Tips on Buying Auto Insurance

These are our researched auto insurance buying tips, visit our main page for new car buying tips and price quotes.

How to choose an insurance company:

When deciding which insurance company to go with, don’t just choose the company with the cheapest rate. Research the reputation of the company and their financial stability. Choose a company that has been in business for awhile and has built a good reputation with minimal or no complaints against them. Ask friends and family members about their experiences with their own insurance companies. Which companies have they been satisfied with? When you call the company, do they answer your questions and provide good customer service? These are important things to consider. There are also many auto insurance companies that provide online services. Once you have chosen an insurance company, you will need to decide how much coverage you want and can afford. Remember that insurance requirements and rates can vary from state to state.

Types of coverage:

• Liability: Covers damage that you cause to another persons property.
• Collision: Covers damage to your vehicle caused by a collision with another vehicle or object.
• Comprehensive: Covers damage to your vehicle from sources other than collisions, such as fire, theft, vandalism, etc. Comprehensive coverage can vary, make sure to find out exactly what will be covered. If the vehicle you are insuring is older and not worth a lot then you should consider skipping this coverage.
• Uninsured or Under-insured Motorist Coverage: Covers you if you are involved in an accident with someone who does not have insurance.
• Personal Injury Protection: Pays for some medical and funeral expenses for the insured and passengers. This coverage is not available in all states.
• Other coverages available: Roadside assistance, glass coverage and car rental coverage for when your vehicle is being repaired.

Discounts:

Make sure to ask for all available discounts, the company will not likely volunteer them all to you.

• Anti-theft: Having any type of anti-theft system including an alarm will usually get a discount.
• Drivers ed: Young drivers usually have a higher insurance rate, some companies will offer a discount to young drivers that have taken a drivers ed course.
• Good record: Having a good driving record also helps.
• Multi-car or home and car: You can get a discount by using the same insurance company for more than one vehicle or by combining home and car insurance.
• Safe vehicle: Driving a vehicle that has good safety ratings and safety features will reduce your rates.
• Deductible: Another way to reduce your rate is by paying a higher deductible.

Insurance scams:

To avoid getting scammed, do your research. Make sure the insurance company is licensed, don’t pay in cash, don’t sign a blank form or a form that you have not read thoroughly.

What to do after an accident:

If an accident happens, inspect both vehicles for damage and take photographs of the damage if you have a camera or camera phone on you. When the police arrive you will need to give an account of the incident and file a report. Gather the other person’s important contact information. Call your insurance company after all of that has been done, if you plan to file a claim. Call the insurance company while you are still at the scene as they may want to send an agent to inspect the damage.