Drivers who compare auto insurance quotes have taken a big step toward ensuring they will find cheap auto insurance, the very first step being a brief thought about car insurance. The first step is learning the areas of an insurance policy where decisions by the driver can save money. Then, if you compare insurance quotes, you increase the chances of finding cheap auto insurance.
What to Do Before You Compare Insurance Quotes
The first order of business is to understand what portions of an insurance policy contain the greatest potential for savings by comparing it with the others. With that information, you can ask for insurance quotes seeking the lowest possible insurance costs.
- Liability coverage. This part of the insurance policy contains three figures that outline how much your policy will pay in the event of a serious claim. Liability coverage is stated in three figures – the first is for a claim by an individual, the second is for claims by all people in an accident and the third is for all property damage in an accident. The lower the liability coverage, the lower the cost of the policy. But the decision isn’t that simple. First, most states have liability requirements, though they aren’t very high. Second, if the limits are lower than the amount of damage in an accident that’s caused by your fault, you can be sued personally for the difference.
- Deductibles. The deductible covers both collision and comprehensive coverage in the policy. The deductible amount – usually between $100 and $1,000 – is the amount the driver pays first before the insurance company then pays for the rest of the claim. The higher the deductible, the lower the cost of insurance. But there’s more to be considered here. If you can’t afford to pay the deductible, and you could be involved in several claims in a short period, you can’t set the deductible too high.
- Coverage that can be dropped. One area is pretty straightforward: many people have policies with coverage for rental and emergency roadside service. That same service is often also provided by motor clubs or credit card promotions. If so, you can decline the coverage in your insurance policy. But collision coverage, which pays for claims-related to an auto accident, and comprehensive coverage, which pays for claims that are the result of anything other than an accident (like a fire or flood), are not as simple. If the vehicle being covered is older and has lost much of its value, it could make sense to drop both the collision and comprehensive coverage portions of the policy.
Time to Compare Insurance Quotes
Armed with information on how to make decisions to lead to cheaper insurance costs, now is the time to get a number of insurance quotes. Seek out companies based on recommendations from friends, from ads or from the Internet. Using at least three to five companies, be sure to offer the same information during the quote process to each company. That’s very important, because it ensures that you are then making fair comparisons between all the policies when the quotes come in. Look over the figures and compare the auto insurance quotes carefully to make sure the coverage and deductibles are identical, and after you narrow it down to the last option then do ask yourself whether you have the best policy or not.