If you have decided to get car insurance, it is definitely a smart decision. A car is an big investment and covering it with insurance will save you a lot of stress. A quality car insurance policy will cover your expenses in case of car damage and injuries to yourself or other parties involved. Not to mention that most states require that you purchase a car insurance policy to drive a car.
Choosing the right company for your car insurance needs can be tricky. When searching for a car insurance auto quote, you will come across multiple options that may be confusing. So here is a resourceful article to help you compare auto insurance policies with 5 things to keep in mind when comparing quotes.
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Things to Consider When Choosing a Car Insurance Company
Before you start to compare auto insurance quotes, your first step should be finding a good insurance company. Searching for insurance companies will help you shortlist a few quality ones; then you can compare them to find a car insurance auto quote that suits your needs.
In order to shortlist good insurance companies, consider the following points:
Good Financial Standing
Make sure the company has a reputable financial standing. Just because you will be paying the money to an auto insurance company does not mean that you will get their help when you need it. The aim of insurance is not just financial security for your vehicle, but to get funds for damages within an appropriate time period. You can verify a company’s financial standing by using websites like the Department of Motor Vehicles (DMV).
Customer Reviews
Check reviews to find out what current customers of a particular auto insurance company have to say. This will help you determine if a company is responsive towards their clients’ needs.
This will help you get a good understanding of the customer service, turnaround time, coverage lapses and other information that will be important to helping you make the right decision.
BBB Ranking
You should check the company’s ranking by the Better Business Bureau (BBB). The BBB ranks insurance companies from A+ to F. This site will tell you how long a company has been in business, how many complaints the company has experienced, how many complaints were resolved and more.
State License
One of the most important things to verify about a car insurance company is whether they have a license from your particular state to sell insurance. For this purpose, you can log into your state’s Department of Insurance website.
5 Things to Consider When Comparing Auto Insurance Quotes
Once you have chosen the top three to five the auto insurance companies that look promising, it is time to compare the auto quotes from these providers. Here are 5 important things to help you compare auto insurance:
Deductible
The deductible is the amount you are obligated to pay for damages related to an accident before the insurance company starts paying. For example, suppose you chose a deductible of $500. Should an accident occur that results in $5,000 worth of damages, you will be responsible for paying the $500 deductible for car repairs before the insurance company pays the remaining $4,500.
Many people make the mistake of choosing a higher deductible because it lowers the premium they pay on their car insurance. However, choosing an affordable deductible is a smart decision if you will not have the cash on hand to pay at a time when you need it.
Bodily Injury
Bodily injury or personal injury protection (PIP) is not available in all states. In some states, it is a required part of the car insurance coverage, while optional in others. It is slightly different from the medical coverage because PIP also covers other expenses that may arise from bodily injury, including child care and loss of income.
It is obvious that choosing PIP is smarter than just purchasing medical coverage; however it is important to determine how much you will need to pay monthly for that benefit.
Property Damage
This is part of the liability coverage in a car insurance policy which is compulsory in most of states, with a certain minimum set by the state. This will pay for damages to property from to an accident.
Collision Insurance
While collision coverage may be an optional add on in some states, it may be required by certain lenders or lease holders. Collision insurance pays for the damages that occur from your car hitting an object, like a tree. It can cover the repair expenses or replace the car to the extent of its market value after the deductible.
Comprehensive Insurance
Comprehensive coverage is also not typically compulsory, but may be for those financing or leasing their cars. This type of coverage pays for multiple types of damage which may include fire, theft, vandalism, natural disasters and more. If your car is covered by comprehensive insurance, then your expenses will be paid after the deductible amount is met. It can also replace the car up to its market value if the need arises.
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