Car insurance is your financial protection for owning a car. For many drivers, auto insurance is a requirement to operate a motor vehicle on the roadway legally. Aside from being mandated in many places, however, car insurance is necessary to protect you if your car is involved in an accident. As a result, monthly insurance premium payments are similar to your energy bills or phone bill. You’ll need to plan and budget for premium payments if you continue to own a car and drive.
As discussed, some auto insurance is required for many drivers. In most places, state laws mandate that all drivers carry a minimum amount of liability coverage. These laws are in place to protect all drivers on the road. Your liability insurance policy protects other divers and their cars if you cause an accident. Liability coverage will pay bodily injury and property damage claims resulting from an accident where you are found at fault. Unfortunately, if you only carry a required liability policy, you and your vehicle will not be covered if you cause the accident. As a result, many drivers choose to purchase additional comprehensive and collision coverage.
Collision and comprehensive coverage are also known as full coverage because of the protections provided to you and your vehicle no matter who is at fault for an accident. Full coverage policies also pay property damage claims resulting from non-accident-related incidents such as theft, vandalism, and acts of nature. If you are leasing or financing a car, the financial institution will typically require full coverage until the loan is paid in full. With additional coverages, however, comes increased insurance premiums. The average cost for liability coverage in the United States is around $550 a year, while full coverage insurance costs around $1,600.
Even though insurance coverage options provide peace of mind and bring you in compliance with the law, nobody wants to pay more than they need to. Auto insurance policies can be expensive, however, there are potential savings possible if you shop around.
Comparison Shopping
Like with any other purchase, it is always a good idea to shop around and price compare. When buying a new car, you will probably test drive several models at various price points. To get insurance for that new car, you’ll want to do the same thing. Several online comparison tools allow you to shop around for the best rates and coverages available. With a site like SelectQuote, you will speak to a dedicated insurance agent who will provide you with multiple quotes from various companies. Armed with multiple quotes, you will be able to make the best decision for a rate and plan that works best for you.
Compare Rates
As is the case with most things, cheaper might not always be better. Online comparison shopping will allow you to browse numerous plans at varying rates. When you compare rates, you will see how much coverage your money can buy you. While the policies with low rates might be the best plans, shopping around will allow you to see all car insurance coverage options and understand what is out there. You can save money and get quality insurance when you compare rates.
Compare Companies
When you comparison shops online, you will also be able to compare insurance companies. Each insurance company has different policies, rate guidelines, and discounts. Depending on your situation, you might be able to save even more money once you finalize a policy with a specific company. With some research, you can browse your insurance company options to discover various discounts and rate reductions that might add additional savings.
Auto insurance protects you if you’re involved in an accident. While insurance coverage is required in many places and is a very beneficial tool, it can be expensive. If you spend some time comparison shopping online, you will find the best policy and rate for your personal needs.
