buying Car Insurance
 |
| car insurance secret |
These tips will prepare you to shop for car insurance armed with the knowledge insurance insiders have, help you to understand what you should be looking for in a policy, and make sure you don’t find yourself being sold on a policy that doesn’t meet your needs or your budget.
5 Top Insider Secrets for Buying Car InsuranceKnow your Coverage Needs
Most people who call an insurance company or search for quotes online don’t really know what the different coverage options on their auto policy mean, what level of coverage they require in each area, or which optional coverage choices are best for them. They go in blind and take the insurance company’s word for it that the coverage they are being offered will protect them. If you are not aware of what you are paying for, it’s difficult to know whether the price you are paying is fair. Thus the first step towards being able to quickly and easily compare auto insurance quotes is to know what your coverage needs are.Many people believe that carrying the legal minimum is enough, but the fact is that in most cases it is not even remotely enough to cover the amount you could be responsible for in a serious accident. Many insurance companies offer quotes at this level of coverage because the rates are low. It creates a false sense of getting a “great deal” in the client. In reality, the deal will not be so good when you are paying out of pocket for an accident. Make sure you know how much liability coverage you are carrying! Higher limits are always a good idea, and whenever you see a rate that sounds like a great deal – check the liability limits. They are the easiest way to lower a rate – and the easiest way to leave you without the coverage you need.
Other coverage on your policy is optional as far as the law is concerned, but that doesn’t mean you don’t need it. The two most common optional coverage choices are comprehensive and collision. Adding these to a liability policy creates what is known as “full coverage”. While liability coverage pays for another person’s loss in the case of an accident, comprehensive and collision cover your losses.
If you are at fault in an accident and do not have collision coverage you will receive no payments for the damage to your car. If your car is stolen or damaged in any way other than in an accident, you will have no coverage if you do not have comprehensive. Consider whether you can afford to take that risk before you decide to leave off these optional coverages.
1. Your Driving Record Doesn’t Have to Mean High Rates
6 Top Insider Secrets for Buying Car InsuranceYou had an accident or got a ticket, and on renewal, you found that your rate has increased significantly. Most people believe that when this happens they are better off staying with the insurance company they are already with because a new insurance company will charge even higher rates to a new customer with a mark on their record. The truth is that there are companies who will give you a better rate – even as a new customer with a ticket or accident. Every insurance company rates a policy differently so they can give more weight to some factors and less weight to others. Some companies even specialize in offering better rates to people with tickets and accidents.
And even if you have a clean driving record now, you can plan ahead for the possibility of an accident by choosing the right insurance company in the first place. Many insurance companies now offer a “freebie” first accident, meaning they won’t increase your rates the first time you are at fault in an accident. Make this a part of your search when seeking auto quotes so you can rest easy that you won’t be punished for a one-time mistake.
2. How you Pay Changes How Much You Pay
Most people pay their auto insurance on a monthly payment plan. In most cases, this is because the full premium for the policy term, be it six months or more commonly a full year, is too much to afford all at once. But here’s something the insurance company might not tell you unless you ask: if you pay the entire premium up front, you will likely pay less overall. By saving up to pay your insurance all at once, you can actually pay less than you would by paying monthly.
This is partly because most companies charge a fee for the service of monthly billing, but that’s not all. Many insurance companies offer a discount if you pay in full. So it’s not just the fees you will be avoiding, but you will actually pay a lower premium in total. Since most people choose to pay monthly, your insurance company may not tell you about an available pay-in-full discount. So be sure to ask – it could save you a lot of money!
3. The Middle Man is Optional
91 Top Insider Secrets for Buying Car InsuranceEarlier generations bought insurance through an agent because it was the only option. Many people still do choose to have an insurance agent to help them with the process of choosing their coverage, but today it has become truly optional. In fact, using an internet tool to search for auto insurance quotes can really streamline the process. While you will often hear that the professional advice of an agent can’t be replaced, there is another side to that coin. Agents can sometimes make you feel pressured to buy coverage you don’t want or need. When you shop online you can take your time, look at the numbers, and only talk to someone when you are ready if at all.
Agents are only available during business hours, but the internet allows you to search for and compare auto quotes whenever it is convenient for you. It has opened up a whole new way to shop for car insurance. But when you choose to cut out the agent, make sure to follow the first tip here: learn about your coverage and be sure you know what you need! This will truly let you take control of the insurance shopping process.
4. You are the Customer
Sounds obvious, but many people forget this when they are buying car insurance. Because you are required by law to carry insurance, it can feel like you have no rights. But insurance is a business and you are the customer. You can question things and you have the right to shop around as much as you want. You have choices, so don’t let any insurance company pressure you into buying anything you don’t want or paying more than you really need to.
The internet has given insurance customers more power than ever before; today you can arm yourself with knowledge and with the various car insurance estimator you can compare rates in minutes rather than hours or days. You have the power to make changes if you are not happy with your insurance company or rate. Remember that insurance companies want your money – they should earn it.
5. Shop for Insurance Like a Pro
Shopping for car insurance isn’t as mysterious and complicated as it seems. Just go in knowing what you need, be aware of the ways in which companies can falsely lower rates, and compare quotes so that you know what you are paying is fair. You have many tools at your disposal to help you shop for car insurance without stress and make sure you get a fair price.
The internet lets anyone shop for car insurance like a pro – it lets you be your own broker. And even if you decide to go with an agent, in the end, you will do so knowing you have the right coverage and you are paying a fair price for it.
