Shopping for insurance can be overwhelming. When sales representatives are bombarding you with terms of coverage and policy information, being discerning becomes difficult and it can be tempting to sign without looking. This article gives you 6 steps you can follow to help you make an informed decision on which auto insurance to buy.
Look Up Your State’s Minimum Insurance Requirements
All states have their own requirements for auto insurance. Even if you’re not interested in getting insured, you should at least be covered for the minimum requirements specified by your state. Once you determine what your state’s auto insurance requirements are, you’ll have a baseline idea of how much coverage you should get for yourself.
Review Your Driving Record
Your driving experience and history are good indicators of how much auto insurance coverage you need. If you’re an experienced driver with no previous record of traffic violations or major accidents, insurance agents may recommend basic coverage if you can’t afford extra coverage.
If you’re a relatively new driver or if you have a record, you may have a higher risk of committing traffic mistakes and being involved in a car accident. In this case, it would make sense for you to consider more substantial insurance coverage.
Evaluate Your Financial Situation
Getting extra insurance coverage is good, but only if you can afford it. Examine your expenses from month to month and determine whether you can incorporate premium payments into your budget.
Once you figure out how much of your budget you can allocate for auto insurance, you can communicate this with your insurance agent. They may try and upsell you for coverage that you may not actually need, so you need to be firm and stick to your limit.
Get Quotes From Insurers And Ask About Discounts
Don’t settle for the first insurance company you talk to. It’s worth your while to shop around for better deals. You may also want to communicate to insurance agents that you’re getting quotes from other companies. This could incentivize insurance agents to offer you better premium rates.
You should also always ask if they have discounts available. In doing so, your insurance agent may offer up more information on how you can save on premiums by cutting down on less important coverage.
Once you’re done with getting quotes from multiple insurance companies, it’s time to shortlist the offers that suit you best. Though it may be tempting, don’t automatically go for the cheapest offer.
You should first take into consideration the level of coverage you need as a driver, then find the insurance offers that match those needs. Among your shortlisted offers, pick the one that best fits your budget.
Assess The Insurance Company’s Reputation
Once you’ve identified the insurance package you want to go with, you should do some research on the insurance provider. Look up their company profile online and read customers’ reviews. Specifically, watch out for feedback regarding the provider’s customer service and performance in fulfilling insurance claims. This will help you judge whether you’ve found the right insurance provider.
Review The Policy Before Signing
When you’ve decided to sign with an insurance provider, read through your insurance policy carefully before finalizing. You’d want to make sure that the coverage and premium rate indicated in the policy matches your quote. You can also clarify terms regarding insurance claims with your agent.
If you need further guidance on auto insurance coverage, contact the Panorama team for their expert advice.