If you’re looking to save money while still ensuring your car is protected, shopping for auto insurance is a great idea. However, it can be overwhelming, particularly if you haven’t done it in a while.
The good news is that all you need is some basic information, a clear understanding of the coverage you need, and just a few minutes to compare quotes. By doing so, you can find the best policy for your needs and budget.
How To Buy Car Insurance Online
The first step to shopping for car insurance is to compare coverage and premium options from different companies.
1. Understand your coverage options
When purchasing car insurance, it’s important to consider your needs and circumstances. While a policy that only includes auto liability coverage may cost less, it may not be sufficient to meet your requirements.
If you’re leasing or financing your vehicle, it’s likely that your lender will require comprehensive and collision coverage.
Even if your car is fully paid off, if it’s a new model, it’s advisable to consider getting comprehensive and collision coverage to avoid paying for costly repairs out of your own pocket.
It’s essential to understand the different types of car insurance coverage available and what they offer. So, take some time to learn about common auto coverages and what “full coverage” car insurance entails.
2. Select your limits
Your car insurance limit refers to the maximum amount your insurance company will pay out for a claim. It’s important to note that you’ll have different limits for various coverage options.
While choosing your state’s minimum required coverage for liability might result in reduced rates, it may not be enough to cover your obligation to the injured party, depending on the accident.
Therefore, it’s crucial to determine the appropriate limit for other coverage options like uninsured/underinsured motorist coverage. To get an idea of how high you should set your limits, use our car insurance calculator.
3. Choose your deductible
Your car insurance deductible refers to the amount you are required to pay towards a claim before your insurance coverage begins.
Generally, deductibles apply to comprehensive, collision, and gap insurance policies. The higher your deductible amount, the lower your insurance rate will be.
However, it’s important to ensure that your deductible isn’t so high that you would have difficulty paying for repairs before your insurance takes effect.
4. Compare premium quotes
Your car insurance deductible refers to the amount you are required to pay towards a claim before your insurance coverage begins. Generally, deductibles apply to comprehensive, collision, and gap insurance policies.
The higher your deductible amount, the lower your insurance rate will be. However, it’s important to ensure that your deductible isn’t so high that you would have difficulty paying for repairs before your insurance takes effect.
When shopping for car insurance, it’s important to remember that the cheapest option may not be the best. Focus on finding a policy that meets all your needs at a fair price.
When to shop for car insurance
It is beneficial to get a quote for car insurance at least once a year, as rates tend to change frequently. In case you are paying more than what is required, you should not wait to switch to another insurance company.
When you cancel your policy with your current company, they will refund you the portion that you haven’t used yet. However, before cancelling, make sure that you are already covered by your new insurance company.
When adding a teenager to your car insurance, it is a good idea to shop around for insurance providers that offer discounts for teen drivers.
