In the United States, it’s mandatory for all drivers to have proper car insurance before taking to the road. However, with so many different types of vehicles and motorist needs, there are also many coverage options. While rule of thumb dictates that it’s best to have at least the minimum coverage for the peace of mind that you’re protected in the event of an accident, much more goes into deciding on your ideal policy. Here, we will look at four tips to help you compare different car insurance plans, and how to make an educated decision on the type that’s best for you.
1. Comparing Policies by Company
It never pays to be an uninsured driver, but choosing the best coverage (as well as how much coverage) can be a difficult decision. You can start by comparing identical policies of different insurance companies. For example, if you have a new car and are adamant about purchasing collision coverage for specific scenarios, you can approach three or four different companies for the same auto insurance quote. Additionally, you can use that data to calculate the average rate for your desired car insurance coverage, then begin your insurance shopping with that figure as your starting point. When you begin comparing insurance policies, have a key figure in mind as your coverage limit. This will help you resist unnecessary add-ons that your particular vehicle may not require.
2. Checking a Company’s Feedback
While you may be specifically researching different car insurance policies rather than companies, comparing how individual insurance firms handle their clients can be an educational guide. For example, reading the consumer feedback for different insurance companies can give you a solid idea regarding the turnaround time for insurance pay-outs, as well as each company’s protocols regarding the different policy types. Take a good look at how competitive insurance providers handle comprehensive insurance, natural disaster assessment, collision coverage, and both each company’s individual car insurance premiums and incentives. You can learn a lot about the available policies to consider by reading the first-hand the experiences of other drivers.
Aside from mere feedback, reading consumers’ experiences can help you read about hypothetical scenarios that seem familiar to your own car insurance needs. Although it always pays to ask many questions of potential auto insurers that you’re considering, sometimes the personal stories and experiences from drivers like yourself are well-worth your time and effort in learning how individual policies work.
3. Individual Policy Discounts
When it comes to researching new insurance policies, there are sometimes great incentives and discounts that go with certain offers. While comprehensive coverage will protect the driver from damages other than a collision (such as natural disasters and vandalism), and collision coverage is meant to protect a driver’s interests in the event of a road accident, you may want to examine both policies together. As a sign-on bonus, some car insurance companies will reward a new enrollment (especially for a good driver with an established credit history) by offering a lower premium or a lower car insurance rate. When comparing the different available policies, inquire if enrolling in more than one option will actually put you financially ahead.
4. Optional Auto Insurance Coverage Policies
Depending upon the auto insurers’ protocols regarding liability coverage and incentives, your free car insurance quote may include options for additional policies that complement the primary coverage you choose. If that’s the case, it’s worth considering additional policies. For example, if your car is at the mechanic shop, your car insurance company may offer a policy which provides you with a temporary rental car until your repairs are completed. Towing, road-side assistance, and other third party add-ons may all be cost-efficient as part of a secondary, discount insurance policy.