Car insurance is a necessary and permanent part of vehicle ownership and it is important that consumers find the best car insurance and rates when purchasing a new policy. Because there is a huge variety in price, coverage, and customer service quality offered between different insurance companies, you must comparison shop policies to get the ideal coverage for you and your family. There are multiple ways you can go about ensuring you buy the best car insurance.
Insurance premiums always depend on the chosen level of coverage. Each state has different liability coverage requirements, but once those are met, it’s up to the driver to determine which limit they choose and the additional types of coverage added on. Policyholders can choose from comprehensive, collision, personal injury protection, medical payments coverage, and even roadside assistance. Customers can usually choose up to six types of coverage to meet their needs, starting with basic liability coverage on its own. However, comprehensive coverage can protect the driver from almost anything that isn’t accident-related and therefore may offer better value for money than just liability insurance by itself.
Liability Auto Insurance
Liability auto insurance covers claims if a driver causes damages or injuries in an accident. It also covers the cost of attorneys to defend the insured person in a lawsuit arising from a covered accident, up to the limits of the insurance policy. If the policy limits are not high enough, the insured person will have to hire his or her own attorney and might be held responsible for damages over the limit.
Collision and Comprehensive Auto Insurance
Collision and comprehensive coverage pay for damage to the insured vehicle that arises from an accident, vandalism or theft. Although no state requires motorists to carry this option, many finance and lending companies that handle car loans require this type of insurance as a condition of the loan. Failure to carry collision and comprehensive coverage can result in repossession of the car. Since the cost of optional protection varies more than the cost of mandatory policy options, consumers would be advised to regularly compare companies and premiums to guarantee they are always getting the lowest insurance package.
Uninsured Motorist Insurance
Some states require that drivers carry uninsured motorist coverage because pays for damages and injuries to the insured person and his or her passengers in accidents involving drivers with no insurance. This coverage will also force your own insurance company to pay out damages that exceed the other driver’s policy limits, making certain you never have to dig out-of-pocket for any expense other than the deductible.
Medical payments insurance is usually limited to between $1,000 and $5,000 and covers medical bills for injuries incurred by the insured person or passengers in an auto accident. Most states do not require this type of car insurance, but no-fault states may require that residents carry personal injury protection (PIP) coverage. PIP insurance is a form of medical payments protection which may also have benefits for lost wages, essential services and even a death benefit, depending on the state.
Check For New Customer Incentives
Some insurance companies offer special discounts for new customers. Typically these discounts are good for six months to one year. Other insurance companies offer extra coverage like roadside assistance or pet insurance for free. While the cost of this type of coverage is usually low, if the difference between rates is small, it can be worthwhile to consider. However, new customer incentives should be the icing on the cake after you’ve considered other, more common discounts such as “multi-car discounts”, “safe driver discounts”, “good student discounts”, and “low-mileage discounts”.
Ratings & Companies
Checking independent consumer websites such as JD Powers or AM Best is an important part of finding the best car insurance. These rating websites use consumer reviews to rate companies in categories such as financial stability, customer service and pricing. The companies that are rated the best by consumers are rated four or five stars out of five. It is a good idea to stick to these top rated insurance companies when seeking to purchase a new policy, especially since the financial strength of a carrier indicates how likely they will be solvent and able to payout claims if and when you file one in the future.
The best car insurance may not always be the cheapest policy available. Unfortunately, sometimes you get what you pay for. Most policyholders do not contact their insurance company unless they are paying a bill or making a claim. It is extremely frustrating when the company provides poor customer service or is difficult to contact. This is especially true after paying premiums for several years to the same company and particularly when you are irritated already and need to file a claim after an auto accident. Make sure to pay particular attention to consumer reviews on customer service to get the ideal car insurance for your needs.
Understand the Terms and Conditions
Thoroughly understanding the terms and conditions for auto insurance policies is the only way possible to fully comprehend and take advantage of the benefits you are purchasing. Each company will offer many different types of coverage while specializing in specific kinds, and it is fundamental that consumers compare prices for multiple carriers. Be sure to ask questions if any arise, as this will also be a great way to determine how good the company’s customer service is, as well as making sure that the terms and conditions of the policy are completely understood.
Before renewing an automobile policy, it’s a good idea to shop around to see what other policy options, companies and prices are available. The huge variation in rates, types of coverage, and customer services offered makes this step especially important because consumers can save hundreds of dollars just by shopping around with online quotes to find cheaper rates. Insurance companies have made it easy to receive a variety of rate quotes and buy a policy online.
Buying a great car insurance policy doesn’t have to be overly time consuming. There are plenty of resources, like MyBestCarInsurance101.com, available online to make sure that policy holders are well-informed on how to maneuver the insurance industry and get the best coverage with the cheapest cost.