Know how to buy auto insurance like the back of your hand


Buying auto insurance can be a time consuming process which at times might seem complex if you don’t have the right information to assist you. In order for you to make an informed decision, it is imperative to be equipped with the right information to make a choice that suits you the best. 

Understand your requirement 

Every person’s requirements from an auto insurance policy differ and just like a person’s car, it needs to be customized to suit the car owner. When you go in to purchase a car, the salesman will obviously suggest a car; however, this may not be the best option for you. It is in actuality what he perceives to be the best car for you. You need to make your own decision as to what suits your applications and usage pattern. In the same way, no insurance agent can suggest what cover you should get, you should evaluate your usage pattern, the kind of usage and the mileage you cover annually and decide for yourself what cover you would require. 

Getting Quotes 

The internet was a revolution that took the world by storm a couple of decades ago and today it is a standard acceptance which is widely used for varied applications. There is a lot of information available at your fingertips and this information can be very beneficial for you. Auto insurance companies provide free quotes online in order to keep up with the competition, and this is the best place to begin shopping for auto insurance quotes. Apply at various sites and request a minimum of ten quotes, they are free to request and can really help you get the best deal in the market. 

Getting the best quote 

Getting the best quotes out there like most good things, isn’t easy. Well it’s not particularly complicated either, but it does require a bit of spade work. You will need to study how auto insurance works, and understand what cover you would need, and what cover you would not. You can decrease the monthly or lump sum payments that you make by reducing the extent of cover. 

Cover and extent of cover are very different things; cover is what you are protected against, like medical bills and the like; the extent of cover is the extent to which you are covered for the said damage and is a numerical value. Each state has a pre defined state minimum cover you would need to take to be considered legally and adequately insured. You can decrease the extent of cover to the state minimum, and hence drop your insurance premiums; provided you are prepared to shell out a bigger amount in the event of an accident. If you decrease the risk your financer faces in the event of an accident, they drop your premium in return, choose wisely depending on your financial situation. 

Calculation of your premium 

There are various factors that contribute to the calculation of your insurance premium. The most common are: age, sex, marital status, credit rating, drivers record, where you live, and of course the car you drive. Anything considered high risk by the insurer will lead to a higher premium, a young unmarried male with a blemished driver’s record living in a locality with a high crime rate, driving a sports car will attract the highest premium; whereas a middle aged man with a clean drivers record living in a safe locality diving a station wagon will attract a much lower premium.