Many car owners dread the day they have to purchase car insurance or renew their policies. There are so many things to consider and look for, it is overwhelming for even the most prepared policy buyer. There are car insurance questions that every car owner should ask before renewing or purchasing a new car insurance policy.
Who needs car insurance?
Everyone that owns a car, needs to purchase some sort of car insurance. Most states have state minimums that provide protection.
Where do I find car insurance?
There are many car insurance companies. Starting an online search is often the easiest because after completing one online application, multiple companies can provide a quote. For those that prefer to ask their car insurance questions in person, the local yellow pages are filled with independent agents and huge national chains.
What is the difference between companies?
Many car insurance companies offer different programs to their customers. There are some insurance companies that are very customer focused and others are more driven by their bottom line. There are benefits that every car insurance company, it can be overwhelming to just pick one. It is always best to look into a company that is familiar and work from their.
Why do their prices vary?
Every car insurance company looks at risk a different way. Some companies may see a 23 year old as a high risk driver and others may see them as less of a risk driver. There are many things that go into calculating the price for car insurance. Companies look at age, sex, residential location, driving and credit record. For different companies, those things have different levels of importance so the pricing will never be the same as another company.
What types of car insurance are there?
There are several types of car insurance.
- Liability insurance only covers damages to another person’s property if the policyholder is at fault. Liability usually covers medical payments too.
- Collision insurance covers repairs for the policyholder’s car in the event of an accident.
- Comprehensive insurance is expensive because it covers almost all types of accidents. Theft, animal collision and weather damage are some of the things comprehension covers.
- Uninsured motorist protection pays for damages when the person at fault doesn’t have any insurance.
- Medical/personal injury coverage pays for medical bills for the policyholder and their passengers.
- No fault insurance is extremely expensive and only available in 12 states. This policy will pay for damages no matter who is at fault.
- Gap insurance is insurance that will pay the car off to the finance company in the event of an accident.
How do I get the best price?
Know what type of insurance is needed and decide on a budget. Although all types of insurance are available, if the price is more than a policyholder is willing to pay, its not worth looking at. Once that is decided, start requesting quotes and asking for discounts.
With all the different types of car insurance, there will always be policyholders with questions. No matter what company is chosen, policy holders should never calling their agents and asking their car insurance questions.