Buying Auto Insurance
As frustrating and inconvenient as buying auto insurance may seem, remember this simple truth:
Determine how much coverage you want and need.
Take into consideration:
- Your Income:
If you get injured and are unable to work, will your insurance help sufficiently replace your income?
- Your Expenses:
Will your insurance cover expenses that are directly affected by your injuries? For how long? Take a look at your budget to determine how much insurance you’ll need to cover yourself in the event of an injury.
- Your Profession:
Are you a surgeon? What if your injuries cost you the use of your hands? As you recover and discover a new profession, how will you make ends meet?
Do your homework.
Assess your risks:
- Does your lifestyle have you on the road a lot? Are you a traveling salesperson?
- What do you drive? A minivan? A roadster? The vehicle you drive can affect the premium you pay.
- How about that driving record? Experience level? Age? These factors can all change your rates.
- Here’s why your credit score affects your insurance risk.
Once you determine how much coverage you need…
- Compare companies, products and coverage
- Take your needs, X coverage and Y limits, and compare apples-to-apples offerings from several insurance companies.
- Understand each company will rate you differently, so anticipate a noticeable difference in prices. Shop around. Ask questions.
Know this: Auto insurance is NOT a product. It is a CONTRACT.
You agree to pay the premium and the insurance company agrees to cover you, according to established terms.
Read those terms. Make sure you know what you’re getting before you sign.
Keep this in mind: Cheaper isn’t always better!
If an auto insurance company offers a policy that is far cheaper than those of its competitors, there’s probably a reason: more holes. Of course, that doesn’t mean that there aren’t good deals out there. It simply means that seeking the best value requires that we balance both the prices and the specific terms of the policies we consider. More often than not, you get what you pay for.
Did you know there are things you can do to lower your premium?
- Take Defensive Driving Courses, which can lower your costs by up to 10%
- Batch your insurance! If you own a home, consider packaging your auto and home insurance with the same company, for a bulk discount.
- DRIVE SAFELY.
Remember why you need this insurance. It shouldn’t be a burden. It’s protection. But prepare yourself before buying auto insurance!
Know your needs. Do your research. Ask questions. Use discretion. Spend wisely. Drive safely.
Still confused about auto insurance? Contact us for help on understanding your auto insurance needs and coverage.