Finding an appropriate auto policy requires more than simply comparing prices. Make sure it suits both your needs and budget, with particular emphasis placed upon coverages that provide added protection in case of an accident.
Select an insurer with a strong track record for customer service, claims handling and financial security. Conduct an internet search of recent mentions about them as well as verify their financial standing with your state insurance department.
Coverage
Insurance policies can provide crucial protection from damage or injuries suffered in an accident. They also help mitigate financial losses should your vehicle become stolen. Therefore, it is vital that you understand the various types of coverage available and review it regularly; having sufficient protection could save thousands after an incident.
Liability coverage is the cornerstone of auto insurance, covering damages to other people’s cars and property as well as medical bills for injuries caused by an accident you cause. Unfortunately, state minimum requirements often don’t cover serious accidents adequately; many opt to increase their limits. Other coverages available to purchase include collision and comprehensive policies which pay to repair or replace damage done to their own car by accidents, theft, fire or natural disaster.
When purchasing car insurance, make sure to compare quotes from multiple companies and verify your personal details are correct. Also note any discounts that might apply. Finally, contact your state’s department of insurance to ensure both company and agent are licensed there; additionally make sure your broker or agent doesn’t charge an extra commission fee in addition to premium fees.
Be sure to read your entire policy, from Declarations page and endorsements through to cancellation and transition provisions, carefully. If anything is unclear to you, ask an agent, broker, or the insurance company for an explanation.
Liability
Liability coverage in your policy provides payments on your behalf if an accident causes injury or death to other people or damage to their property, making sure that if sued about an incident your legal defense costs are covered as well. Choosing an adequate limit policy with adequate liability protection limits is key when buying car insurance, so always select one with adequate limits! It also pays for legal defense in case an incident happens at work requiring legal defense costs being covered as part of this coverage.
In some states, legal defense is provided at no extra cost beyond your chosen liability limit. Your agent should be able to explain all the available coverage types and assist in selecting those best suited to meet your individual needs.
When purchasing car insurance, make sure to compare quotes from multiple sources before making your choice. Unbiased information about auto policies is usually available from state insurance departments, online resources and consumer groups; some states even publish premium comparison tables to make searching for coverage easier.
Once you’ve selected a policy that meets your needs, read it thoroughly to make sure you fully comprehend all its terms and conditions. If there are any queries about anything within it, contact the company and seek clarification via either letter or phone call. Also send any changes via certified mail with return receipt requested so as to prove you received them in time.
Medical Payments
Medical Payments, or Med Pay, covers accident-related bodily injury expenses for you and your passengers (though some states only require personal injury protection instead). While Med Pay may be optional, it could help lower out-of-pocket costs. Furthermore, considering purchasing it may also make sense if your health insurer doesn’t cover much of what comes from accidents; or if driving for ridesharing services like Uber and Lyft requires extra rideshare coverage.
DeLong recommends when searching for an insurer, it is best to look for one with an easy claims process, an intuitive mobile app and flexible customer service hours as well as being able to obtain quotes online. In addition, make sure it has an adequate financial stability rating and meets state licensing requirements before making your selection.
Before choosing any policy, be sure to inquire whether any discounts may apply. Some companies provide drivers who complete driver education courses or maintain clean driving records with discounts; you might also get one by being part of certain clubs or employers or by paying upfront premiums.
Review your policy annually and adjust as necessary, particularly after experiencing major life changes like marriage, divorce, moving homes or states, adding or removing drivers, changing commute distances etc.
Property Damage
Property damage liability coverage on an auto policy protects against damage done to other people’s cars and structures such as fences or lampposts. Limits vary by state law; therefore it’s essential to familiarize yourself with its requirements (for instance the Insurance Information Institute is an excellent resource) before choosing an adequate level of property damage liability for yourself and choosing appropriate limits in accordance with your unique situation. Typically speaking, enough property damage liability should exist to safeguard financial assets, with additional coverage such as comprehensive and collision policies being needed if an accident happens on your own vehicle.
Always gather quotes from multiple insurers in order to make an accurate comparison, taking into account coverages, limits, deductible amounts and vehicle(s) covered in each quote. Furthermore, take note of each insurer’s financial stability ratings and customer service reviews prior to making your selection.
An experienced independent agent can assist in finding the best policy to fit both your needs and budget. They will provide a detailed breakdown of coverages and costs, such as how your chosen limit works to help determine if it meets your circumstances. When selecting an agent, be sure to confirm their license to sell insurance in your state.
