Five precautions you should take before you purchase auto insurance


When you purchase auto insurance you shouldn’t do so blindly. This is because you would be paying the insurance provider month after month for coverage for possible accidental damages in the future. So every possible precaution should be taken to make sure that when you eventually need the reimbursement after an accident, you will get it without a lot of fuss. Those who often purchase auto insurance without much thought or analysis, end up being in trouble later when they do need the insurance coverage. Here are some precautions that you should take while purchasing auto insurance.

  1. Compare the insurance rates of at least 4 or 5 different insurance providers. When you do that you are well aware of what the current insurance industry rates are. This way, you wouldn’t end up overpaying for the coverage that you are getting. There are online sites where you can request for free quotes from several providers. This will help you negotiate for a better rate from your existing auto insurance company, in case it is time to renew. It hardly takes any time, but it will save a lot of money.
  1. Compare what is on offer. In some cases, you might feel that one auto insurance provider is charging a lot less than another one. However, the reality might be totally different. This is because the coverage on offer could differ as well. Similarly, the package you get from one insurance provider could vary from another. If you are getting total coverage, including collision, comprehensive and liability insurance, for a slightly higher rate than just collision and liability coverage offered by another insurance provider, you will have to rethink. There are online sites which provide assistance in calculating what you pay for what you get, for an objective comparison of the rates.
  1. Check consumer grievances in the past. This way you will benefit in two different ways. Firstly, you will be able to find out about common mistakes which consumers make while purchasing auto insurance. Secondly, you will find out more about the insurance providers that you have been considering. Insurance companies, with a lot of complaints against them are best ignored.
  1. Check fine print of your insurance policy. This is the single most important step while purchasing auto insurance. By checking fine print you will be able to find out when you can claim and when you wouldn’t be reimbursed. Fine print also tells you the extent of reimbursement as you might not be able to recover full cost of your damage repairs from the insurance provider. When you check the fine print, you will be able to avoid future surprises when you eventually claim for insurance coverage.
  1. Ask friends, family members and colleagues. There is always a chance someone in your immediate circle has had a brush with the auto insurance providers. Any positive or negative feedback from people you know counts a lot. If someone feels that the consumer service of the provider is not up to the mark, you can ignore that company.