3 Ways to Successfully Buy Auto Insurance

Those who are auto insurance savvy know a thing or two that many people don’t. They know precisely what to seek out to get the coverage they’ll need to guarantee them against any potential losses to their automobile. Even more important, they know that although getting car insurance can be a costly nuisance, the alternative of not having insurance is far worse since, as IFC Insurance Company reports, an injury in a car accident can cost you well over $60,000.

It’s easy to be a penny chaser, or someone who’s just looking to save a buck or two when they buy auto insurance, but that limited view can cause heartache later when an insurance company stamps a “denied” on the insured person’s claim form.

What do those who have been successful at getting compensated for damages to their car do to ensure their success? Here’s what you need to know.

Listen to What Others Have to Say

When you buy auto insurance, one of the best courses of action is to first check out what other people say about an insurance company. There are plenty of websites that have consumer reviews related to auto insurance companies, for example, reviews of Mercury Insurance, containing both the positives and negatives to help you decide. If you go beyond just price, you might see that a company has been terrible at paying for even the most basic things. The customers will tell you in unvarnished language what they’ve endured. Listen to them to spare yourself from having a confusing experience that you’ll regret. There are organizations that can even help you understand what the claims payment process is like so that you can evaluate companies better, such as the Insurance Information Institute, an insurance industry trade group.

Get an Umbrella Policy

A personal umbrella policy is exactly what it sounds like. It’s a supplemental policy that offers fuller coverage than your standard insurance policy. More specifically, it extends the amount of liability coverage you’ll carry; for example, in the event of your having a judgment issued against you in a car accident case and subsequently your having to pay more than what your personal liability insurance guarantees, then you’ll be adequately covered. This additional protection, while offering so much more, really doesn’t cost as much as you’d expect. Just a few hundred dollars more per year will guarantee you a personal liability limit of over $1 million. When you consider that without this important line of defense of extended coverage, if you were held liable and couldn’t afford to pay, then you could potentially face financial ruin. So, it’s a relative bargain.

Compare Insurers’ Costs

Savvy insurance shoppers don’t settle for the first insurer they see that has a good price on auto insurance. They shop around to see whether another insurer can offer a better price quote. They also look to their state insurance department for insurance rate comparisons—every department has a website—a key resource that’s often overlooked by the majority of consumers. The state insurance department also provides complaint records for insurers, which will be equally helpful in the evaluation process.

Ask for Discounts

Something what’s often forgotten about is simply asking about further customer discounts. That simple request could lead to significant price breaks that don’t affect coverage at all. Discounts—retiree discounts, multicar discounts, etc.—are frequently given to customers who haven’t had any moving violations in the past three to five years. Students should inquire as well as veterans. There’s what’s called a “good student” discount that’s for policyholders with students on their policy who have good grades (yes, proof is needed). If you purchase an antitheft device or another type of alarm for your car, then that generally qualifies you for a discount as well. Being a member of certain groups like AARP or branches of the military can usually qualify you for special discounts. Many insurance companies will post their discounts on their websites, so check those often to see if there’s something of interest to you.

What It Comes Down To

Buying auto insurance doesn’t have to be a hassle. Sure, it’ll require doing some much-needed research, but you won’t be confused or overwhelmed if you follow the previously mentioned suggestions: listen to what others have to say, get an umbrella policy, compare insurers’ costs and ask for discounts. You’ll be fully prepared to buy the right auto insurance from the right agent at the right price, and that’s an unbeatable proposition.