If you’ve ever been involved in a fender bender or a car accident, you already know how important car insurance is when the time comes to pay for the car repairs. The problem often comes into play when you want to start your car insurance policy shopping and get improved coverage. There are so many different types of car insurance; your task to comparison shop can seem overwhelming.
The good news is there is a streamlined and efficient process you can use while shopping for new car insurance policies that best fit your needs. Using this streamlined process will help you determine which car insurance gives you the best coverage at the most affordable price. There are options for automobile insurance policies that offer coverage, accident forgiveness, and exclusive discounts based on your personalized information.
Read on to discover more about the many different types of car insurance policies. Each car insurance policy offers various degrees of coverage and a range of comparable quotes for you to consider.
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Tips to Find the Right Car Insurance Policy for You
Before you start deep diving into auto insurers and what the auto insurance companies offer, you need to determine which one can save you money or is best for you. These steps will include information gathering before making the rounds to ask questions about insurance coverage. Almost all companies should be able to give you an insurance cost estimate based on the information you’ve gathered.
#1 – Pull Together Relevant Personal Information
Before starting the quoting process and going online or making phone calls, you need to gather relevant data. The insurance agent will ask for your driver’s license number, marital status, current address, zip code, and all operators that will be listed on the car insurance policy.
#2 – Your Car Information
Second, only to your personal information, having the mileage of your car, the date you bought it, and your VIN number are also essential to have on hand when making calls for insurance coverage. You also need to know your car’s make, model, year manufactured, and anti-theft devices.
#3 – Past Claims and Driving History
There’s no doubt every auto insurer you speak to will need to know your driving history, especially over the past five-seven years. This will include any accidents you’ve had, tickets incurred, or violations. You can also take this time to let them know if you’ve completed any driving courses to make up for the points you incurred for a ticket.
#4 – Your Current Auto Insurer
It’s always easier to get insurance coverage if you have a car insurance policy in your name when you’re making these calls or searching online. It’s possible that an insurer won’t offer you insurance if you’re without insurance coverage history. So you want to make sure you have all of that in front of you before you commence looking for various types of car insurance.
Different Types of Car Insurance
You may already understand the premise behind car insurance coverage, providing you with bodily injury, bills for damages, and any car accident liabilities you face. When you have an accident, if you have any assets and don’t have insurance, the other person can seize those assets. It’s liability insurance and coverage that protects you and acts as a cushion between your assets and the amount that needs to be paid to the injured party from a car accident.
It’s vital when you shop car insurance you use to choose the car insurance coverage that has enough auto liability when you’re comparing car insurance quotes. In 2019 AAA found in a driving cost research study the average cost to own and operate a vehicle was $9,282. The average insurance cost for sedans they found to be $1,251.
That’s why it’s so important to understand the terms of your car insurance, including what your benefits are and who is covered every time you drive the car.
Affordable Car Insurance Coverage that Doesn’t Compromise Coverage
It almost always comes in threes, so when you see auto insurance coverage, it often looks like 50/100/50. Many insurance consumers don’t initially understand what those numbers reflect. When you’re comparing car insurance rates, you want to know the first number represents liability coverage, which includes bodily injury liability, which is also often called personal injuries.
The second number reflects total injuries or total bodily injury liability. The third number indicates property damage or physical damage liability. That means ever policy that lists as 100/500/100 means you’re receiving a car insurance quote that represents:
- $100,000 for any bodily injury to you or any person injured in the car crash
- $500,000 total for all bodily injuries from the car crash
- $100,000 for the amount that will be paid in the property damage caused by the crash which includes your car, any buildings or objects involved in the car crash
When you’re shopping around for your can insurance policy, you want to make sure the highest number, which is the middle number, is always equal or higher than the value of your home and any savings you have combined.
The Various Types of Car and Collision Insurance Coverage
Now that you know about the various types of car liability insurance ranges you may need in your car insurance. It’s essential to understand the differences between collision car insurance vs. comprehensive car insurance. Collision car insurance coverage just pays for the physical damage to your car if you get into an accident with another car or object. It doesn’t cover any other type of auto collision costs like bodily injuries.
