Ask these questions when shopping for car insurance.
Auto insurance is a necessary evil. We all know we need it but we hope we never have to use it. Most of us have basic knowledge of car insurance, but it doesn’t always help much when it comes time to shopping for a new policy. Before you do, be ready with questions that help cover the finer points of a policy.
Do I have all the coverage I need?
You must meet the state’s minimum requirements in order to have legal coverage. From there, you can add on any coverage you see fit. These commonly include collision, comprehensive, and uninsured/underinsured motorist protection. If you have a lot of personal assets to protect, you may also want to discuss excess liability insurance with your insurance agent.
Am I getting all the discounts and savings I can?
The cost of insurance partly depends on the coverages, deductibles and policy limits you choose. It’s also based on your risk rating, which is comprised of many factors including your age, gender, occupation, the car you drive, and more. Although there isn’t much wiggle room in negotiating your risk rating, you can look for discounts. Many insurers offer discounts if you’ve completed a safe driving course, have a child that gets good grades in school, or you take out more than one policy with the same insurer.
What is my deductible?
Your deductible is the amount that you’ll need to pay out-of-pocket in a claim before the insurance kicks in. To keep premiums low, you may choose a high deductible. However, opting for a high deductible can put you in a bad financial spot if you cannot afford this much out-of-pocket when filing a claim. Work with your insurer to find the right solution.