10 Things To Know Before Purchasing Car Insurance

There are many things worth being aware of when purchasing car insurance. Making sure you understand what it is you’re spending your money on, and being confident it covers you to the level you require.

Check out Assurance.com when you are researching different insurance policies. Here are ten things to keep in mind before purchasing car insurance. Staying safe on the road is essential, which is why you should be as protected as possible.

What Is Vehicle Insurance, And How Does It Protect Me?

Source:progressive.com

Firstly, car insurance provides you with financial support if you or your vehicle are damaged, if your car gets stolen, or if you while using your car cause injury or damage another person’s property.

You pay a premium (a monthly amount) to an insurance company that will offer you this cover. They will then support you financially to the extent of the agreed policy and as long as the incident falls within the agreed terms.

Understand How Your Insurance Costs Are Calculated

Your insurance premium relies on many factors, not just what company you choose to insure your vehicle. Depending on things like your driving record, claims history, marital status, your age, gender, type of car and even where you live.

These will all have an effect on which rate you will be offered by companies. If a company finds you to be in a category that claims on insurance more often or has more incidents, they may raise your rate from standard to a non-standard rate, making your premium more expensive.

Research What Requirements Your Insurance Must Reach In Your State

What level of insurance you will need can change from state to state. For example, in Virginia, it’s an option that if you do not have the minimum coverage of motor insurance, then you can pay an uninsured motor vehicle fee to avoid a penalty.

Of course, you will want to cover yourself and your vehicle as much as possible, but that can raise the premium, so being mindful of what is required could save you some money.

Shop Around

Source:investopedia.com

There are hundreds of companies out there competing for your business. So, if you want the best cover for your money, it’s worth shopping around and getting quotes from a few different companies before you make your final decision.

Keep in mind that some companies tailor their insurance to do business with certain clients or even vehicles, so do a bit of research before contacting them or looking for a quote, they may not even offer you one.

Check The Companies’ Legitimacy

Unfortunately, there are fake or fraudulent companies out there looking to take your money and details. Because of this, you should  always make sure the company is legitimate before giving any details that are too personal, or that they could use against you.

Check through their website and, more importantly, reviews of their services to make a more informed decision. If the price is a lot lower than anything you have seen, be skeptical, you may have found a bargain, but in most cases it may be too good to be true.

Are You Currently Paying Any Other Insurance?

If you currently pay any other insurance on things such as your property, or rental property, you may find you can save some money through a multi-policy discount. If you insure under the same company for multiple policies, you may find you can save money on all your premiums.

This is definitely something that is worth considering, to save a little cash, and to make your accounts easier to manage since everything will be in one place.

Affinity Discounts

Certain companies offer discounts or ‘affinity discounts’ for people who are part of certain alumni, club, or association. So it’s worth checking with your preferred provider if you fall into one of these groups, or check with others in your ‘club’ if they know of any insurance providers that offer discounted coverage to you specifically.

Defensive Driving Discount

Source:northwestsafety.com

Another way of getting a discount of your premium is by taking a defensive driving course.  This will teach you a particular style of driving, that will help you further understand how to keep yourself, your passengers and others on the road safe.

If your defensive driving course is recognized and approved by the New York DMV, you should be entitled to a minimum of a 10% discount on your premium. In terms of vehicle insurance, that could mean taking off hundreds from the total fees.

Check What Extras Are Included In Your Cover

Some companies offer extras to your plan when you decide to get insurance with them. These may be things that you feel you don’t need or add too much to your premium.

However, others such as roadside assistance, mechanical breakdown cover, new car replacement and rental reimbursement may be useful to you. Paying for these expenses from your insurer may cost more money, so it’s worth looking into different policy options.

How Can You Keep Your Premiums Down?

When you first start out with insurance, there is not much you can do to bring down your insurance premiums, apart from further driver training or owning a car that is cheaper to maintain or fix if damaged.

However, it’s useful to keep in mind that this will decrease as you prove yourself to be a safe and competent driver over time. The more claims you have on your record, the more likely it is your premiums will rise.

But do not worry too much, insurers usually look further into the claims than you may think. So, if it was an accident that was not your fault, this should not affect your premium.

Summary

Source:iii.org

Insurance policies vary greatly, so it is worth finding the right one for you with a range of necessary features. In addition to comparing prices, it is worth checking out the extras that are available. Make sure you find something that works for you.