Picking the right car insurance policy is a straightforward process for most drivers. However, it doesn’t hurt to explore the options.
For example, most drivers want to obtain the best rates. Therefore, it helps to complete some prep work before speaking with agents. It’s worth solidifying your position.
Insurance providers can skip insuring specific drivers, such as those who have accumulated too many driving infractions.
Some drivers qualify for attractive rates, but they have more interest in loading up on perks, such as auto club memberships at a discount.
Choosing car insurance becomes tricky when drivers own high-risk vehicles or have little to no driving records. Bad credit can also signal high risk to insurance providers.
Factors that impact insurability include:
- Driving record
- Vehicle make, model, and year
- Annual mileage
Completing prep work before speaking with an agent makes buying vehicle insurance easier. You can also compare policies by visiting online platforms.
The following are seven tips on how to choose car insurance.
1. Consider Current Vehicle
Insurance providers use risk to determine rates. Therefore, it costs more to insure vehicles with higher theft rates. Commonly stolen cars include:
- Honda Civic
- Honda Accord
- Nissan Altima
- Toyota Camry
- Toyota Corolla
Drivers who own these cars should expect to pay more than vehicles such as:
- Jeep Wrangler
- Ford Escape
- Ford F-150
- Mazda CX-5
- Honda HR-V
Drivers who add security components to their cars can obtain lower rates. Thus, check if the provider will lower their rates for adding car alarms, dashboard cameras, and other security features.
2. Determine Coverage Needs
All states require that drivers purchase insurance coverage. However, the amounts and types vary. Moreover, financial institutions place additional coverage mandates on drivers who finance their vehicles.
Thus, determine the amount of coverage needed before purchasing a policy.
Some drivers must obtain comprehensive coverage, and others only need to purchase the minimum. Drivers who own vehicles that cost more to repair might consider purchasing liability and collision policies.
Entering 2023, providers also sell policies protecting drivers against underinsured and uninsured motorists..
3. Assess Financial Standing
Some insurance companies will consider the driver’s financial standing to determine their rates.
Individuals who drive to work, run errands, or for pleasure must figure out how to afford their policies. Then, it helps to stand on solid financial footing.
In some states, insurance providers cannot judge applicants by their credit scores. However, the scores give providers insights into potential risks posed by drivers.
Since providers will judge applicants through risk assessment algorithms, drivers benefit from assessing and solidifying their financial standing.
4. Provider Reputation
As insurance companies judge applicants, it’s only fair that applicants also judge providers.
An estimated 5,000 car insurance companies operate in the United States. Some only operate in certain regions, and others specialize in specific types of customers.
In 2022, a vehicle insurance company will exist for most drivers. Therefore, narrow down your list by looking at their provider reputations.
For example, find out their customer service rates. Then, find out how easy it is to file a claim.
5. Compare Rates
Now, you’re ready to compare rates. You’ll find several online tools that compare rates for users in the same manner as online travel sites do.
Since several factors impact rates, they are not standard across the board. Driving records and career paths can shift rates between two individuals.
Nonetheless, it’s still a good idea to gauge possible rates from a group of providers.
After narrowing down your list of candidates, speak with their representatives. Negotiate the best rates and deals. Find out what deals they can offer based on your financial standing, driving record, and potential bundles.
Some insurance companies provide discounts to drivers who insure their vehicles and home with them.
Drivers who add minors to their policies can request bundling and good student discounts.
7. Consider Provider Perks
Sometimes companies need to provide higher rates. However, they can offer other perks—for example, drivers who stick with AAA like the Auto Club membership.
The top vehicle insurance companies heavily compete against each other for clients. Thus, they acknowledge that they must separate themselves from the pack.
You’ll notice how each provider aims to differentiate themselves when you watch their commercials on television or online. If any of those advertisements speak to you, speak with the provider about their coverage and perks.
Picking the right car insurance is a straightforward process. Sometimes vehicle dealers can make suggestions. Other times drivers can obtain referrals from family and friends. The right vehicle insurance policy will provide reasonable rates based on the car, driver’s records, and financial standing. Plus, the provider might offer some perks, such as auto club services.