Things To Know While Choosing A Car Insurance

How To Know The Right Insurance For Your Car

When done right, choosing the right car insurance can reduce our insurance costs. Understanding about car insurance premiums, when they go higher or lower, will also help you save money. Here are a few tips to help you shop and get the best price.

COVERAGE

It is important to know what kind of coverage your car needs. Make sure your insurance covers the ‘minimum car insurance requirements’ declared by the state. It is also important to know the policy limits to understand what you’re getting when choosing an insurance. The requirements declared by the state is just a guideline, you can go as high as you want to protect yourself.


The different types of coverage are as follows:

  1. Bodily Injury Liability
  2. Property Damage Liability
  3. Personal Injury Protection
  4. Uninsured/ Underinsured Motorist
  5. Comprehensive
  6. Collision

Gap Insurance is another aspect of car insurance which helps you cover the cost of mortgage or loan on your car, incase of total wreckage or stolen car.

Roadside assistance coverage is required if you’re not a part of any car clubs.

Rental car insurance helps you get a reimbursement for the rented car incase your car is at the repairs

Associated legal costs coverage help you cover the costs in case the damage is caused by you. It helps you cover legal fees, court costs, etc.

Various factors that affect the cost of your car insurance premium are :

  1. Your age
  2. State and ZIP code
  3. Your credit score
  4. Driving history
  5. Car make and model

Company

Once you know which type of coverage you need, start researching the insurance companies which provide the same. Learn about the company’s financial strength, how they will determine your price depending on your credit score, how efficiently they file claims, how long it takes to get claims approved and their customer service. It might be helpful if you learn about what might impact car insurance before making a purchase.

Making The Call

Once you have decided and researched different companies on the insurance they provide, start getting quotations from them. Compare the costs and make the right call for your car depending on the type and age of the car. Make sure to give all your details to the company including any previous claims with your old insurance company so that you get the exact cost of the insurance.

When Should You Get A New Insurance

  1. When you have a new driver for your car.
  2. When you turn 25! (Insurance costs reduce as you turn old)
  3. You’ve been driving safely.