Because most states require car insurance, you must select a policy that best fits your needs. Rather than choosing the cheapest rate or the most popular insurance company, it’s crucial to shop around and compare auto insurance rates from various companies and brokers.
However, there are a few things you should watch out for when comparing car insurance rates. Before we discuss those, let’s review car insurance basics.
Car Insurance Basics
Auto insurance is an agreement between you and the insurance company where you agree to pay a certain amount each month in exchange for financial protection should your vehicle be involved in an accident or theft. Generally, auto insurance covers the following:
- Liability: Covers any damages or bodily injury that you cause.
- Property: Provides financial coverage should your vehicle become damaged or stolen.
- Medical: Covers expenses for medical injuries that occurred because of an accident.
When you purchase auto insurance, it’s important to note that the minimum amount of insurance mandated by the state only covers damages that your vehicle causes. Should you want to insure your vehicle, you’ll want to purchase optional coverage. Typically, the following types of insurance provide financial protection for your vehicle:
- Comprehensive: Provides coverage for damages that occur from something other than an accident, such as vandalism, theft, fire, flood, and more.
- Collision: Should you collide with another motorist or object, collision coverage will reimburse you.
- Glass coverage: Some policies provide financial coverage for damage that occurs to your windshield or side or rear windows.
5 Things to Look for When Comparing Auto Insurance
As you compare car insurance rates from various brokers and companies, there are a few things you’ll want to look for, including:
- Determine How Much Insurance Your State Mandates
Before you purchase a policy, carefully read through your state’s requirements. Every state has a different minimum requirement that you’ll want to ensure you’re meeting. Additionally, understanding your state’s requirements will prevent you from overpaying for a policy.
- Pay Only for What You Need
Once you’ve determined how much insurance your state requires, you can more accurately determine how much you need. The amount of coverage you end up paying for will depend on your personal preference. If you drive a more expensive vehicle, have multiple cars, or have a poor driving record, you’ll need more insurance. Remember, collision and comprehensive coverage are optional, so you’ll have to purchase those separately.
- Ask about Discounts
There are several auto insurance discounts available that will lower your monthly premium. As you compare car insurance rates, make sure you’ve applied any discounts you may qualify for. Ensure you ask about these when talking to representatives.
- Check Company or Broker Information
As you’re shopping around, pay attention to the history of the company and its customer satisfaction rate. What do their customers say about their experience? Are their representatives friendly and responsive? What is the claims process like? You’ll want to ensure you choose an insurance company or broker that is responsive, experienced, and licensed.
- Know What Factors Affect Your Rate
Many factors affect how much you’ll pay for insurance each month. These usually include age, marital status, location, type of vehicle you’re driving, and your driving record. As you’re comparing auto insurance, make sure you understand how each of these factors affects your monthly rate. Some companies will charge younger drivers or drivers with a bad driving background a higher amount.
Protect Your Vehicle with Miller & Associates
Let Miller & Associates take some of the work out of comparing car insurance rates. Our representatives will help you find auto insurance that fits your personal needs and your state’s requirements. We’re proud to provide a variety of services in Utah, Texas, and Arizona. Contact a Miller & Associates representative today to find your perfect auto insurance policy.