Finance

5 Questions to Ask Before Buying Car Insurance

When it comes to buying auto insurance, it is good to ask yourself several questions before sealing any car insurance deal out there.
Shopping around is essential to getting a better deal than just picking the first company you come across during your search. Outlined in this article are some of the questions you should ask yourself before buying car insurance.

1. What Type of Coverage Do I Need?

Bear in mind that each state has its own requirements. But in most states, car liability insurance coverage is a must. This is usually divided into bodily injury liability and property damage liability. If an accident occurs and you are in fault, bodily insurance will pay for the body injuries sustained by third parties, and depending on your state this can include not only medical expenses, but also wages lost due to injuries. In such a scenario, your property damage liability would pay for any property damage to others and other person’s vehicle plus other damages. it is therefore good to know the coverage you want so that you do not purchase unwanted coverage.

2. How High is My Risk?

Usually, risk assessment by auto insurers is based on factors such as sex, age, occupation, where you reside, time you have been driving, and many other factors. Obviously, rates for first-time drives are usually high. Also, people with criminal records are marked as a higher risk. Note that the greater the risk, the higher the premiums.

3. Can I qualify for Discounts?

Actually, there are certain things you can do to lower your risk and be able to get auto insurance discounts. If for instance you are a student, discounts can apply for getting better grades. Other discounts are given for additional safety features of your car such as having an alarm or air bag. Also, if you apply for multiple types of insurance with the same company you can still get a discount. In fact, there are many ways to qualify for discounts, so consider asking your auto insurer.

4. Who Will My Policy Cover?

If you are planning to share your vehicle with your family or business partner, then you need to get an extra coverage. Depending on the extra people added to your policy, your premiums have to rise accordingly.

5. What are My Payment Options

Car insurance is actually a big financial commitment. So, you should work out how you will be paying. Certain insurance companies ask their clients to pay in annually or pay half of your annual amount every 6 months. Look for a service provider you are comfortable with the payment plan.

Conclusion

Always shop around well to find an auto insurance company that is going to meet your needs. Remember these companies are not created the same, so you have to do a thorough research before settling on one.

Photo Credits:  lowmanlawfirm

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