We live in a country that believes all men are created equal. Too bad you can’t apply that same philosophy to insurance quotes! Quote shopping would get really easy, really fast. Since we can’t, here’s what you need to know before you start comparing auto insurance quotes:
1) There are more differences between your auto insurance quotes than the price. There is no governing body telling auto insurance companies what they have to cover and what they don’t (and how much), which means you need to find out exactly what you’re paying for and what you’re not before you know if you’re getting a good deal.
2) There are four types of coverage you need to compare when you’re shopping for insurance: liability, comprehensive, collision and uninsured motorist.
3) Liability coverage protects your financial assets if you’re in an accident and someone is injured, another car is damaged or you destroy someone else’s property. (For example, by driving through a store window! Don’t laugh. It’s happened.)
4) Most states have their own limits when it comes to minimum liability coverage, but just enough is almost never enough. Most leading experts recommend that you maintain a minimum of $100,000 per person and $300,000 per incident in liability insurance.
5) More drivers than ever are out on the road without insurance courtesy of today’s recession. You want to make sure you’re protected if you’re unlucky enough to be in an accident with one of them by maintaining uninsured motorist coverage for AT LEAST the value of your car.
6) If you’re in an accident that you caused your liability insurance will pick up the cost of repairs to the other guy, but what about your car? Unless you can comfortably afford to buy a new car right now (or you don’t mind going without) you’re going to want to keep collision coverage added to your insurance policy.
7) Some companies are happy to toss in some “extras” with their auto insurance policies. Others will make you pay for them! Things like additional medical coverage, car rental insurance and emergency roadside assistance are nice if you feel you need them, but make sure you take their cost into consideration when you’re purchasing auto insurance.
Now that you know what’s involved in buying an auto insurance policy you have the tools you need to make a good decision regarding your insurance quotes. When you’re calling around make sure you write down not only your quote but also what kind of coverage is included in that quote. Have some idea of what’s important to you and what’s not, and keep in mind that limits do matter!
With a little bit of homework you’ll be able to comfortably walk away knowing you’ve picked the right auto insurance quote the first time.