Finding a Balance: 5 Tips to Finding the Right Amount of Auto Insurance Coverage

Knowing how much auto insurance to buy can be difficult to figure out. You want to make sure that you have enough coverage for when something happens, but at the same time you don’t want to pay an arm and a leg for coverage that you might never need to use.

There are many ways to ensure that you get great coverage and at a decent monthly premium. Taking the time to get quotes from multiple auto insurance companies will better prepare you to make a final decision that both you and your wallet will be happy with. Below are some tips to finding the right amount of insurance by finding great auto insurance discounts for your policy.  Try our FREE quote comparison tool on our homepage TODAY!!

Know your Budget and Determine your Risk

Before you begin to shop for the best auto insurance and get quotes, you need to determine how much insurance you can afford. The amount that you are able and willing to pay monthly for your car insurance policy is also dependent on how much risk you want to take. The cost of a policy varies according to the amount of coverage you include with your policy.

Typically, the more risk that you assume the lower your auto insurance premiums are going to be. As an example, choosing to get a policy with a higher deductible will result in a lower premium.

The risk is that if you do need to file a claim after an accident, you will need to be able to pay that high deductible out of your pocket. The amount of risk you are willing to take needs to be carefully considered before choosing a coverage level and deductible amount on your policy.

How Much Coverage Do you Need?

One of the first things you should to do before determining how much coverage you need is to look into your state’s mandatory minimum auto insurance requirements. Many states have their own set of rules when it comes to the amount of property damage liability and bodily injury liability that you need to carry.

Other coverage amounts that will need to be determined include collision coverage and medical payment coverage.  If you have a good health insurance plan, you can probably get away with not having the medical payments coverage added onto your plan.

Also, if you are insuring a car that is older and has little to no cash value, you will probably not benefit much from having collision coverage as well.The insurance company will only reimburse you for damages that are up to the actual cash value of your vehicle. If you have an older vehicle that is not worth much, paying this coverage could be a waste of money.

Look for Savings and Discounts

Many people do not take the time to find out if they qualify for some of the many auto insurance discounts that are available. Taking the time to talk with your insurance agent about possible discounts that you might qualify for can save you a lot of money on your policy.

One of the top discounts that is available is for safe drivers. Most insurance companies will offer great savings to those drivers who have not had any accidents in the past few years.  If you are a student, you could also get discounts by getting good grades.

By getting good grades in school, insurance companies view this as an indication that the student shows great responsibility in their lives, therefore lowering their chances of getting into accidents.There have been many studies that link a correlation between the grades that students receive and their driving habits.

Depending on certain features that your vehicle might have, you could also get discounts for some of the safety features it has. If your vehicle offers anti-lock brakes, anti-theft devices and passive restraints such as air bags, you could get extra discounts that could lead to significant savings. Also, automatic seat belts can lead to extra savings as well.

Check your Auto Insurance Rates Every Six Months

Because your situation can change, so can your car insurance rates. Every time that your affordable car insurance is up for renewal, it can be in your best interest to check your rates, your coverage options and see if you qualify for any additional discounts. Determining if you still have the best policy for your situation and budget is easy if you compare car insurance quotes online.

Shopping around at least once a year can lead to significant savings. It is especially important to shop around if you have had a major change in your driving status. One of the main examples of a significant change would be turning 25.

In most states, once a driver turns 25 years of age their car insurance premiums can drop drastically. Other changes that affect premiums include moving and adding more drivers to your policy.

Compare Auto Insurance Quotes Online

One of the most important aspects of shopping for the best auto insurance policy is choosing the right auto insurance company. Before you commit to any policy or insurance company, always research and compare auto insurance to help in your decision making.

Before choosing a company, be sure to check your state’s department of insurance website to make sure that the company has a good history and is reputable to use. Taking the time to compare car insurance quotes is the most effective way to ensure that your next policy will offer great coverage at a good price.

There are many ways to compare car insurance quotes.The first way is by calling individual insurance companies and getting quotes over the phone. Alternatively, you may also visit the insurance companies in person as well.  Enter your ZIP code into our FREE quote comparison tool and start saving BIG today!!

The quickest and easiest way to get multiple auto insurance quotes to compare is through the Internet. There are many websites that offer users the ability to input their information one time and receive quotes from different companies to compare. This is the best way to find a great policy with the right amount of coverage and at the most affordable price.