Auto insurance basics and steps to getting a good policy


Getting an auto insurance policy is not a very difficult task. However, getting a policy that suits you and doesn’t cost you a lot either, needs some research and investment of time. Here are the steps that you could follow to ensure that you have a good coverage protection at a manageable rate.

Use online resources and shop for insurance policies

You can use various websites, to check the current market prices as far as auto insurance policies are concerned. There are sites which will let you use insurance calculators to find out what you need and how much it will cost. Several sites also provide comparisons of auto insurance premiums based on the policies they are offering. By shopping for the policies, you will get a good idea of what you need and how much you should pay for it.

Online, agent or insurance provider’s office

The cost of insurance also varies based on where you get it from. An insurance agent will give you good service but the policy would cost slightly higher. You can also get your insurance policy directly from the provider as it will be slightly cheaper. But you will have to sacrifice the service for saving cost. There are a lot of websites, which will allow you to apply online for insurance policies. This will save both time and money and will also ensure confidentiality of your information submitted for getting the policy.

Decide what you need

The liability insurance is mandatory. However, you need more protection coverage, especially if you want to avoid long term loss. Comprehensive and collision coverage are usually taken by most car owners. Comprehensive coverage is for protection against unforeseen incidents which include vandalism, fire, theft and natural disasters. Collision coverage is for protection against accidents, and you get damage cover irrespective of who is responsible for the accident. There are other extras like roadside assistance, towing insurance, totalled car insurance, gap insurance, etc. which you may or may not need. So your final insurance cost depends on what you need. Similarly, how expensive the car is and how new, would determine what insurance you will need.

Do you have a loan?

If you are buying a car on a loan, you need totalled car insurance and gap insurance. These are imperative to cover against the losses you face, if your car is totalled in an accident and you don’t receive much for it. In such case, you will need insurance cover to pay off your loan. Zero gap insurance pays for the difference between the car’s market value and the loan amount that you owe to the lender.

Negotiate for discounts

The last step before taking your policy is to negotiate for discounts. There are numerous factors which determine the cost of your insurance including the condition of the car, the loan amount, the mileage, driving record, credit record, age, profession, gender, etc. Depending on what works in your favour, you will have to negotiate for the discounts.