Auto insurance is a must if you plan to buy yourself a car. You simply cannot drive around without having your car insured. There are a number of reasons for it. Primarily the law requires you to get insured. Secondly, and most importantly, it is for your own good and safety. However, buying the right insurance is equally important. So here are 11 things you should know while buying auto insurance.
Minimum state requirement: –
When buying auto insurance you must know what is the minimum level of insurance that your state requires you to have. You should have at least that amount of coverage for your car. However, this minimum level is just to ensure that you are within the bounds of the law. When in need, this level does not suffice. So make sure that the amount of insurance that you get is good enough to make you get the benefit out of insurance.
If you want to save money on premiums you can opt for bigger deducible. This will lead to smaller premium payments. However, make sure that you set aside the amount of deductible so that when you get into some accident, you do not have trouble in arranging money for deductible.
Safety Discounts: –
If you want to save money on the insurance payment, you can install safety equipment and gadgets in your car which will earn you substantial discounts. Safety alarms, air bags and anti theft systems all are gadgets that help you earn discounts.
Shop around: –
Before you take the decision make sure you have taken quotes from a number of companies selling insurance. This will help you take a better decision.
Analyze your needs: –
Before talking to the insurance seller, do your own homework and figure out what sort of and how much of insurance would you require. For some people insurance just above the minimum level is enough. While for some people, for instance, those who have a new car, more travelling, live in the weather affected area insurance up to comprehensive coverage would be needed.
Bundle your policies: –
If you have to insure your home, car and yourself it is better that you buy all your policies from a single source. This will lead to great cost savings. Moreover, you would be saved from the hassle of managing different insurance sellers if all your policies are under a single umbrella.
Be honest: –
While the process of getting insurance is carried on, the seller asks you a lot of questions. It is in your best interest that you answer the questions with complete honesty. You might save a few bucks if you lie, but if you get caught you will lose much more in terms of your integrity and honesty.
Installment payment schedule:-
Instead of paying monthly or quarterly installments Gor for annual payments of auto insurance.
Seek assistance from your employer: –
When you need auto insurance your employer can help you get discounts on insurance as companies usually have side deals for car insurance.
Good credit history: –
Pay your bills and insurance payments on time and maintain a good credit history.
Before signing the deal, read the policy papers carefully.