8 Important Keys to Buying Auto Owners Insurance

Buying auto owners insurance is fairly easy. You can simply call up of the first auto insurance companies that comes to mind and purchase a policy. However, car insurance is a regular expense in your budget, and for many people, it is a rather large expense. Try our FREE quote comparison tool today by simply entering your ZIP!

More than that, being properly insured can save you from having to pay more money than is necessary out-of-pocket if you have an accident. Because of this, buying auto insurance is not something that should be done hastily. Instead, consider these eight important keys for buying auto insurance.

1. Educate Yourself

The first thing all drivers should do before shopping for auto insurance rates is spend some time educating themselves about auto insurance in general. The insurance industry uses a lot of jargon that some people find confusing. Be sure you understand the difference between a deductible, a premium and coverage.

Take time to learn what liability, comprehensive and collision insurance cover. You cannot know what your coverage needs are or what you are buying if you don’t understand the terminology. You can ask your current auto insurance agent any questions you have, but the Internet is also a great resource to turn to.

2. Determine Your Needs

Once you understand auto insurance a little more, then determine what your own needs are when it comes to coverage. Many people are paying for more insurance than they need, but others are grossly uninsured.

Being insured puts you at greater risk for paying a significant amount of money out-of-pocket if you have an accident.

Take time to learn what your state’s auto insurance requirements are and if your lender has auto insurance requirements. Consider what your costs would be if you had an accident and had to replace or repair your vehicle on your own. If you cannot afford to do that, consider purchasing collision or comprehensive insurance along with a liability insurance policy.

3. Review Your Budget

Auto insurance is designed save you money in the long run. It will pay for your accident-related expenses, or for other claims like fire or theft if your coverage includes these events. However, buying more insurance coverage now will cause you to pay a higher premium.

Consider first determining your coverage needs, and then determine what your budget for cheap auto insurance is. When getting auto insurance quotes, get quotes for the coverage you need. Then try to find ways to cut down the cost of auto insurance without reducing coverage.

4. Estimate Rates

Once you have determined your needs and your budget for car insurance, you are then ready to start shopping for the most affordable auto insurance. There are many different ways that you can shop for rates, and these include:

• Getting online quotes directly from the auto insurance companies’ websites
• Getting quotes from an auto insurance broker
• Calling an auto insurance company directly for a rate quote

Each of these options can take time and effort on your part. Further, unless you contact each and every auto insurance company, you will not know if you have found the best rates available to you.

One step to take before shopping for rates that has proved useful to many drivers is to get a rate estimate from a rate comparison website. There are several comparison sites available to use. They take very little time and effort to use, and some require you to only enter your zip code into the rate request form to receive many rate estimates back. This information can help you to narrow down the scope of your shopping efforts.

5. Shop for Rates

Using a rate comparison website is a great way to save time and effort while shopping for rates. After getting rate estimates, you will then know which of the auto insurance companies may offer you the most affordable rates. So you only will have to get rate quotes from two or three companies rather than eight, ten or more.

You can request rate quotes online, and this can be done any time of day or night. However, in order to find the best rates, it may be necessary to speak with a representative at the auto insurance company. By speaking with a representative, you can explore options for savings and discounts in more detail.

6. Take Advantage of Discounts and Savings

A car insurance company will be able to provide you with a rate after reviewing some basic information from you. This information may include:

• Where you live
• Details about your car including the VIN, make, model and year
• Your driving history
• Your requested coverage and deductible amounts

While providing this information to an insurance agent may yield a rate quote, you may be able to apply discounts and other forms of savings to your quote to lower your premium. First, consider asking the representative about the company’s discounts. To qualify for some discounts, you may need to move your homeowner’s or life insurance policy to the company, or you may need to take a driver’s safety course.

In addition to discounts, you may also be able to save money on your premium by increasing your deductible. Request quotes from the representative for your premium with different deductible amounts.

7. Look for Future Discounts and Savings

Auto insurance is something that you will need to pay for as long as you own and drive a vehicle. Buying an affordable policy that provides you with the coverage you need now is important. However, you can also consider options for future savings when shopping for rates today.

Some companies provide their policy holders with loyalty discounts. These auto insurance discounts may include a discount when you renew policy, savings on the deductible if you do not file a claim within the next calendar year and more. These savings and discounts should be considered, as they can help you save money on your insurance in the future.

8. Plan to Shop for Rates Soon

Insurance companies regularly adjust their rates. In addition, factors that contribute to your rates like where you live, the value of your vehicle, your driving history and more will change with time. Some experts advise drivers to shop for rates approximately every six to twelve months in order to avoid paying more than necessary for coverage.

Consider scheduling this task on your calendar about six to twelve months in the future, as it may help you to identify opportunities to save even more on your car insurance. Enter your ZIP on our homepage to compare quotes for FREE!

While you can buy insurance from the first car insurance company that pops into mind, you may be able to save a considerable amount of money while ensuring you have coverage you really need when you follow these eight steps.