How to Buy Car Insurance – A Step-By-Step Guide

If you own a car in America, you are required to have insurance for it in almost all states. It is to ensure that you are covered in case of damage due to accidents to third parties. Since there are many options and rates can differ widely, buying insurance can often seem overwhelming. However, if you know how to approach it right, it can be pretty straightforward. A guide to buying car insurance without getting confused:

Determine the Coverage You Want

Typically, your insurance policy should cover liability cover, which covers the cost of damage to a third party if your vehicle is involved in an accident. It includes both property damage and personal injury. You can also buy collision coverage that will pay for the cost of repairs to your vehicle, irrespective of whose fault caused the accident.

You can buy extra cover for personal injury protection to pay for medical and rehab expenses for you and your passengers in case of an accident. This cover also compensates for any loss of wages due to the accident.

You can also add on coverage for an uninsured or underinsured motorist to cover the cost of damages caused by a driver without insurance or whose insurance is insufficient. If you have taken a loan to buy the car, you can consider buying gap insurance, which will cover the difference between the value of the car and the loan outstanding if the car is totaled.

Typically, the most popular policy is for comprehensive coverage that pays for any kind of damage to the car when it is not being driven. Make sure you know what the insurance requirements are in the state you live in; however, typically, they are the minimum amounts. According to the PFA editor review, it is important to do a proper analysis to decide what kind of coverage you need and how much the cover should be.

Get and Compare Quotes

You can contact different insurance companies and get their quotes or ask an insurance broker to do it on your behalf. There are quite a few websites that can give you comparative rates but be sure to provide the correct information.

If you don’t have the time to perform the analysis and are not too well informed about the various insurance terms, it may be better to go through a broker. He will be able to get you the best deal and also answer all your questions in a way you can understand easily.

When comparing quotes, be sure that you are not comparing apples to oranges. Remember the premium goes up with the coverage, but you can also avail of many different kinds of discounts, so be sure to ask the insurance companies regarding them. Opting for a higher deductible also helps to lower your premium significantly, according to a CNN report.

Conclusion 

Even though it can be tempting to choose the insurance company with the lowest premium, you should check out if you are getting all you need. Also, check up on their customer service and satisfaction levels online on websites like Better Business Bureau, Consumer Reports, etc.