It seems the choices for buying anything these days are confusing, including how to buy auto insurance. When you walk into a grocery store even the selection of breakfast cereal can seem overwhelming. It seems every product or service these days comes with too many available options, choices and price tags attached.
So many terms get thrown around when it comes to your auto insurance policy. Trying to make sense of your options, what would be best for you and what you can afford, seems like a daunting task. Even just making sure you meet the minimum requirements of your state has to be taken into consideration. If you have a financed or leased vehicle, there is another set of rules and minimum guidelines to meet. Before your head starts to spin from it all, just take a moment to review some basics and you will find the guide to how to buy insurance isn’t as tricky as it seems.
- What Are My Minimums? The most important details to cover with your auto insurance policy are to meet the mandated requirements for your state and financial lender. Almost every state equires a minimum amount of even liability car insurance for you to get behind the wheel as a legal driver. Driving without this puts you at risk financially and legally. If you have a financed or leased vehicle, you must also meet the requirements put in place by the lending company. Failure to do so could lead to financial penalties tacked on to the end of your loan.
- Do I Need More than Liability? Liability is a popular choice for those drivers looking for cheap car insurance coverage. This policy covers your basic legal requirements and expenses you could have for other drivers in the event of an accident in which you are deemed the at fault driver. It is only enough coverage in cases where your vehicle would not be valued at much, and repairing or replacing the car yourself would be as affordable as keeping up with full coverage payments. If you do not have health insurance, though, getting car insurance that does not cover your medical expenses resulting from a wreck could be an expensive and risky gamble to take.
- What Kind of Discounts Can I Get? This of course varies depending on the car insurance provider you go with. Getting quotes as one of your how to buy auto insurance steps can help you compare premiums. Comparing premiums is one of the best ways to make sure you get the affordable rates you deserve. Aside from that, there are some things that can help you lower costs for premiums and you can use these when comparing rates. Keep in mind the lower the deductible the higher the rates. If you can realistically manage a higher deductible, you will see a sizable drop in your premiums. Those who have kept a clean driving record, are married, over the age of 25 or have taken driving courses will see better deals on their car insurance rates.
- Should I Pay Monthly or Annually? Your budget and finances are your business and that is the bottom line. However, if you are seeking ways to make your car insurance policy more affordable you should get quotes from policy providers based on different types of payment plans. If you pay annually or even quarterly, your rates will be lower than if you opt to pay every month. You should also look into putting down a higher amount for your down payment when opening a new policy. This will avoid having this down payment tacked onto your premiums and making those higher in the long run. Finally check for discounts by using options such as setting your bill up to automatically come out of your credit card, savings or checking account funds. Most car insurance policy providers offer paperless discounts when it comes to your policy.
While there are plenty of other things drivers should know when it comes to a new car insurance policy, these are some good questions to start with. To get started finding your best rates just use your zip code and let the rates come to you. Remember, buying auto insurance does not have to be confusing or expensive.