A good auto insurance policy is crucial to keep you protected while you’re on the road. Whether you’ve just bought your first car or you’re looking to make a switch, finding insurance that’s both affordable and offers enough protection can be challenging.
There are many different car insurance companies, and they all offer multiple plans with different features and coverage. So, how do you figure out which is the best auto insurance for you? Let’s take a look at some tips and tricks that will help you make the right choice.
Also Read: Switching Car Insurance In 7 Steps
1. Figure Out How Much Coverage You Need
Before you even start the hunt for a new car insurance policy, figure out what kind of policy you need and how much coverage to buy.
Liability insurance covers the cost of damages to other people and their vehicles when you cause a car accident. Each state has different minimum liability coverage requirements. You can find out yours by visiting your state’s DMV website.
It’s generally recommended that you purchase at least $50,000 bodily injury liability that covers one person injured in an accident, $100,000 to cover everyone injured in an accident, and $25,000 property damage liability. You’ll usually see these numbers abbreviate to 50/100/25 when looking at plans.
Liability insurance doesn’t cover damages to your own vehicle, yourself, or your passengers if you cause an accident. For this reason, you may want to consider full coverage. Not only does a full-coverage plan include liability insurance, but it also includes collision and comprehensive insurance.
Collision insurance covers damages to your car when you’ve caused an accident, whether you’ve hit another vehicle or something else, like a tree or a fence.
Comprehensive insurance covers damage from weather and storm, hitting an animal, and theft or vandalism.
Once you’ve figured out how much coverage you’ll need, you can move on to the next step.
2. Compare Car Insurance Quotes
It’s imperative that you compare car insurance quotes from different companies to find the best auto insurance. We recommend that you get at least three quotes.
You can spend some time looking up companies or checking the websites of the companies your friends and family recommend. However, an easier way to shop and compare would be by using an online comparison tool, such as QuotePurple.
You’ll need to input some information, so make sure you have that on hand. This includes your vehicle’s VIN and the year, make, and model. You’ll also need a copy of your current insurance policy if you have one.
Make sure that when you’re comparing plans, you’re looking at identical coverage and deductibles to get the most accurate comparisons.
3. Decide on Your Deductible
When you file an auto insurance claim, you’ll be responsible for paying the deductible amount. Usually, the higher your deductible, the lower your monthly premium will be. This could help lower your insurance cost, but be aware that you’ll have to pay more at the time of an accident.
Consider your financial situation to determine what amount you would feel comfortable paying out of pocket if an incident occurred.
4. Look For Discounts
After you’ve narrowed down your options, find out if any of the companies you’re leaning towards offer discounts. Sometimes these are advertised on their websites, but you can always call and ask a representative.
Some discounts you may find are:
- Good students
- Clean driving record
- Drivers who’ve taken a defensive driving or driver’s education course
- Drivers with anti-theft systems
- Active or retired federal employees
- Multi-car policies
- Bundled policies that include homeowners or renters insurance
- One-time annual payment rather than monthly
5. Assess Your Options
Now that you’ve found a few companies and policies that you like, it’s time to do some research into the companies you’re thinking about using. Lower premiums and the best rates aren’t the only things to consider. You’ll also want to make sure whichever company you choose is financially sound and will treat you right.
To find out about closed insurance complaints, financial data, and licensing information of insurance companies, you can use the National Association of Insurance Commissioner’s Consumer Insurance search tool.
They also have a tool to check for consumer complaint ratios in your state’s department of insurance. Plus, you can see basic rate comparison surveys.
Ask friends and family and read reviews of the companies you’re considering to find out what current and past customers are saying about them. You can check out the Better Business Bureau to see their ratings, too. This will give you a better idea of who to choose.
Finding the best auto insurance can be tricky. Not only do you need to look into different plans, prices, and companies, but you’ll also want to make sure you choose a reputable company that’s going to take care of your needs.
Comparing companies and shopping around will give you the best chance at finding quality coverage at an affordable price.
Here at QuotePurple, we’ll provide you with an easy comparison tool. We’ll show you coverage from the best carriers to help you find the most affordable price and choose the auto insurance that’s best for you.
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