Most of us want our auto insurance to offer sufficient coverage in case of an accident. However, we often end up paying more than required due to bad insurance coverage. This is usually the case with individuals who end up overpaying because they did not spend sufficient time searching for and buying the best auto insurance.
Presented below are 7 steps to buying auto insurance:
- Check the level of coverage needed by you The first step that you have to figure out is the level of coverage required by you. The government also has certain mandatory auto insurance requirements which vary from one state to another. So check the type of coverage needed in your state.
Check your driving habits to find out the level of coverage needed. If you drive for long hours, through bad roads, and/or are prone to accidents, then you should opt for comprehensive coverage and collision coverage.
- Verify your record as a driverA bad driving record can hike up the insurance rates. Hence, check if you have any recent tickets and points accrued therein. If your points are going to vanish in a few days, then it is better for you to wait to have a cleaner driving record and then apply for auto insurance.
- Check your current auto insuranceCheck your current policy and read the all the details to get an idea about varied information that may be required. Find out the monthly and year cost of your auto insurance and then use that to get a better quote from car insurance companies, for both yearly and monthly payment options.
- Research about different companiesCheck online or call up the 1800 numbers of different auto insurance companies to know about the various policies offered by them.
Get information like complaints, licenses, financial state, etc., of the companies from the National Association of Insurance Commissioners’ Consumer Information Source or from the Department of Insurance of the State government.
Verify the monthly and annual rates for different kinds of coverage. Ensure that the coverage limit is the same for both yearly and monthly options when comparing.
Verify the payment terms such as late payment charges, missed payments, payment due dates, varied payment plans, etc.
- Get the best rates from different companiesAfter you have all required information about various insurance companies and their policies, pick up the phone and call each one of them to get the best possible quotes from the insurance officer.
Verify what kind of discounts and deals that the companies can offer you. The kind of security and safety gear in your car, the driving record, etc., can all contribute towards a better deal and more discounts.
- Cancel the old auto insurance policyCancel the old insurance policy after you have selected one which is best for you. Carry the insurance card in the car/wallet if required by the state.
- Review the T&Cs of the new policy before signing itRead up the policy and ensure that it has all the details that you were offered before signing it. Ask the insurer in case you have any questions when reading and clarify the point.