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A Guide on How to Compare Auto Insurance
For first-time drivers, shopping for auto insurance can be somewhat intimidating and confusing. The terms themselves seem to belong to another language. With this guide, however, you’ll be able to successfully compare auto insurance and end up with the ideal policy for you.
APPLES TO APPLES
The first rule in auto insurance shopping is making sure that you are comparing rates that belong to the same insurance category. If you commit the mistake of making apple-to-orange comparisons, you’ll end up with inaccurate rates and maybe even an unsuitable auto insurance policy.
KNOW THE TERMS
Terms as mentioned above can be quite indecipherable and may lead you to choose an auto insurance policy that you don’t really need. To prevent this from happening, know what those terms mean before comparing rates. A short glossary of terms is provided below.
Body Injury and Liability Insurance – Taking out this type of insurance is a good decision if you have reasons to believe that there’s a very strong possibility you’re going to be involved in future accident…by your own fault. This policy will cover your defense costs and other expenses due to the injuries you’ve cost to the other party.
Collision Insurance – This is the genie you need when you end up hitting any unmovable structure like trees or buildings and – once again – by your own fault.
Comprehensive Coverage Insurance – If you’re the type who wishes to be protected from any potential harm, you definitely need comprehensive coverage. This insurance is your all-in-one protection and will keep you financially safe from fire, theft, vandalism et al.
USE A REPUTABLE WEBSITE
Although many websites offer instant comparison of auto insurance quotes, you’ll be better off with websites like GEICO because you can trust them to give you accurate results.
ASK FOR DISCOUNTS
When comparing auto insurance policies, you should always remember to ask for possible discounts that they can offer. Companies may have varying requirements for an individual to avail of discounts. It’s best that you compare discounts and requirements then choose the policy that offers you the most discount you are qualified for.
Safety Device – Lots of auto insurance companies offer discounts if you already have safety devices installed in your auto.
Driving Safety – Do you notice how auto insurance companies seem to love the adjective “safe”? But that’s to be expected because they’re liable to pay the moment you become “unsafe” in your car. But moving on, auto insurance companies would also love to hear if you’ve taken defensive driving lessons or graduated from an accredited driving school.
Profession – If you tend to rue the day you chose teaching as a profession, this may be one of the days you’ll have a change of heart. Several companies offer discounts based on the policy holder’s profession alone so thank your lucky stars for today that you’re a teacher.
CONSIDER THE PAYMENT METHODS
Some impose inflexible rules while other auto insurance companies are known for their leniency. A number of auto insurance companies will even help you obtain financing. Choose the auto insurance policy that will ask you to pay deductibles which you can really afford.
ONE LAST AUTO INSURANCE TIP
When comparing auto insurance policies, make sure that you remove from the list insurance policies with similar coverage with your health insurance. Many individuals tend to pay double money for personal insurance. Preventing this from happening can actually lower your insurance costs as much as 40%!
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