Auto insurance is one of those necessary expenses that you must have, but how do you know if you’re getting the best rate? One of the most important things you must do is come up with a list of your must-have insurance requirements before you make that first phone call or go online to obtain a quote.
Here are some tips to obtaining the best insurance for your needs:
–Get several quotes. Insurance rates can vary considerably from company to company, and if you get several quotes you can save hundreds of dollars. Generally, you’ll need $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. Make certain all quotes are based on the same liability.
–What is the deductible? The deductible is the amount of money you will pay out of pocket before the insurance payment kicks in. When obtaining quotes from various companies make certain your quotes all have the same deductible. Insurance rates are generally lower the higher your deductible rate is.
–What does your state require and what do you really need? Each state has difference minimum requirements for coverage, so it’s a good idea to find out what your state laws are. Once you know the minimum requirements, you can determine if that is enough for your life needs.
–Have your current policy in hand when obtaining quotes. That way you can immediately see if you’re getting a better deal or a raw deal. Some insurance companies will give you a monthly quote, a six-month quote or a yearly quote. Make certain you are comparing the same length of coverage.
–Get ready to haggle. Insurance companies want your business. If you are dissatisfied with your current company, get quotes from several others and then call your current company. Many times the company will match the low quote or throw in something extra-such as insuring rental cars or providing 24-hour tow service. Tell your company you want to stay with them, but you’re concerned that their rates are so much higher for the same coverage as another company. Many times this works, and if it doesn’t, cancel your policy and contact the company with the lower quote.