Auto Insurance 101: Are you Saving Big?

Shopping for auto insurance isn’t a complicated situation. As long as you know what you’re doing, you should find yourself with one of the best rates on the block. Before you call up that insurance agency or look up a quote online, there are some things that you should know.

The Coverage
Every state will require that you have liability coverage, and the minimum limits will vary. As for comprehensive and collision coverage, this is optional. These two additional coverages are not only the most important but will be the main reason your auto insurance quote is so high. Let’s take a quick look at what each one means for you:

  • Comprehensive: This coverage will pay for losses due to a fire, theft or any other result that isn’t covered by any part of the policy. This coverage isn’t required, and it will require a deductible that will usually range from $0 to $1,000.
  • Collision: Also known as accident coverage, this is what will cover you in case of an accident. It will repair or replace your car back to its normal state. Again, like comprehensive, this will have a deductible that can be as high as $1,000 on average.

Aside from the collision and comprehensive coverage, there are a few other coverages you may be interested in. This can include roadside assistance which can assist you with problems on the road. Another popular coverage includes GAP insurance. This type of insurance can cover your entire car loan in case of an accident that destroys the car.

Choosing an Insurance Company
When selecting an insurance provider, you won’t want to choose the first one that you come across. Instead, take your time to research the possible candidates out there. When researching, there are a few things that you will want to keep in mind. Here’s how you can find the best insurance company:

  1. Check insurance ratings. Publications such as A.M. Best will show you the financial strength of the company.
  2. Check licenses. Always make sure that they are licensed in your state.
  3. Regulatory Action. Check to see if any actions have been filed against this company.
  4. Reviews Online. See what other customers are saying. Are they good? Bad?

Know your Discounts
Saving on your auto insurance can be done. Don’t just pay a full premium price because your agent says so. Instead, know about the discounts that are available out there. Here are some discounts you may qualify for:

  • Theft Devices: Cars with theft devices can bring down a policy by more than 10 percent.
  • Multiple Policies: If you have a homeowners, additional car or a boat insured with them already, multiple discounts can apply.
  • Pay Yearly: By paying your premium once a year, insurance companies can offer slight discounts.
  • Mileage: If you don’t plan on driving the car a lot, let them know. The less miles you drive, the more you can save.
  • Deductibles: As explained above, if you do decide to pick up comprehensive and collision coverage, try to have a higher deductible. The higher it is, the less you will pay.

Getting an auto insurance quote shouldn’t take up that much of your time. As long as you understand your policy and compare companies, there’s no reason you shouldn’t have the best policy possible.

Author’s Bio: Jimy Jones is a well known financial advisor and has written many articles for to know more search in the following website.

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