The first thing you should decide when beginning the insurance search is what kind of coverage you need. If you’re not sure what kind of coverages are available or what they do, visit our Insurance 101 article. Now, assuming you understand the policies and coverage available to you, it’s time for you to decide what kind of coverage works for you. If you have a fairly expensive car in the prime of its life, your insurance policy should show that. Collision to cover accidents and Comprehensive to cover random bad luck and theft. Don’t be foolish here, because spending a few dollars more a month could save you a vicious streak of repairs later down the road. Of course, if you have a relatively aged or inexpensive car, you probably won’t need Comprehensive since it could end up costing more than the car is worth by the time you get rid of it. If you’re in-between, consider your geography. If you’re in an area that storms a lot or has a track record of tornadoes, hail storms, hurricanes or winter blizzards, Comprehensive might be a more urgent and real option.
After you determine the coverage you need, figure out your budget. How much can you afford to pay in premiums each year? How much disposable income do you have that can go towards your deductible in the event of an accident? You have to ask and answer these questions to get your first estimated price. Also look into your credit score. Those of us with shaky credit scores are liable to higher insurance costs on account of the insurer’s fear of you defaulting. Once you spend enough time with an insurance company and you’ve paid your bills on time without gaining new debt or dirtying your driving record, you’re premiums will drop significantly because the company knows they can trust you. Now that you know your coverage needed and the price you can afford, it’s time to go hunting.
Here is the part where you gather information not on yourself, but on the various insurance agencies available. The Internet will be your bible in doing this. You can search company histories, round up free insurance quotes, compile customer reviews and ratings and ultimately bring you closer to making an informed decision. Websites like InsWeb.com provide a universal format for plugging in details about your situation and yielding out hypothetical quotes based on your input. Every state also has a Department of Insurance that you can access to research complains filed for each company you might be interested in. The big insurance companies have a good history of reliable payouts and strong customer service. They are Geico, Progressive, Liberty Mutual, State Farm, Allstate and Esurance among a few others. What you get by going with one of these companies is piece of mind. They are large enough to accommodate you and because they are so large, they have the money to compensate you (which is the whole point of insurance).
Gather your quotes and company profiles to compare and contrast them against one another. You’ll notice each company brings a different entity to the table. One might offer you lower premiums, but don’t cover everything you want, while another does the opposite. Here is the point where you look for advise from friends, family and professionals alike. Go to your favorite local auto mechanic and ask their opinion. Odds are they’ve dealt with everyone and know who gets the job done the right way. Another approach is to ask your friends and family or your co-workers. Everyone has a story to tell and you might be surprised at what you didn’t know from reading a company overview. These are the people who are in the same boat as you, already equipped with the coverage you need, who will give you valuable insight.
Once you’ve picked a company and you’ve picked your policies, don’t submit just yet. Call that company up and speak with a living, breathing agent. That is their job, to explain things you don’t understand, answer your questions and to sell their service to you. Most of these people will go the extra mile to make you feel wanted. Ask them for any deals or ways to lower your premium. A majority of Americans don’t realize that you’re insurance goes down if you take a six hour driving safety class or you hit a certain age (granted you stay out of trouble). Agents want you on their roster, so they will do what they can to entice and encourage you.
From there you should have everything pretty much covered. The only thing left to do is to sign, right? Not quiet yet. Read your policies from top to bottom. Look for loop holes and gaps that might put you at risk somewhere down the line. In particular, look out for any terms or phrases that, if you sign, gives away the right to sue in the event of a disagreement. Most reputable companies won’t bother, but it’s better to deal with it before the coverage begins than when you’re in a major accident and you’re paying your car and medical expenses. Another thing to look out for is your coverage. Are the things you need and want covered covered? Don’t skim here, not after all the work you just put in. Laziness will lead to lamenting later on.
Only after you’ve read and agree with the policy in place should you sign off on it. Once you do that, you’re covered. You can rest easy knowing if a horde of animals escape from the zoo and trample your car while you sleep, you’ll be covered with Comprehensive. If you didn’t get comprehensive, that’s alright, because you now know it wouldn’t be worth the premium and deductible to cover yourself against a zoo animal stampede. That’s the beauty of insurance, though. It covers like a canopy.
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