Compare Auto Insurance: Common Pitfalls To Dodge

To compare auto insurance plans, you will  need to find out rates, possible discounts, and much, much more. Is it time for you to decide if you'll renew your policy? Are you leaning towards finding a new insurer with better rates and coverage? Step one is to get a pen and paper and starting researching your options.

Find Out Who They Are

It is very important to learn about the reputation and financial status of each of possible insurer. Do not just sign up with the company that offers the cheapest rate. Often, this is a company that will gladly sign you on, but reluctantly help you with a claim. Search for a company with a good reputation, solid customer service, and positive ratings and reviews. When it's time to compare auto insurance companies, simply go to your state's Department of Insurance website to find out all you need to know. Let other people's experience help you make a smart decision.

Find Out What They Exclude

Just as you're trying to cut costs, so are insurance companies. When you compare auto insurance providers, don't just focus on what they offer. Focus on what they exclude or limit in their policy as well. Often what you think is a good policy is really just poor overall coverage.

Most states have a minimum amount of coverage that is required. It is suggested, however, that you go above and beyond the required minimum coverage. It may only cost a few extra dollars a month, but it could save you thousands if you ever have to submit a claim.

Get the Discounts You Deserve

Don't go with a company who refuses to give you deals or discounts on your premium. There are numerous ways to save; it's up to an educated consumer to compare auto insurance rates to get a good deal.
  • Low-Mileage Discount: Ask about this if you do not drive often. Less driving means a lower premium.
  • Safety Discount: If your car has Anti-Lock Brakes, airbags, automatic seat belts, or an anti-theft device, you should be eligible for a discount.
  • Good Driving History: If you haven't been involved in an accident in over 3 years, and if you keep your traffic tickets to a minimum, ask for a deal.
  • Multiple Cars: If you insure more than one car with a company, ask about a multi-car or family discount.
  • Honor Student: If you are a student on the Dean's List or Honor Roll, find an insurer who will discount your policy if you maintain your grades.
Be Aware of Fraud

It seems that fraud and scams are becoming more and more prevalent. As you compare auto insurance providers, be sure to check their status with the Better Business Bureau. Also choose a company that is licensed in your state. An unlicensed company cannot protect you.

Until you're sure the company you're dealing with is legit, never give them any personal information and NEVER pay cash!

blog comments powered by Disqus