Auto insurance is important to carry, and in most states, it is the law that you at least have limited liability insurance. Auto insurance is essential because it will take care of you in case of an accident and cover both sides, whether you are at fault or not. Knowing this, there are many questions when it comes to choosing insurance. Some coverages are complex, and others that are simple and basic. Here are three things you need to know to help you choose the right auto insurance for you.
What Kind of Coverage Do You Need?
There are many factors to consider when you are deciding what kind of coverage you need. If you are purchasing your car and making payments on it through a lender or dealership, since they will own it until you pay it off, most will require full coverage. You also may want to consider GAP (Guaranteed Asset Protection) insurance until your car is paid off. GAP insurance is coverage that will pay off the car if it is totaled in an accident. While full coverage will help you get into a new car, you will still be on the hook for car payments if your car is totaled. GAP insurance eliminates this worry.
Depending on your vehicle’s value, you can still have some scale of differences within the full coverage options. Higher deductibles will get you a lower rate and the year, make, and model can affect the cost of your decisions when it comes to how much coverage to get.
If you own your vehicle, your choices are a much larger variety. The best way to figure out how much coverage to get in this case, you need to find out your car’s value. In some states, you can put in the VIN or Vehicle Identification Number, and it will automatically let you know the value. If your car is older, you may only want to carry minimum liability if you are ever at fault for an accident. If your car is more valuable, you may want to carry full coverage. The value of the car is the most important factor when deciding how much coverage to get.
You also need to determine what else you may need, such as roadside assistance and rental car coverage, if your car is in for repairs after an accident. Usually, these extra coverages are only a few dollars a month but can save you hundreds on towing and rentals if something happens.
Choosing an Insurance Company
When it comes to choosing an insurance company, it is agreed that the number one factor in the decision is the cost. There are so many companies that compete in this market you can essentially get the insurance you can afford. However, remember that insurance is like anything else in this world in that you get what you pay for, which when it comes to your vehicle should be of significant importance.
If you get cheap insurance or go with a small company, you can run the risk that you might not be covered well or well represented if something catastrophic happens. So while you want to factor in the cost, you need to still go with a reputable insurance company. The reputation of the company is just as crucial as value. You need to make sure the company has an overall good reputation and high ratings in customer satisfaction.
One last thing to consider is the claims process. You need to make sure that you understand how claims are processed and what will and will not be covered should you file a claim. Also, ask about their processes should you get in an accident or need assistance in an emergency.
You Have Made Your Choice
Once you have made your choice and put in the insurance company’s call, be prepared with exactly what you want and stick to your guns on your choices. The job of the agent is to get as much as possible in premiums. This is not in your best interest. In most cases, now you can get insurance online without ever speaking to an agent. While this is great, it is still best if you contact an agent to answer any questions.
When getting the insurance online or over the phone, ensure that all of the following factors that apply are considered to lower your insurance’s overall cost.
- Mileage and usage
- Climate controlled winter storage
- Student, senior, business, or association discounts
- Good driver discounts
- Environmental discounts if you have a smart car
- Alarm and tracking systems
- Defensive driving class discounts
When looking into auto insurance, you need to consider cost, coverage, and claims. Don’t let yourself be influenced by cute ads, but rather look for the company and coverage tailored to your needs and wallet.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.