Simply getting like quotes from different insurance companies sometimes isn’t enough. You can save more by examining each type of coverage and designing a policy to fit your own personalized needs. But first, you would need to understand the various coverages found in automobile policies. Understanding the basics might be the key to saving you money.
Here are Some Examples:
If you can afford to replace that older car, you may not need full coverage. That alone could save you hundreds. Full coverage generally refers to collision coverage and comprehensive, as well as other coverages required by state law such as medical payments and uninsured/underinsured motorist. It is important to talk to a professional insurance agent, even those you might talk to in a non-traditional or brick-and-mortar office, such as online or by phone.
Also look at the liability coverage. Do you need the higher limits? That depends on your own financial situation. If you own very little and don’t have a lot of income, lower limits might be adequate. Ask a professional what would be right for you. If you are simply looking to purchase state required minimum auto insurance, a liability only policy (along with any state required coverage such as uninsured motorist) would be the terminology used to get started. This, of course, would not fix or replace your own vehicle in an accident that you caused. For that you would need collision coverage.
Think about the amount of deductibles. Do you really need a fifty or hundred-dollar deductible? Five-hundred would be less expensive. Some companies won’t even offer the lower deductibles. A five-hundred deductible is pretty much standard.
Learn the difference between collision coverage and comprehensive. Comp only might be best for an older vehicle or one without a loan. Comprehensive would cover things like theft, vandalism, windshield breaks or chips, or damage from falling objects. Comprehensive would need to be coupled with the proper liability insurance and any other state required coverages.
Do you need towing and labor protection? Some new cars come with this anyway for a limited time. If your car is only a year or so old, ask the dealership if your car purchase included towing and labor and when does that expire. Also, if you have a separate motor club policy, you probably wouldn’t want to double up on this coverage. It is likely that only one would pay anyway.
For some people, a separate umbrella policy would be needed. Ask your professional.
The key is, don’t just obtain quotes without giving thought as to what might be appropriate for you. Talk to an insurance agent first. Then shop other companies, using those various protections. An apples-to-apples approach is the only way to compare fairly.
Remember, a one size fits all approach doesn’t work with insurance, especially with automobile insurance. Never just ask a friend what type policy they have. Automobile insurance is not something the average person understands fully. Only a qualified professional insurance agent can advise you accurately and help you personalize a policy to your own needs.
Getting the right coverages without over insuring is the key to saving money on your next automobile policy.