Car insurance is absolutely necessary if you own a vehicle that you regularly drive. No one wants to get in an accident. But in case you do, you need to be covered to make sure you are not financially hurt by things no one can predict. Here are several tips for buying a good car insurance policy:
1. Know How the Insurance Rate is Determined
Best car insurance policy is often the one with the best rates. The rating is simply an amount the insurance company determines based on your risk level. For example, if your driving record has previous violations, then you would be considered a risky driver and you’d have to pay more. Rate is based on your driving history, residential area, age, gender and vehicle type, among some other factors. To know whether you are paying a reasonable rate based on these, you need to know how the insurance rate is determined. Each insurer has their own policy. You should read the material provided by the insurer, and also ask probing questions to understand the process.
2. Avoid Paying Higher Rates Following Bankruptcy
A lot of insurers charge high-risk rates from drivers who have declared bankruptcy in the past. You can avoid these sky-high quotas if you know where to look. Get your car insurance from a specialist insurer who provides affordable rates for people with debt or bankruptcy issues. It’s best to get help from an Atlanta bankruptcy lawyer to make sure you are not going to get scammed and that all your interests are covered.
3. Understand the State System
Depending on the state, car insurance is provided in two forms: tort system and no-fault system. You will get different types of insurance policies under each system. You will have to do further research on which type of policy to buy under each system to suit your needs best.
4. Take Advantage of “Better Risk” Discounts
The insurance company may consider you a lower risk driver if you meet certain criteria. If you own multiple vehicles, have taken driving education lessons or have your car secured with anti-theft gadgets, for example, you will fall into this “better risk” category. There are discounts offered for drivers in this category that you may be able to benefit from. Don’t forget to ask the insurance agent if you are eligible for any.
5. Do Look into Optional Coverage
In addition to the basic insurance package, you may be able to benefit from optional policies like collision coverage and comprehensive coverage. Collision coverage can be expensive, but it pays if your car ends up hitting a tree or a signpost. Comprehensive coverage pays if your car is damaged due to causes like the weather, fire or vandalism. The optional coverage policies include rental reimbursement, foreign travel and towing fees. If you think you can benefit from these, optional policies should be considered as well.
6. Compare Products
Like with any other product, don’t buy the first insurance policy you see. Do your research and compare as many different policies as you can. It’s easier to do online now. When you get quotes from multiple companies, make sure you are providing the same information to everyone to make comparison possible.
7 Get Information from Unbiased Sources
Rather than believing in marketing material, which are often exaggerated, get your information about car insurance from unbiased sources like consumer rights websites, your state’s insurance department and publications not related to any insurance company.
Last but not least, read the insurance policy very carefully before you buy it. Keep in mind that it’s a legal contract. If you don’t understand some of the terms, you should ask your lawyer to explain it to you.