When looking for a reliable car insurance company, it is important that you conduct a thorough research before committing to any one option. There are several factors that come into play when determining a suitable car insurance plan; and if you are an amateur car owner, then it can get trickier, as you may not be aware of all the possible options that are available to you. In order to help you make the right choice, we have put together a list of a few things that should be considered while deciding on a car insurance plan:
- Explore your options
As is the case with anything else that you buy, it is important to consider all your options before choosing a car insurance plan, and not settle for the first one that you may have come across. It is important to compare interest rates and quotes from at least three different insurance companies before arriving at a buying decision. You should also ask about running discounts at insurance companies to make sure that you get the best possible deal.
- Ask for higher deductibles
The amount that you pay for any damage done to your car before the insurance steps in is known as a deductible. Asking for higher deductibles lowers the monthly premium that you pay on your insurance.
- Find out about your state’s minimum coverage requirements
The minimum requirements for car insurance coverage significantly differ from state to state. Some states may require candidates to buy just bodily injury coverage and property damage liability coverage while others may require one to cover bodily injury coverage and property damage liability coverage along with personal injury protection and uninsured/underinsured motorist protection.
- Ignore comprehensive and collision coverage for an old car
Comprehensive coverage helps pay for damages caused due to accidents that are beyond human control, such as floods, fire, etc. Collision coverage, on the other hand, is used when your car is damaged because of a collision with another vehicle or an object. The maximum payout for a damaged/stolen car that will be available through either of the coverage plans is directly proportional to its market value. An old car may not rank too high in terms of market value and hence, may not be worth this investment.
- Ask about group insurance
Group insurance is a benefit offered by some insurance companies. You can avail of various special rates and reductions if you are covered by a group plan. Such plans can include employees, family members, alumni groups, and more.
- Pick a usage-based insurance
For those who are confident about their driving and have a good history of managing their vehicles, it can be quite beneficial to ask for a usage-based or pay-per-mile insurance program in which the insurer tracks one’s driving and offers reduction or discounts based on the number of miles the car is driven for, where it is driven, and the quality of driving, among other factors.