Buying auto insurance the right way

Auto insurance is just one of those things that people cringe at the thought of. How do you be adequately covered without actually paying through your nose for it? Nobody wants to pay too much, but no one wants to be caught in a situation where they are under-insured and don’t have enough to pay for all the damages. So how do you go about buying insurance the right way? Here’s how:

Spend some time doing your research

People don’t like the idea of doing anything that requires time and effort. But quite honestly, buying insurance is just one of those things that requires plenty of research. People could save hundreds of dollars every year if they just spend time doing comparison shopping. And it’s gotten so easy over the past few years! You can insurance quote websites, or even each company’s individual website to get a quick quote on your vehicle. A quick comparison and you have an idea of what you’re dealing with.

Figuring out how much coverage you should carry

Every state has a minimum requirement for the amount of coverage you need to carry on your vehicle. You should find out what your state’s minimum legal requirement is and then proceed to deciding the coverage you should carry. If you own a car that is over 10 years old, it might not be a wise idea to carry collision and/or comprehensive coverage on it, because when you think about it, the cost of repairs (should you meet with an accident) could exceed the value of the car at the time of the accident. Visit the Kelly Blue Book website to find out the value of your car and then work out your coverage requirements. Remember, several factors go into deciding your car insurance rate, like your age, where you live, driving and credit history, marital status etc. So take all these factors into consideration when choosing your coverage.

If you are currently insured…

If you are currently insured, take time to review your policy. Read it through. Jot down everything you’re paying for and the amount of coverage you have. People tend to forget all about their policies once the papers are signed. But the truth is coverage depends upon a number of factors. Life changes such as divorce, getting married, moving house, switching jobs, retiring etc can definitely affect your rates. So if there have been any recent changes in your life, let your insurance agent know as soon as possible.

Research the company

You should do a background check on the company before you sign papers. Do they offer 24-hour claims service? What is their payment policy? What are the payment plans? What happens if you make a late payment? How prompt are they settling claims? Read articles, talk to people, question the company and get the answers you need. Do what you can to assess the company’s track record.

Auto insurance is just one of those things that requires research and planning ahead. Be willing to spend time and effort before buying an automobile insurance policy and you should have no problem.