Automobile insurance companies usually lure customers, offering the lowest rates and cheapest insurance in the market. While car owners, especially new car owners will be enthusiastic about getting auto insurance, it is advised that some important factors be considered to ensure that the chosen insurance is actually affordable.
It is also advised that car owners should be careful in the selection of coverage and features that make up the insurance. This is so, to ensure the insured has better control over rates. It is equally important to find an insurance company that offers good rates without comprising quality service delivery. Car owners are advised to compare different auto insurance quotes and their respective coverage before choosing a particular one.
A good place to start is to be abreast of the laws regarding auto insurance coverage in your state. While auto insurance is compulsory in most states in the U.S., each state has laws guiding the basic minimum coverage that every car owner or driver should carry to drive on the road. Therefore, it is important to know the minimum requirements and subsequently devise a plan that meets these requirements as well as covering other risks.
The factors to be considered will include the model of the car; distance traveled, your driving record, and the number of persons using the car, amongst others. It is also important to consider other road users and the kind of coverage usually carried by other drivers.
It is also important to note that buying the minimum coverage required by the State only ensures that you get protected if you are not found wanting in a car accident. Therefore, it is advised that you purchase coverage that is adequate and is above the minimum requirement, ensuring that you and the other driver are protected in the event of an accident.
This is another important factor that should be considered when buying auto insurance. Knowing the present value of your car puts you in a better position to negotiate with your insurer. Insurance quotes vary depending on the car model, with newer models costing more than their older counterparts.
The premiums charged on cars also vary based on the safety and security features of the cars. Basically, cars that are considered safer usually attract lower premiums as they are considered lower risk, compared to cars with little or no safety features.
Types of Coverage to never ignore
There are types of coverage that should not be ignored by car owners depending on the age of the car and specific requirements of the owner. Comprehensive, PIP, collision, and Uninsured/Underinsured Motorist should all be considered when taking out auto insurance.
The ideal thing is to ignore taking collision coverage once the car is over 8 years old. Comprehensive coverage should also be dropped once the car is over 10 years old. This is only logical as any claim made by the insurer at this stage will be significantly lower after factors such as deductibles and depreciation are considered.
PIP is compulsory in most states. The same applies to Uninsured/Underinsured Motorist coverage, and car owners are advised to keep on their policies, as this comes in handy in the event of a hit and run accident.
Reputation of the insurer
It is of great importance to consider the reputation of the insurance company. Doing a background check on the financial strength and reputation of the insurer gives you the track record of the company.
It is not enough to check for auto insurance online, as the internet should also be used in checking the testimonials of past and present clients. You do not want to go with a company that looks for every reason to shortchange you on your insurance claim.
Some insurance companies offer other benefits that make their insurance coverage more affordable. These benefits are sometimes offered in place of discounts, and some of them include 24/7 insurance claim hotline, lifetime car repair guarantee, first accident forgiveness and waiver of the deductible for a ‘Not at Fault’ Accident.
These benefits add up to save you money in the long run, making the offer even more affordable than popularly acclaimed cheap auto insurance.
It is worth remembering that the affordability of auto insurance goes beyond the face offer from the insurance company.