Car insurance is an essential part of car ownership. It protects your car from damages incurred in accidents or non-accident incidents, like fire, theft, and vandalism. There are certain factors you should consider before purchasing a car insurance policy. These include the amount of coverage you need, ways to reduce your premiums, and so on.
In this guide, we will provide you with a comprehensive checklist for getting the right car insurance for your needs.
1.Know the Different Types of Car Insurance Policies
The following are a few common types of car insurance policies.
- Collision insurance
This policy covers damages you cause to another vehicle or object by colliding with it.
- Comprehensive insurance
It covers damages caused to your car by non-accident incidents, such as fire, theft, vandalism, etc.
- Uninsured and underinsured motorist insurance
It covers medical bills and repairs for damages incurred in an accident caused by an uninsured or underinsured driver.
- Personal injury protection insurance
Also known as medical payments insurance, this policy covers your medical bills when you or your passengers are injured in a car accident.
- Liability insurance
This policy covers third-party property damages or bodily injuries caused by you while driving.
Apart from the policies mentioned above, you can also purchase additional coverages, such as
- Roadside assistance-It covers your car repairs in the event of a sudden breakdown.
- Gap insurance- It covers any gaps in your standard auto insurance coverage.
- New car replacement insurance-It pays the value of a brand-new car of the same make and model as your damaged car.
2.Decide on the Amount of Coverage
After knowing the different types of car insurance coverage, the next step is to decide the amount of car insurance you need to buy. Luckily, there are certain factors that will assist you in making this decision. For instance, many states specify the minimum amount of liability and underinsured/uninsured motorist insurance you must have. Also, the lender often requires the borrower to have collision and comprehensive coverage for a leased or financed car.
Thus, before you purchase a policy, review your finances to know how much premium you can afford. Then, try to reach a balance between your insurance needs and your financial capability.
3.Choose Your Insurance Provider
Once you know the type and amount of coverage you need, the next step is to choose the right insurance provider. To do this, make sure to compare the rates of at least three insurance companies. This will enable you to identify the ones with the best deals for you. Also, read their online reviews to know what their former or existing customers think about their services.
For a first-time car owner, the process of getting car insurance might seem quite complicated. However, by following the checklist mentioned above, you can choose the best coverage for your unique needs. If you have any questions about your auto insurance policy, contact our experts at Advanced Insurance Group today!