If you are a new driver or have not had to buy new car insurance before, figuring out how to shop for car insurance can seem like a daunting task. Comparing policies is not simply a matter of choosing the lowest cost quote. It is important to understand what is included in each policy you consider, and choose the one that best meets your long-term needs. When you shop for auto insurance policies, it is important to understand that there are tons of different types for you to choose from as well as different ways to purchase a policy.
Figuring out How to Shop for Car Insurance
Nearly every state has minimum coverage amount required by law. This basic liability insurance only protects you from paying for damages to another person’s property in the event of an accident. Having the minimum coverage will keep you legal on the road, but it does not include many other important elements that you should consider.
Comprehensive car insurance protects you from flood, fire, theft or vandalism of your vehicle, while collision insurance protects you from paying for repairs and damages done to your own vehicle in the event you are found at fault in an accident. If you financed your vehicle, your loan provider will require that a specific limit of comprehensive and collision insurance be maintained for the life of your loan. The contract you signed at the time of purchase will provide details on the minimum limits your insurance must provide.
Uninsured and under-insured motorist insurance protects you when a vehicle that does not have proper liability insurance coverage strikes your car. Without this added option you would be left holding the bill for any repairs or medical expenses you incur. Many people go without this coverage to keep their premium low. The number of uninsured drivers on the road rises yearly despite the increasing penalties imposed, making it more important than ever to acquire protection from the expenses that can result in an accident with an improperly insured vehicle.
Understand How Various Types of Car Insurance Affect the Cost
While each of these types of insurances will add to the cost of your premium they also provide added peace of mind that you will not be left without transportation if you are involved in an accident. The best drivers can fall victim to bad road conditions or other negligent drivers, so even if you are confident in your own driving ability you should stop to consider the cost versus the benefit they provide.
There are many ways to manage the insurance you need without the high price. The deductible set for your insurance claims has a major impact on your premium price. As a general rule, the higher your deductible the lower your policy will cost. Be wary of setting a deductible so high that you could not reasonably meet if you had to file a claim. If you have other types of insurance check with your current insurance company first, as often they will offer a multiple-policy discount.
Shopping for Car Insurance Online
When you shop for car insurance online, always look at the policy details before you commit to buy. Be certain that the limits will meet your needs, and that the minimum requirements of your state and your loan holder are achieved. Increase any deductibles that you can afford to raise, and pay attention to any exclusions included within the policy’s coverage. Taking a minute to thoroughly look at the offered policy will have you from an unwelcome surprise in the unlikely event you need to make a car insurance claim.