Car Insurance Comparisons: How to save money by looking at all your options
With the advent of the Internet, getting the best deal on your car insurance just couldn’t be easier. You can now compare quotes from a number of companies in just a few seconds, and you can easily get just the right coverage for your needs at a price that works for you. Using online quotes, however, can still be a frustrating experience when looking at auto insurance – you can be offered many different types of insurance at different prices, and it frequently becomes difficult to make a direct comparison between two services.
There are several things you need to think about when looking for car insurance online so that you can get the best coverage for the lowest price.
Auto Insurance Companies
Car insurance companies are the best place to start. Before you start looking for a quote, look very carefully at each company and evaluate which one of them will work best for you. Is their claims service efficient and user-friendly? What are their penalties for minor scratches and mishaps? J.D. Power’s listing of car insurance providers is the first place to begin.
Don’t underestimate the power of word of mouth advertising, too. Ask your friends and family about their experiences with auto insurance companies, and see if they will discuss how much they pay for their premiums. This will allow you to get a feel for which companies treat their customers well.
When choosing a company, make sure to pick one that can respond to a claim in a timely manner, and who has affordable rates and a variety of coverage options. If possible, you should also choose one that offers incentives or discounts for customers who make no claims from year to year.
Your Auto Insurance Premiums
Probably the most important factor in getting auto insurance is how much it will cost from month to month. Once you’ve chosen a company, make sure you know exactly how much you will need to pay so that you can budget accordingly.
When comparing car insurance, it’s vital to look at the coverage on offer and think about what you really need. You will always require your state’s minimum insurance, and most companies will offer that and more. For example, if you drive an expensive car, you will need a higher level of coverage to avoid taking a loss if anything should happen to it. If your teenage son or daughter is allowed to drive your car, you will need coverage for them too.
More coverage means more expense, and there is a fine balance between what you need versus what you can afford. Always make sure to get the insurance you think will save you the most money in the long run.
Older cars don’t require full coverage, so be sure to mention the age of your car when looking for quotes. If it’s paid for in full, you may only need to carry third party insurance – but a vehicle that’s currently financed requires full coverage so that the lender will not take a loss.
Your Auto Insurance Deductible
On one hand, a high deductible will mean a lower monthly premium and potentially more money saved. On the other hand, it means less money available for emergencies as you will have to pay the initial deductible amount before your insurance company will cover the rest. A $0 deductible could mean paying an extra $1000 a year, but it may be worth it for peace of mind.