When you want to take a call on auto insurance there are a few questions that you must ask yourself. This introspection will not only help you save some money, but will also make sure that you don’t end up with the wrong policy from the wrong insurance provider. When you are paying a lot of money as premium for insurance coverage, it is imperative that you make the right choice so that eventually when you claim, you don’t have trouble getting the coverage. Here are some questions you must ask yourself when you are about to purchase auto insurance.
What coverage do you need?
This is one of the most important questions to ask yourself when you are purchasing auto insurance. This is because your premium will depend on the coverage you seek, which in turn will depend on your vehicle as well as the state in which you reside. If you are reckless while driving and are prone to accidents, you must go with collision and PIP coverage. Similarly if you live in a place which is vulnerable to natural disasters, vandalism or theft, then it is advisable to go for comprehensive insurance. Third party liability insurance will vary often based on the state limits. These are the most important types of coverage that you should consider while purchasing auto insurance.
Do you need additional protection?
You might need additional coverage from time to time which would cost extra but will also give you peace of mind. For example, if you have a huge loan on the vehicle, you might consider totaled car or gap insurance. The totaled car insurance will compensate for the value of the car at the time of accident. The gap insurance will provide the difference between the loan amount due and the compensation provided by the insurance company for totaled car.
Does my car need additional coverage?
This is an interesting question to ask. If your car is in very good condition or brand new, the answer is very simple and straightforward. You will need auto insurance for collisions, natural disasters and theft. However, if the car isn’t in prime condition and is quite old, then you might feel that the insurance turns out to be costlier than the actual value of the car. In such scenarios, you might want to just go for third party liability insurance which is mandated by law. However, this question has to be answered based on calculations and not to avoid insurance costs.
How much discount can I seek?
If you check auto insurance sites, you will find the different types of discounts that you can avail. These include discounts for good credit score, good grades at college, driving certification courses and low mileage. It is important for you to ask yourself what discounts you can get, whether it is for safe driving or for low mileage. That way you will be able to take a better decision on the insurance coverage that you can afford.
