Getting Car Insurance: 4 Steps to Take
Here are some steps to take if you’re in the process of seeking out a new car insurance policy.
1. Research How Much Coverage You Want––or Need
At the very least, you’ll need to purchase enough coverage to meet the minimum liability insurance requirements in your state. But if you lease your car or have an outstanding auto loan, you’ll also need to purchase full-coverage insurance, which includes collision insurance and comprehensive coverage.
You might also choose to purchase other types of coverage. It’s wise to purchase uninsured and underinsured motorist coverage since about one in eight drivers doesn’t have insurance coverage. You can also create a more robust policy by adding riders, such as roadside assistance or new car replacement coverage.
And finally, you’ll want to choose the appropriate deductible for your auto insurance policy. A higher deductible means lower premiums, and vice versa. Whatever amount of money you choose, you should ensure you have enough stashed away in an emergency fund to pay your portion of the financial responsibility.
2. Compare Car Insurance Quotes
Every insurance company is going to weigh individual information, such as your credit score and driving history, a little differently. And some will offer more attractive car insurance discounts than others. That’s why it’s a good idea to compare car insurance premiums from multiple providers.
Getting a Quote through the Internet
Most insurance company websites have an online quote tool that you can use to estimate your car insurance costs. But you can save time and money by using Insurify to compare customized quotes from multiple car insurance companies in one place. You’ll be able to see results from large insurers like GEICO and State Farm in addition to smaller local companies, and you’ll only need to enter your information one time. It’s the easiest way to save money on car insurance.
Getting a Quote over the Phone
While most insurance companies offer online quotes, some people prefer to talk to an insurance agent. Most insurers give you the option of speaking with an agent. When you call, you should have certain information ready to go, such as:
Driver’s license numbers for all drivers on the policy
Social Security numbers for all drivers on the policy
Your car’s VIN number
Information about your last car insurance policy
You’ll also need to provide your occupation, the number of miles you drive, details about moving violations and at- fault accidents, and other individual information that will affect your car insurance rates.
Getting a Quote in Person
Some insurance companies have physical locations you can visit to get a quote in person. You’ll need to bring the required information with you to get an accurate quote.
3. Negotiate with Your Potential Insurer
Once you get your quote, you should ask your potential insurer about any discounts you may be eligible for. For example, ask about safe driving discounts, anti-theft device discounts, discounts for teen drivers with good grades, safety feature discounts, and discounts for bundling your auto policy with your homeowners insurance, life insurance, or renters insurance.
4. Finalize Your New Policy and Cancel Your Old Plan
To finalize your policy, you’ll need to pay your premium. You can usually save money by paying for the entire year up front. Make sure your new policy is in force before you cancel your old plan, or you’ll have a lapse in coverage, which can raise your insurance rates. When you’re ready to cancel your old policy, you’ll typically need to call your insurance agent.