When buying car insurance you want to make sure you are covered in case you are in an accident, but at the same time you don't want to pay any more than you have to. Essentially, you want to get the best coverage and the lowest possible price. This guide will help you do just that.
The first thing to do to prepare yourself to buy car insurance is to start with the mind set that there is a cheaper rate out there. You can save yourself hundreds, or even thousands per year if you continue to think this way through the buying process. In a recent quote comparison conducted by Ally Car Insurance, one older vehicle had quotes ranging from $991 to $1893 annually. A potential cost savings of $902 a year. If you've had a car accident or a speeding ticket or two, it's probably time to shop around.
After preparing yourself to look for the lowest car insurance rate possible, you need to determine how much coverage you need. Take a minute to find out how much coverage is required in your area. After you figure out how much insurance is required by law in your area, decide if you need any coverage in addition to the minimum. Think carefully about how much additional coverage you need. If you are too cautious, you could end up spending money on a plan that you simply don't need. On the other hand, the minimum amounts required by law aren't always enough for everyone.
Car insurance experts recommend that anyone with larger amounts of assets, buy extra coverage on top of state minimums. If you are in an accident that is your fault, you can be sued for medical bills that exceed $50,000.
General recommendations for liability limits are $50,000 bodily injury liability for one person injured in an accident, $100,000 for all people injured in an accident and $25,000 property damage liability (that is, 50/100/25) considering half of the cars on the road are worth more than $20,000. Still, you need to let your own personal financial situation guide you to the proper amount of coverage.
Next, you should check your driving record and the amount of coverage you currently have. If you have tickets that are set to clear your record soon, then it's best to wait until those tickets clear before shopping for new car insurance. IF you have a good number of tickets, accidents, and the like, then additional comprehensive coverage is for you.
Now that you have the right mind set and you know how much car insurance you need, it's time to go shopping! Begin by using our free car insurance quote calculator. The forms will take only a few minutes to complete. While you are filling out the form, remind yourself of how much money you are going to save.
Once you have tried our free quote calculator, it's time to work the phones. Those companies you haven't been able to get an online quote from should be contacted. At times, doing this process verbally can actually go faster than the online counterpart, providing you have all the information regarding your driver license and vehicle registration close at hand. When you get a quote, be sure to confirm the price. Also, ask them to fax or e-mail the quote to you as a record.
Now that you've gather several quotes, it's time to choose the right car insurance company for you:
- Visit your state's department of insurance and check consumer complaint ratios and basic rate comparison surveys.
- Get in touch with local body shops or dealerships you trust and ask which insurance companies they recommend.
- Consider contacting an insurance agent for additional information about a particular company.
- Check out the financial strength ratings for an insurance company by referring to the A.M. Best and Standard & Poor's ratings.
- Look over J.D. Power and Associates' consumer satisfaction surveys reviewing auto insurance companies.
After you've decided on your new insurance provider and have begun coverage through them, it's time to cancel your old policy. Be sure to put proof of insurance in your vehicle. Lastly, decide what to do with all the money you've saved!