It is important to have car insurance most especially if you own a car. And below are the steps on how to buy a car insurance
Steps on how to buy a Car Insurance
Here are the steps to be taken to purchase a car insurance
Car Insurance: Do Your Research
Take your time to figure out what is available to you, the best companies in auto insurance, and also the special discount or the kind of services they offer to their customers. But if you are already thinking that you don’t have time for this, then don’t stress yourself as “an independent insurance agent can do the legwork for you”.
Meanwhile working with an experienced independent agent could result in a lower premium for the coverage selected.
Decide on what Coverage you need
You need to consider these questions before signing on the dotted line.
- What is your net worth
- Do you own a home
- Are you a business owner
- Is your car a newer model or a few years older
These above questions will help you to determine the coverage you will need to protect your assets. It is very crucial to know how much you require when making decisions about the amount required and also the type of coverage that’s best for you. For instance, choosing higher bodily injury and property damage liability coverage limits will offer you greater protection but it will also increase your premium.
And you should know that selecting higher deductibles will decrease your premium. This is because you will be responsible for a greater portion of the repair costs. However, there are many options to consider.
Car Insurance: Review Your Insurance
You need to read through your current policy or contact your auto insurance company, and this is to get the information you need. Just jot down the amount of coverage you have and how much you are paying for it. But just take note of the yearly and monthly cost of your insurance since you will get quotes both ways.
Checking Your Driving Record
You need to know how many tickets you have recently had. Meanwhile, if you can’t remember how long that speeding ticket has been on your record, then check your state’s department of motor vehicles.
Note: If a ticket or points you earned are about to vanish, Thereby improving your driving record, just wait until that takes place before you get quotes. You should know that nothing elevates the price of insurance like a bad driving record.
Solicit Competitive quotes
Its now time to start shopping, so set aside at least an hour for this particular task. You should have at hand your current insurance policy, your vehicle registration, and your driver’s license. You can however begin with online services. You can type in your information and begin to build a list of companies for comparative quotes if you go to an online site to get a quote for an insurance rate. Meanwhile, you should keep in mind that not all insurance companies participate in these one-stop-shopping sites. Each quote form takes an average of 15 minutes to complete. It might be worth your time. For instance, if the whole shopping process takes you three hours and saves you $900, you are however earning $300 per hour.
You should know that when you use these sites, you might not get instant quotes. Some companies may contact you later. While some that are not “direct providers” might help put you in touch with a local agent who will then calculate a quote for you.
Car Insurance: Gather Company Informations
You should take careful notes so you can easily make price and coverage comparisons while you’re researching companies.
Meanwhile, you should keep a list of :
The insurance company’s 800 telephone number so you will be able to obtain answers to questions you couldn’t obtain online.
The monthly and annual rates for the diverse types of coverage. Just make sure that you keep the coverage limits the same so that you can make apples-to-apples comparisons for cost and coverage.
- The insurance company’s payment policy.
- When is the due payment?
- The kind of payments they have available
- And what happens if you are late making a payment.
Car Insurance: Make the Necessary calls
Once you are done gathering information you need online, then make some calls. You now need to contact those companies from which you were unable to get an online quote. It can however be easier doing the research by phone compared to the internet, but provided you have your driver’s license and vehicle registration close at hand. Be sure to confirm the price by asking the representative to email the quote to you when you get a quote over the phone.
Check for Discounts
You should make sure you explore all your options related to discounts when shopping around. Insurance companies offer them for things like your car’s security and safety equipment, a good driving record, and certain occupations and professional affiliations. If you enroll in “pay as you drive” plans, some companies will offer you a lower interest rate. Also, you should consider using that same insurance for home and auto policies. This will get you a better price.
Car Insurance: Evaluate the Company
Now you have most of the information on the price and coverage you need to make a decision. You can now see which company’s coverage is the least expensive. However, keep in mind that the cost is not the only basis for choosing an insurer.
Review the Policy
When you have concluded and decided to stick with a company, read the main points of the policy over. Moreover, in addition to verifying that it contains the coverage you’ve requested and priced. It’s, however, a good idea to figure if the stated policy states that “new factory” “like kind and quality” or “aftermarket parts” may be used for body shop repairs, according to the Insurance Consumer Advocate Network.
Meanwhile, if the policy has such a requirement, you should consider thinking hard to know if its the right company for you. And particularly if you own a new car that you plan to keep for a while. In a case like this, It’s good to know at the outset that the insurer will pay for the original manufacturer parts. Rather than persisting on fighting over the issue when you have a claim later.
Car Insurance: Canceling of Your old Policy
After obtaining the auto insurance policy that you want, then you need to cancel coverage with your existing insurance company. Just make sure you put the card in the glove department of your car or your wallet if your state requires you to carry proof of insurance.