Then you have to further break it down into Bodily Injury Liability insurance that covers just the other people you were in the accident with and their claims for damages such as medical expenses. Comprehensive Auto Coverage pays for the damage to your car from anything other than a car accident. Often this comes into play when you have a flood, or your car catches fire or is stolen.
You can even get a car insurance quote for uninsured motorist coverage that pays if you’re hit by someone who doesn’t have any auto liability insurance. It takes the place of the other driver’s liability insurance if they would have had it. However, for this policy to pay your damages, the other driver has to be at fault, and the limits of liability are lower than the damages you sustained.
Providers of Car Insurance Policies
There are many providers of various car insurance policies that offer very similar insurance products. You need to ask questions, get the answers you need to make the best decision for you and anyone else driving a commercial or personal car. You may want to speak to an insurance broker to help explain the car insurance requirements in your state.
The car policy and coverages you can get in New Hampshire may be quite different than what insurance providers can give you in Massachusetts. In almost all states, it’s a requirement to have personal injury protection, medical payments coverage, and uninsured or underinsured motorist coverage. There are some car insurance coverage exemptions and groupings sometimes that are more cost-effective for you, so make sure you ask if anything applies to you.
When you compare ABC Insurance Company auto coverage to XYZ Insurance Company auto coverage, make sure you’re asking about the same levels of liability, so you’re not comparing apples to oranges. You also want to compare the deductibles offered by the companies for collision and comprehensive coverage if that’s what you’re interested in buying.
Always use the same cars and the same drivers for those cars every time you receive a car insurance quote from an insurance provider. You also want to ask each of the car insurance companies what discounts you may be eligible for as a veteran, senior citizen, good driver, etc.
The Car Insurance Rate Comparison
It all comes down to comparing the car insurance rates for minimum and full coverage. If you have a good credit score or a safe driving record, you will get the best prices when buying car insurance. Also, you should ask about discounts insurance companies can offer you. Focus on what’s essential to you or what benefits you are looking for and then shop for lower rates.
Bundling your auto and home insurance with the same insurance carrier will offer a multi-policy discount when you combine your home with your car insurance coverage. There may also be a group or organizational membership discounts on your insurance premiums for car coverage. Some insurance companies also offer a pay in full discount if you pay your policy premium in full.
The possibilities are almost limitless. Reach out to LoPriore Insurance Agency customer service agents, and we can answer all your questions and give you the best insurance solutions for you. Bottom line the way you live your life is part of what determines what type of car insurance policy type you need.
Always assess and review your car insurance policy options and pick the one that’s the best fit for your life and loved ones. It’s that simple! Insurance to Fit Your Lifestyle
TOP 5 FAQ’s About Car Insurance Policy Shopping Checklist
Is collision coverage worth the cost?
Collision insurance is usually mandatory for drivers making payments to own or lease a vehicle. In some cases, collision is definitely worth the cost even if you own your car outright. For instance, if your car is a newer model and you plan to drive it for several years, this coverage could help you pay for major repairs caused by an accident. To determine if you’re paying more for collision than it’s worth, subtract your deductible and your annual cost of coverage from the value of your car. If the number is negative, your insurance won’t cover the cost if you total your car.
How should I choose a deductible?
Your deductible is the amount you have to pay out of pocket before your insurance pays on your claim. While a higher deductible can lead to lower premiums, it doesn’t make sense to have a deductible you can’t afford to pay. Your deductible should represent an amount you could afford to pay with your current income and budget.
Does my car insurance cover my car if it’s stolen?
Massachusetts only requires drivers to have liability insurance which does not cover the theft of your car. Comprehensive coverage is the only type that covers car theft. You probably have this type of coverage if you’re still paying off your car.
Should I contact my insurance agent before I buy a new car?
While there’s a 7 day grace period that allows you to have time to register your new car, it’s important to have proper insurance right away. When you buy a new car, it’s a good idea to give your insurance agent a call and have them add your new car to your existing policy.
What is the most common auto insurance claim?
The biggest portion of car insurance claims is related to small accidents like fender benders and rear-end collisions. Windshield damage is a common claim and so are animal collisions.
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