How to Buy Auto Insurance
So, you're buying a new car. You've got the loan finalized and the new car picked out. But in all the excitement of purchasing a new vehicle, be careful not to forget about the most important part of owning a car - the car insurance.
The law requires that everyone driving on the road maintains a minimum amount of auto insurance coverage. However, shopping for car insurance might seem daunting: How do you know how much coverage is enough? How can you find the most affordable monthly premium?
Fortunately, there are some simple steps you can take when purchasing auto insurance to ensure you get the best policy for you and your car.
Finding Affordable Car Insurance
To find an affordable car insurance policy, the best thing you can do is shop around. Collect as many rate quotes as possible so you can compare them and find the best policy to match your financial needs. It is important to note that when you are shopping for car insurance cover, make sure you are as honest as possible - if you got a speeding ticket recently, the insurance company will find out and your rate will most likely go up.
Car Insurance Discounts
Today, insurance companies offer a wide range of discounts that help to bring down monthly auto insurance premiums. Here are the most common:
- Safe Driver Discount: While drivers with moving vehicle violations on their records end up paying more for their auto insurance, drivers with clean driving records often can receive discounts on their insurance rates.
- Low-Mileage Discount: Some insurance companies offer discounts to drivers who drive less than 10,000 miles per year.
- Defensive Driving Discount: Some states allow insurance companies to offer discounts to policy holders who complete an approved defensive driving course.
- Anti-Theft/Safety Device Discount: If your car includes a car alarm, a special tracking system like Lo-Jack, airbags or anti-lock brakes, you often can get discounts on your car insurance premium.
- Multiple Policy Discount: You often can get a discount on your insurance rates by combining your car insurance policy and your home insurance policy with the same insurance company.
Auto Insurance Coverage Options
When shopping for car insurance, there are several options you'll need to consider, some of which are required depending on your state. Here are the most common auto insurance coverage options:
- Bodily Injury: This option covers the policy holder from legal claims made by other drivers for their injuries if you were found at fault for the accident.
- Liability: This option covers any property damage that might have caused. This option can sometimes be included under Bodily Injury.
- Collision: This option covers any damage to your vehicle that is caused by another car or a stationary object, like a telephone pole or tree.
- Comprehensive: This option covers any damage to your vehicle that is caused by non-vehicular incidents like fire, theft, vandalism or hitting an animal.
- Uninsured or Underinsured Motorist Coverage: This option protects the policy holder in cases in which an accident is caused by a driver without insurance.
- Personal Injury Protection/Medical Coverage: This option covers certain medical expenses for those injured in a crash. This coverage option is not available in some states.
