How Much Coverage Is Right for You?
Perhaps the most frequent question we get is, “How much insurance do I actually need?” Unfortunately, each driver must answer that question for themselves. And until you know how much coverage you actually need, you won’t be able to compare rates from different carriers adequately.
What Is the Mandatory Auto Insurance Required?
Before you decide how much insurance you need and start comparing quotes, it’s important to understand the minimum level of coverage. And it is equally essential to get more than that coverage.
You may be tempted to go with the minimum level of coverage to save money on insurance. But what if you cause an accident and the amount of bodily damage or property damage exceeds your minimal coverage?
In that case, you will be left paying a serious amount of money out of pocket and may even end up in extreme debt. Compared to that, it’s always better to play it safe and get more than the minimum!
How to figure Out Your Deductible when you Compare Insurance Quotes
One of the biggest factors concerning your insurance premium is the deductible. Generally speaking, lower deductibles lead to higher premiums, and higher deductibles lead to lower premiums.
When you compare insurance, you’ll need to figure out what kind of deductible you want. To determine the answer, it’s important to take a long, hard look at your current vehicle.
For example, if your car is new and/or expensive, you may want to go with a collision insurance plan that has a low deductible. Otherwise, a wreck could lead to some costly bills, and a high deductible means you’d be paying for most out of it out of pocket.
However, if you have an older vehicle and have sufficient assets in the bank, repairing your vehicle after an accident may be much easier. In that case, you should opt for a higher deductible and enjoy the ongoing benefit of a lower monthly insurance premium.
Now that you know enough about these various factors, let’s dive into how you can compare insurance quotes from different carriers.
Make Sure the Quotes “Match”
We already covered one of the most important items when comparing car insurance quotes earlier. Whenever you compare quotes, you need to make sure they are offering similar types of coverage, limits, and deductibles.
Some carriers will try to catch your eye by quoting very low amounts. But if you check the fine print, you might see that one company isn’t offering nearly as much coverage as similar carriers. But as long as you know how much coverage you want and know how to check that fine print, you’ll be fine.
Speaking of fine print, check to see if the quotes include any special discounts through the insurance company. This information can help you decide and may even lead to an ongoing conversation about other special deals offered by the carrier.
Buying Car Insurance Quotes Online vs. By Phone
When comparing insurance quotes, you may have a pretty big question: What is the best way to actually compare?
Most insurance websites can now provide quotes online. You simply provide certain information, click the button, and get your quote.
However, this process was designed to go fast, and the incomplete information the website asks you for may not consider all of the pertinent factors. Because of that, we often recommend that you get an insurance professional on the phone.
Calling up the different carriers takes more time than simply getting quotes online. But speaking to an actual person at each company is a great way to get a more competitive car insurance premium.
And to save time, you can always use online insurance quotes to narrow things down to your top five companies or so. Then you can call each one and see what kind of prices they have to offer.
When Is a Good Time to Shop for New Auto Insurance Quotes?
As we noted above, you can change insurance carriers at any time. And it’s good to compare rates at least once a year. Beyond that, though, there are certain times in your life where changing your insurance company or policy will be very beneficial.
For example, if your credit score has improved, you should start comparing rates. A better score may lead to a better premium. And if you’re about to move, a new insurance company may be able to offer a better rate once you have moved.
If your driving history has changed, it’s worth comparing rates. A history of safe driving can lower your premium. And if you aren’t driving as much (perhaps due to work from home), you may be able to get a lower premium.
Finally, it’s always worth shopping around when you are adding a new driver to your policy. Adding teenage drivers, in particular, is certain to drive your rates up, and it’s important to compare rates and find savings where you can.
Compare the Best Car Insurance Rates Today
Now you know everything you need to know about the average cost of car insurance. But do you know who can help provide you with a better rate as early as today?
Here at Freeway Insurance, we understand that you don’t have a ton of free time to research insurance rates. To make things easy for you, Freeway can quickly and easily provide you with an online quote. Or feel free to give us a call at (800) 777-5620. Finally, you can also visit us at an office near you.