It’s amazing how much auto insurance prices differ from one company to the next. You could save hundreds of dollars a year by spending just a few minutes shopping rates. Here’s how to compare auto insurance policies to get the best price.
Understand Coverages
Understand the basic coverages so you know what you need:
* Liability coverage – This pays the medical bills and lost wages for people you hurt in an accident, and pays to repair or replace their car(s).
* Collision coverage – This pays to repair or replace your car after it’s been damaged in an accident.
* Comprehensive coverage – This pays to repair or replace your car after it’s been damaged by fire, vandalism, or acts or nature.
* Personal injury protection – This pays for your and your passenger’s medical expenses when you’re involved in an accident.
* Uninsured motorist coverage – This pays to repair or replace your car after it’s been hit by an uninsured, underinsured, or hit-and-run driver.
Go Online
A few years ago the only option you had for shopping auto insurance rates was to call or visit one agency after another, and fill out form after form to get enough quotes to compare.
Now, thanks to the Internet and the advent of insurance comparison websites, you can go to one site, fill out one simple form, and get multiple quotes from A-rated companies. These sites are free to use, and you won’t have to contend with an agent trying to sell you his or her company’s policy.
On the best comparison sites you can even talk with an insurance expert who can answer any question you may have and help you get the best policy for your needs at the best price. (See link below.)
Compare Prices
After you receive your quotes, you need to compare prices. Make sure you’re comparing apples to apples by checking to see that the policies you’re comparing have the same types of coverage, and the same amount of coverage.
Raise Your Deductible
The deductible is what you pay toward a claim before your insurer will pay. The higher the deductible, the lower your premium. For example, raising your deductible from $250 to $1,000 could cut your premium in half.
Ask For Discounts
Auto insurance companies offer a variety of discounts – security and safety feature discounts, multiple policy discounts, safe driver discounts, low mileage discounts, senior discounts, etc. Ask your insurer what discounts you’re eligible for and include them in your policy.
