Five Things to Keep in Mind While Buying Auto Insurance


If you are new at buying auto insurance then chances are that you are overwhelmed by the options available for insurance. The good news is that buying vehicle insurance doesn’t have to be confusing and there are many guides to help you buy insurance. The following paragraphs will elaborate on 5 things you should keep in mind while buying auto insurance.

State Laws and Limits 

Each state has its own auto insurance laws and limits. While buying vehicle insurance you should be aware of these state laws and limits but you should also be aware of the ideal limits per liability. Bodily injury liability is one of the most important covers hence it is mandatory in almost all the states of USA. The minimum limit for this liability will vary but the ideal limit is $50,000 per person injured and $100,000 for all the people who were in this accident. Property damage liability is yet another important liability and the ideal limit for this liability is $100,000 per collision. 

Know Your Liabilities Well 

Mandatory liabilities need to be purchased by law but voluntary liabilities are equally important. Before buying auto insurance you should make a list of the liabilities you want to opt for. The bodily injury liability pays for medical expenses when a third party is injured in your vehicle while you were driving and this liability also pays for any legal expenses in case you are sued. The property damage liability also pays for all legal expenses in case you are sued and it pays for the other person’s damage during the accident. 

Consider Collision and Comprehensive Coverage for New Cars 

Collision and comprehensive coverage are two important liabilities that car owners should opt for if they have new or expensive cars. Collision cover pays for damages to your car and replacement of your car after an accident. The comprehensive cover pays for repair and replacement if your car has been damaged in a natural calamity or if it has been a victim of vandalism. 

Contact More Than 3 Auto Insurance Companies 

Most people who are opting for vehicle insurance usually settle for a policy from the first vehicle insurance company they contact. This is by far the biggest mistake while buying vehicle insurance since by opting for the first company you are not allowing yourself to know about better companies. While searching for vehicle insurance you should contact 3 or more insurance companies and get free quotes. You can either contact these companies online or you can contact them via the phone. 

Read the Agreement 

While signing any legally abiding agreement it is important for the customer to read the agreement carefully and this is especially true in the case of vehicle insurance. Insurance companies often hide extra clauses in a tiny font or in inconspicuous places so that the customer doesn’t come to know about them till he gets his first statement or bill. 

While reading the agreement you should look out for any extra charges or any additional things you have not opted for. You should make it a point to read the large print along with the small print to avoid paying any additional charges. If you feel that the agreement is not as per your requirements then you should ask the company to clarify the specific clauses and if needed then they should make a new agreement.