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Buying Auto Insurance – 10 Essential Steps

When it comes to buying auto insurance, most of us tend the believe we know all about car insurance. But the truth is that most of us often carry incomplete information and do not understand the different parts of an auto insurance policy completely. Of course, we all would like to get adequately covered and try to get the best value for money. It is seen that most of the time people are either under buying the auto insurance or overpaying for it. There are very few who actually know how to buy the best coverage.

The fast-paced lives that we lead leave most of us with very little time for comparing and buying auto insurance. After all, this is not a very enjoyable task and needs lots of thinking. We all need some tips to buying auto insurance so as to get optional coverage. But if we are serious about getting the right insurance for our vehicle, we need to follow some smart ways to cut your premiums.

Credit: trontnort
Credit: trontnort

Essential Tips to Buying Auto Insurance

1. Decide upon the coverage

The first step is to find the right amount of coverage you need for your vehicle. You will find that the terms and conditions vary from state to state. Try to get familiar with the basic insurance terminology. Once you know what you need, you can move on to the next step.

2. Break down the Car insurance

When buying auto insurance, you need to study it and you will find that is made of 6 kinds of coverage.  You need to understand each of these types of coverage. Accusing to auto insurance experts, some of the older car models may not need some of the coverage.

3. Take a look at your current Insurance Policy

Take out your current auto insurance policy and get in touch with the company agent to have a review of it. Just try to find out how much coverage you have now and how much are you paying for it.  Note down how much you are paying for the insurance monthly and yearly.

4. List out different insurers

It is essential to create a list of insurers before buying auto insurance.  You might be surprised to know that there are many insurance companies that are not even authorized to work in your state. Find only the licensed ones, you can find detailed information from the state insurance department.

5. Make comparisons

When you buy Car insurance, you will find that there are so many factors that will rule the impact the insurance rates. For example, the model of the car, the car’s engine, your driving history and age, etc. Make comparisons and be sure that you are not comparing apples and oranges here to come to the right conclusions.

6. Get competitive quotes

Now that you have a good list of insurance companies and have made the comparisons, try to get insurance rates and quotes form a couple of sources when buying auto insurance. There are several online sites where you can compare the insurance quotes and get some good ideas. But keep in mind that not every good auto insurance company list at these one-stop-shopping sites.

7. Start asking

The nest of the essential tips to buying auto insurance is to go a step further and start calling these companies. It is time to get in touch with these companies and work the phones. You can email them or call their customer care at toll-free phone number. Confirm the price and get the quotes in written form their representative.

8. Negotiate for discounts

When buying auto insurance online or making comparisons, look for discounts and special offers. Insurance companies do not shirk form giving discounts on such aspects as car’s safety, good driving record, security equipment etc. you can consider the same insurance company for getting home and other policies.

9. Look for more ways to reduce costs

Once you have settled for an insurance company when buying auto insurance, you can still look for more ways to minimize the insurance costs. One of the easiest ways is to increase your deductibles, both collision and comprehensive.  You can reduce the premium by raising your deductible.

10. Make a final review

Now that you are sure of your decisions, regarding buying auto insurance, it makes sense to go over all the points of the policy with your agent. Think if this is the best coverage that you can get. Cancel your old insurance policy with your existing insurance company if required.

Just keep in mind the above 10 tips to buying auto insurance. With time and experience, you will develop a sharper eye and will know what points to keep in mind and what questions to ask your insurance company. Assess the reliability of the insurance companies you’re considering and talk to your family and friends before making a final choice.


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