How to choose a car insurance company
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Getting auto insurance is not one of the most enjoyable aspects of owning a car, but one of the most important. Auto insurance is incredibly important as it can save you large sums of money and avoid legal issues in the event of an accident or if something unexpected happens to your car.
In addition to being very useful, car insurance is required by law in most states. In general, if your car is registered, it must also be insured. And if your car is not registered and insured, you cannot legally drive it.
As important as car insurance is, choosing an insurance company can seem like a hassle. There are a large number of insurance companies available and plans can vary greatly in both price and coverage.
Choosing an insurance company shouldn't be a big problem if you follow a few simple steps.
Part 1 of 3: Choose Your Insurance Priorities
Step 1: Decide what coverage you need. Different insurance policies have different levels of coverage, and it's important to decide what type of coverage you want for your car.
If you live in a busy city, drive every day, and park on a crowded street, you may need a very comprehensive insurance package. If you live in the countryside, park in your garage, and only drive on weekends, a comprehensive policy may not be as important to you.
Some insurance companies offer accident forgiveness, which means your rates won't go up if you have an accident. However, you can find a slightly cheaper plan if it doesn't include accident forgiveness.
- FunctionsA: While it's always tempting to choose the cheapest insurance packages available, you should always be sure of the coverage you're getting before taking out a policy.
Take some time to look through all the different options and determine which one you would prefer.
Step 2. Choose a deductible budget. Decide which group you would like your franchise to be in.
A deductible is the amount of money you must pay before the insurance company starts covering the cost of damage. For example, if your deductible is $500 and you need to replace your cracked windshield for $300, you will have to pay for it all. If you have an accident that results in $1000 worth of damage, you will have to pay $500 out of pocket and your insurance company will have to pay the remaining $500.
Different insurance plans may have different deductibles. Generally, a lower deductible means a higher monthly payment, and a higher deductible means a lower payment.
Consider how much money you have saved up and how likely you are to need repairs to your car, then determine if you want a low, medium, or high deductible.
Step 3: Decide what you want from an ISP. Choose what is important to you in the insurance company.
In addition to cost and coverage, consider the type of insurance company you are considering.
If you like a company with XNUMX/XNUMX service and support, buy insurance from a large corporate company. If you prefer great community service and the ability to meet with your insurance agent when you have any questions, a local independent insurance agency is probably the best fit for your needs.
Part 2 of 3: Do your research
Step 1: Check complaints against companies. Review complaints that have been filed against auto insurance companies.
Visit your state's Department of Insurance website and view the claim ratio for the various insurance companies you are considering. This will show you how many customers are complaining about suppliers and how many complaints are allowed.
- FunctionsA: You can also use this website to make sure every company is licensed to sell auto insurance in your state.
Step 2: Ask around. Ask around to find opinions on various auto insurance companies.
Ask your friends and family about their auto insurance and how happy they are with the policies, prices, and customer service.
Try calling your local mechanic and see if they have any advice on insurance companies. Since mechanics deal directly with car companies, they often have a good understanding of which companies are customer friendly and which are not.
Do a quick Google search to see what other people are saying about the insurance companies you are considering.
Step 3: Check your financial situation. Look at the financial position of various insurance companies.
It is important to find an insurance company that is in good financial standing, otherwise they will not be able to provide you with the coverage you need.
Visit JD Power to see how the companies of your choice are doing.
Part 3 of 3: Get and Compare Auto Insurance Quotes
Step 1: Get insurance quotes. Go to the websites of both large and small insurance companies. Use the insurance quotes portion of their page to request a quote for your insurance needs.
After a few days, you should receive an offer by mail or email.
If you would like a faster response or ask questions about insurance policies, please call or visit your local insurance offices.
- FunctionsA: When you request an insurance quote, have basic vehicle information on hand, as well as the names and dates of birth of any drivers you would like to insure on the vehicle.
Step 2: Ask for discounts. Ask each insurance company if you are eligible for any discounts.
Most insurance companies offer numerous discounts. You can get a discount for having a perfect driving record, for having safety features in your car, or for home or life insurance from the same provider.
Ask each insurance company if they have discounts available to see if you qualify for any of them.
Step 3: Negotiate the best price. Once you have several insurance offers, find the best options and negotiate the best price.
FunctionsA: Use the quotes you get from different companies to try and get the best price from a competitor.
FunctionsA: Don't be afraid to tell your provider that you can't consider their insurance company unless they lower their prices. They may say no, in which case you can choose one of the better priced options, but they may also drop their prices substantially to try and get your business.
Step 4: Choose a plan. After receiving all the final quotes from various insurance companies, choose the policy and company that best suits your needs, your car and your budget.
Choosing an insurance company and policy doesn't have to be difficult. Follow these steps and you'll easily find the plan and provider that's right for you.
