How to Shop for Car Insurance?
Wondering how you can be smart about how to shop for car insurance? Don’t worry; car insurance may seem overwhelming, but we’re breaking it down with a few easy steps to consider.
This post is about how to shop for car insurance.
Let’s dive into the top 7 ways on how to shop for car insurance:
1. Types of Coverage
Insurance can seem convoluted, BUT we wanted to break down a few of the different types of coverage so you can better understand what you’re choosing when choosing car insurance.
Liability: in the event of an at-fault accident, this covers damage or injury you cause to others. Think medical bills and property damage.
Collision: this covers damage to your car in an accident, regardless of the fault.
Comprehensive: this protects against vandalism, theft, fire, and other non-collision damages.
Uninsured/underinsured: this offers coverage if the other driver is at fault but they do not have (enough) insurance.
Personal Injury Protection: covers medical expenses regardless of fault. This may be required in some states.
2. Compare Quotes
Shop around! Insurance companies want your business; getting quotes from multiple companies are a great way to ensure you’re getting the best price for your desired coverage! There are plenty of ways to quickly get quotes now. Whether it be online or through the phone. Getting quotes is something companies have streamlined, so it’s pretty easy to hop on call with one of them and ask for a quote. The prices can have quite the range, so it’s good to shop around! Plus, hopping on a call gives you a chance to ask about other discounts the company offers. These discounts could be exclusive to their company, so it’s good to ask! A few minutes could save you hundreds – you never know!
3. Bundle Policies
Usually, the more different policies you bundle, the cheaper the individual policies. What does this mean? If you bundle your renter’s or home with auto insurance, it typically results in a lower amount if you were to get the renter’s insurance and auto insurance separately.
4. Optional Coverage
Roadside Assistance: if anything happens to your car while on the road, having this addition can help cover the cost (whether it’s towing, repairs, etc). Now, if you already have AAA, you likely will not be needing this. However, please check your AAA coverage prior to opting out of this entirely.
Rental Car: again, if anything happens to your car that makes it unusable (needs repairing after an incident), this coverage pays for a rental car until you can get your vehicle in operable condition. If you have access to another vehicle, you may not need this coverage. However, ensure this is the case before you opt out.
Gap: Things happen; if your car gets totaled and you end up owing more than its current value, gap insurance could help with that.
5. Negotiate
A few things to ask if the company you’re interested in offers discounts like good driver, bundling (renters/home and auto insurance, good student, etc). This is also when you take the multiple quotes you’ve gotten and pit the companies against each other. Let them fight for your business!
6. Review Policy Prior to Purchasing
Yes, there are a multitude of factors to consider when purchasing car insurance. As with anything before you sign on the dotted line, review your policy before you purchase! Does it contain everything you want to include? Did they add a coverage you wanted to opt out of? This is the time to review and request updates to your policy!
7. Payment Options
Car insurance companies usually have different frequency options for you to pay. This could range from monthly, semi-annually, or annually. Many will offer discounts if you choose to pay in a lump sum, so if you chose to pay semi-annually or even annually, it’s usually cheaper. If you want to save some money and are able, paying in lump sum could be for you!
To reiterate, the top 7 ways on how to shop for car insurance are:
- Types of Coverage
- Compare Quotes
- Bundle Policies
- Optional Coverage
- Negotiate
- Review Policy Prior to Purchasing
- Payment Options
