Before diving into monthly premiums, assess your needs.
After what seems like an eternity of finding the right car, you may start to finally relax once you’ve found that perfect 4-door sedan for the family. Even though you think the hardest part is over, auto insurance is yet to be purchased. While it’s not a difficult task, it can be daunting for those who don’t know what coverage is best for them.
Before securing a car insurance policy, ask these questions.
What coverage do I need?
Each state has its own requirements. In most states, auto liability insurance coverage is mandatory. It’s important to know what coverage could be best for you, depending on your needs, vehicle, and financial situation. You may want to raise liability limits to protect your finances or Roadside Assistance so that you have a helping hand when you need it most.
What is my risk?
Risk assessment by auto insurance companies is based on a number of factors, such as age, sex, occupation, where you live, and how long you’ve held your license. Rates for first-time drivers are likely to be high, but there are going to be ways that you can lower your premiums. In general, the greater the risk you are to the insurance company, the higher your premiums.
What is my deductible?
If you’re involved in an accident, you will have to pay a certain, pre-agreed amount (the deductible) before your insurance kicks in. You can choose the amount to be higher, so that you have a greater out of pocket cost in the event of an accident, or lower, which will save you on monthly premiums. Discuss with your insurance agent about what is right for you.
How do I file a claim?
Once you have an insurer in mind, ask them how and when you need to file a claim. Many insurers have online forms, apps, and 24-hour customer services so that filing a claim is easy and simple.
Is there a local office?
If you’re the type of person who prefers to go into a local insurance branch and sit down with a representative, aim to find a reliable company in the area. If there are documents to sign and complicated jargon to understand, sometimes visiting an office is better for individuals.