Guide To Auto Insurance Coverage: Buyer Beware

It’s a given that you have to get an insurance policy before you hit the road. But as you frantically compare the many different insurance companies vying for your attention and the variety of policies you have to choose from, you may find yourself sitting at more than a few forks in the road. So when it comes down to making a decision, don’t you think it’s important you are as informed as possible about the different tricks and pitfalls of buying a policy?

Too many people wind up with policies they thought were a bargain but in reality were not and just as many become convinced they need “extras” and “perks” that are very expensive and entirely unnecessary. Don’t be like these people! By using the following tips as a guide to your policy shopping, you can save yourself a lot of money and a lot of headache.

1. The most comprehensive coverage is not necessarily the best coverage (for you)

Even though it may be tempting to get all the “bells” and “whistles” that may come with an insurance policy, it may not be the best idea. Your insurance agent may try to convince you that you need full, comprehensive auto insurance coverage in order to feel financially secure. But if your vehicle is old, used, and/or you’ve already paid it off, it may be financially sound to go with a policy that is more basic. The less value your car has, the less expensive your policy should be. After all, do you really benefit by spending too much on a policy, even if that policy is ridden with seemingly cool benefits?

2. You get what you pay for

While you certainly should shop around for the most affordable policy, be wary of deals that sound too good to be true. They probably are. Like any product, you get what you pay for and that isn’t any truer with insurance policies. The policy may look good – but what about the claims service? This is hard to judge on your own. Ask your friends, family, and neighbors about what insurance companies they trust. You want a company that will fight for you in the event you are wrongfully blamed in an accident. You want an agent that will be there to answer the phone when you have a question. If a policy looks good on the surface but is incredibly cheap, you might expect some bad customer service. As well, there might be policy exclusions or hidden costs in your coverage – read the fine print!

3. Low deductibles may mean high costs elsewhere

One of the most common traps that buyers fall into when they are looking for a good bargain on a policy is that they are too easily seduced by “low deductibles.” But the fact is most policies that sport low deductibles are actually higher in overall cost, at least based on monthly rates. Make sure to examine every cost and fee of your policy before you determine if it will save you money. Especially if you are a safe driver with a good record, you should consider buying a policy with a high deductible. Likely that policy will have lower rates!

Secrets to Successful Savings

As you compare quotes, take stock of the following tips to get the most out of your experience:

Evaluate customer service. Once you’ve narrowed down your selections, make sure you’ll be taken care of by the insurer you choose. Customer service ratings are available through insurance rating companies like AM Best or Moody’s Investor Services.

Check financial stability. Even the best policy is worthless if your insurer is in poor financial standing. Before signing the dotted line, check your company’s financial stability through an insurance rating company.

Be comfortable with your selection. Ultimately, you need to feel comfortable with your insurer. Make sure you understand your policy and that your agent has answered all of your questions to your satisfaction.

These tips, partnered with our no-hassle referral service, will help you find the best policy for your budget.

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