Important Tips to Remember When Purchasing Auto Insurance

Shopping for auto insurance coverage can be complicated because there are so many variables to consider. These buying tips for car insurance can help you find a policy that aligns with your budget and alleviates potential stress.

  • Potential Discounts

    Qualifying for discounts can help lower your premium. You may qualify for a discount if you practice safe driving habits, install safety features on your vehicle and bundle your home and auto insurance. Keep in mind that some states do not offer a lot of discounts, so it is recommended that you speak with your insurance provider to see what you may qualify for.

  • Insurance Variables

    The policy underwriting and rating help determine your auto insurance rate. The underwriting is a sign of how much the carrier is willing to take on. Your application will be grouped with others with similar risks before a decision is made. If your application is accepted, the policy rating will include a price based on what the insurer believes it will cost to cover potential claims.

    While every carrier has its own rating system, claims frequency is a common variable. If an insured event frequently occurs within your group, your premiums may rise if you share similar traits. Some of the variables insurers look at that may impact your rates include your driving record, geographic location, marital status, age, and vehicle use.

  • Optional Coverage

    One of the key buying tips for car insurance is inquiring about optional coverage. While you are legally required to purchase liability insurance, you can determine whether collision and comprehensive coverage align with your budget. Collision coverage protects your vehicle if it is damaged due to an impact with another car.

    Comprehensive coverage protects you if your car is stolen or damaged due to severe weather. Collision coverage is a little more expensive than comprehensive, though both are optional. You can also add special coverage to your policy, such as emergency towing and rental reimbursement.

  • Shopping for Multiple Quotes

    It is recommended that you inquire about premium quotations. Try to provide the same information to each carrier. They may ask you to describe your vehicle, its use, and whether there are other drivers at your address.

  • Shopping Resources

    The local newspaper may list different auto insurance carriers in your area. Perhaps your friend and family may recommend someone. You’re also free to check consumer groups, publications, and the state insurance department. The state insurance department provides a wealth of information from an unbiased source.

  • Compare the Systems

    States either use a no-fault system or a tort system. The system that your state uses depends on the type of insurance available to you. Coverages vary under a no-fault system. However, your insurer will directly reimburse you for losses, regardless of who caused the damages. Tort systems offer multiple coverages, including liability insurance and uninsured motorist coverage, irrespective of who is at fault. Check with your insurer to see what type of system they use.

Consult with Family Financial Insurance Group

It’s also recommended that you read over your policy carefully and ask questions if you need further clarification on an issue. Our team at Family Financial Insurance Group can assist you if you have any questions regarding your car insurance.

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