8 Important Tips To Know Before Buying Vehicle Insurance

Insurance has always been an investment that many of us are not sure of. After all, insurance only kicks in when an accident or a disaster happens, and it’s not like any of us want those ill events to happen to us.

 

However, with the growing number of accidents on the road, getting vehicle insurance is surely a wise move. However, with all the fine print and the marketing techniques of insurance salesman, how can we assure that we’re really getting the best value for our money?

 

Below are the top 8 important tips that car owners should know before purchasing vehicle insurance.

 

  1. Getting Coverage:  How Much Do You Need?

 

First of all, it’s important to realize that different states have different requirements when it comes to what kind of insurance is needed. You can check with your state department or website for the information. A guide is also provided at the National Association of Insurance Commissioners so you can read about the different types of coverage you can consider. When you know what the state requires, you can also decide what you need. Different people have varying sense of cautiousness and also different driving habits. You should take into consideration any past accidents that you’ve had, the common routes that you take, and if you are accident prone.

 

  1. Check the Policy That You Have Now

 

If you already have a current policy, it’s important to review it to know what you can improve on or what you don’t need. Call your auto insurance company and ask them details such as the monthly and yearly fee and for what you are covered for. This will be your basis of comparison later on.

 

  1. Is Your Driving Record Clean?

 

If you’ve been a saintly driver without a single ticket to your name, then you have nothing to worry about. However, if you recall a speeding ticket sometime before, check your records if they are about to disappear. Bad records can drive up insurance fees, and it’s best to get a new policy when your slate is clean.

 

  1. Get Your Quotations

 

Lucky for us, we live in the time of technology. The Internet makes information very accessible to us, and most insurance companies give out quotations over their website. Set aside at least an hour or two to gather information on the best providers online. Call up their customer service, and while you do so, make sure you have your current policy, vehicle registration, and driver’s license information at hand. Also check with recommendations from friends and family, and you may also visit the office of any insurance company with a good reputation.

 

  1. Ask These Questions

 

When you do get in touch with the insurance company, make sure to ask the following questions: what are the monthly and annual rates for each coverage? What is the company’s payment policy? What happens in case of a late payment? What types of payment plans can you avail of?

 

  1. Scrounge for Discounts

 

You may not be aware of this but insurance companies offer discounts for different reasons. A good driving record, an affiliation with a certain organization, and the safety features of your car can all land you a mark down on the price. If you also have a home insurance policy, you can consider using the same insurance company since they might give you a lower quote for your loyalty.

 

  1. Check the Company

 

Of course it isn’t enough just to get a good quote on the policy, you also have to check the track record of the insurance company that you are planning to use. Again, you can go to the National Association of Insurance Commissioners for information, or you can check Standard & Poor’s financial strength ratings for the company. Also, consumer reviews can be one of the best indicators whether the company really gives good service or not since the evaluators are honest customers who all want to be served well.

 

  1. Review the Form

 

Sometimes we’re too pressed for time or we’re just too lazy to really recheck our policy. Before putting your signature there, read through the main points again to make sure you have everything that you need.

 

Getting vehicle insurance is definitely a smart move. Although there is a possibility that you won’t use it (and of course, it’s much better that way), an accident can also be too much of a burden financially when it does happen. Just make sure that you are paying for something worthwhile and that your policy really can give you the coverage that you need at the time when you need it the most.

 

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10 comments

  • With some companies, you can also get discounts for taking defensive driving courses and having your children take Driver's Ed (they can also get a good-grade discount!). I'm often surprised at how few people take advantage of the discount available to them–most of the time, you simply have to ask and you shall receive!

  • We check every year. Online deals are generally the best.

    Fortunately I drive very little (5k miles a year) and the car is parked off the road. We only have the one car anyway but we do live in a big city.

    At least in the UK the insurance requirements are the same everywhere! Not across the EU minefiled though….:-)

  • YFS /

    Good tip on check online for quotes. Comparison shopping is key. I wish I only drove 5k a year.

  • YFS /

    How much is the defensive driving course in relation the discount? I wonder what the pay back period is on taking the course.

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  • My son received a good driver discount by having us keep a log of the trips we took with him shortly after he received his license. Thanks for the reminder to get a comparison quote!

  • California Automobil /

    Hello! I've been reading your blog for some time now and finally got the bravery to go ahead and give you a shout out from Houston Texas! Just wanted to tell you keep up the good work!

  • I hardly leave responses, however i did a few searching and wound up here 8 Important Tips To Know Before Buying Vehicle Insurance. And I do have a few questions for you if it’s allright. Could it be just me or does it appear like a few of these comments appear like they are written by brain dead visitors? 😛 And, if you are writing at other places, I would like to follow everything new you have to post. Could you list of all of your community pages like your twitter feed, Facebook page or linkedin profile?

  • Linda /

    This is a very informative post… these tips are a nice ones… thnx for sharing this kind of information….

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