Buying a car insurance is highly necessary especially if you happen to have a very expensive car or rather if you’re buying a car for the first time or you haven’t paid attention to your insurance policy in a while then this guide will help you because you’ll definitely need an insurance in case you get in an accident or worse but you don’t want to pay more than you have to because research shows that over 67.63% of people overpay their car insurance and are still not perfectly ensured.
However, you could save hundreds of dollars a year only if you take your time and do some comparisons shopping a recent research we carried out occurred with two old cars that ranged from $1,206 to $1,974 which made it a significant difference of $768 a year so if you’re paying thousands to your current insurance company because you have a couple tickets or an outdated unfavorable credit rating, shopping your policy against others might be well worth the effort.
Top 10 Tips Before Purchasing An Auto Insurance Package For Your Car
Here are our top 10 tips to help you in buying a suitable car insurance
How much Coverage do I need?
In order for you to be on a safer side, you need to, first of all, know how much coverage you need because coverage varies due to the model of car you need or use and also it varies from state to state. Experts in car insurance recommend you getting enough liability coverage in order to protect them. If your finances are mismanaged and you happen to fall in a situation whereby you have $35,000 of medical bills coverage but in your personal assets you have just $60,000 and you happen to be in an accident whereby it is discovered by the attorneys of the second party that you’re at fault they could go after your medical bills and much more that aren’t covered by your policy, So we strongly advice you to let your financial situation be your ultimate guide and also your prospect so as to avoid unnecessary expenses because if you have no assets that the second party’s attorney can seek then no need to buy coverage.
Take a Review of Your Insurance
Contacting your insurance company should be the first thing you need to do when insuring your car so as to know the do’s and dont’s and also know the policy guiding you as a customer,Learn to note down the amount the of coverage you have now and also the amount you’d be spending on it and never forget to keep track of your yearly and monthly insurance cost just to help set a figure to beat.
Check Your Driving Record and History
Bad driving records can drive your insurance cost way up than you can actually estimate. So if by any chance you happen to be receiving a lot of tickets to an extent whereby you forget the number of tickets you’ve had then there’s a problem and you need to check with your state’s department of motor vehicles. If In a situation you realize your points or tickets are about to disappear then wait till that happens and then proceed to get an insurance.
Outsource for Competitive Quotes
Now you have to take your time in this aspect as this is a very tricky part as you have to be ready and also very careful, we advise you set aside at least an hour for this particular task. Here are things you need to have at hand when sourcing for insurance on your car:-
- Driver’s license
- Insurance policy
- Vehicle registration
Remember to take your time and have a thorough check on the company you’re handling your insurance onto, you can also call the company’s toll-free number to get a quote.
Gather Company Information
While researching for companies always take your time to make coverage and price comparisons, also keep a list of Their Annual and monthly rates so as know the different type of coverage. Try to keep in touch with the insurance company so as to get early updates and news concerning your policy, answers to your questions amidst others. Know the insurance company payment policy, the kind of payment plan is accepted, when the payment is due and also what would happen for a late payment.
Work the Phones
After gathering information online,try to make contact. Call the companies that you weren’t able to get an online quote.Doing a comprehensive research by phone can actually be easier and faster provided you have your driver’s license and vehicle registration at had then don’t to forget to confirm the price by asking the representative to email a quote to you.
Keep an eye out for Discounts
Keeping an eye out for a discount can really help you out and serve as an advantage to explore all your options related to discounts. Insurance tends to reward customers for good driving records, proper car safety, better security equipment, professional affiliations amidst others. Some companies of recent even offer low and affordable rates if you enroll in a “pay as you drive “ plans, others have substantial discounts for young drivers in a particular family who have good points. Also, it is advisable to use the same insurance company to get a better price and discount.
Find out more on the Companies
The financial strength of a company is necessary and needs to be considered, you can check which company coverage is the least expensive and also their company-to-customer relationship or their customer satisfaction and get reviews based on it so as to help you know how they treat their customers either well or otherwise as they claim.
Review the Policy
When you’ve done your research and zeroed in on a company, read over the main points of the policy. In addition to verifying that it contains the coverage you’ve requested and priced, it’s a good idea to find out if the 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. If the policy has such a requirement, think hard about whether this is the company for you, particularly if you own a relatively new car that you plan to keep for a while. In this case, it’s best to know at the outset that the insurer will pay for original manufacturer parts rather than try to fight over the issue later when you have a claim.
Cancel Your Old Policy
After you have the auto insurance policy you want, cancel coverage with your existing insurance company. If your state requires you to carry proof of insurance, make sure you put the card in your wallet or the glove compartment of your car.