Do a Car Insurance Comparison before Buying Here’s how

When getting car insurance there is more involved than simply finding the lowest price possible and paying it.  Of course this is an option but there is a definite negative side to this too.  Here is a quick guide on some things to look for to compare car insurance before buying.

♦  Level of Coverage

Every state has minimum requirements for both collision and comprehensive coverage.  Collision is the amount that you are covered for if you get into an accident and comprehensive is the coverage for anything else.  If you do not mind not having good coverage is your car is lost, stolen, vandalized or ruined by natural disaster, going with the lowest comprehensive is fine.  It is only your car you have to worry about.  But for collision it is wise to get a little bit more to cover some of assets.  If you have a major accident it is wise to have decent collision to cover yourself and anyone who might possibly get hurt.  This could end up being a lot of money.

The second factor is deductible.  If you have money in the bank having a large deductable can be a good idea.  A deductable is the money that YOU have to pay on whatever repairs there are before the bank will kick in with their share.  Since the insurance company knows that with a 500-1000 dollar deductible small repairs will usually be covered by you and frivolous claims won’t happen this can greatly lower the price of insurance.  BUT, if you do not have the money available and need repairs it can be bad.  SO do not go for a deductable that is more than the cash you normally have access to.

♦  Customer Service

Equal “payments” do not mean you get equal payments.  Some companies are borderline scams.  They will pay money when they have to, but make it difficult through a complicated customer service and find many loopholes to not pay off when needed.  By doing this they can have more attractive prices, but if you need them dealing with them can be a hassle.  Look up the company online and make sure it has been established for a few years and has generally good service reviews.

♦  Discounts

If there are a lot of discounts this can be a good thing and lower your price if you are eligible.  Or will become eligible.  Things like good student, good driver, marriage and being over 25 all should come with solid dips in prices as most actuarial tables say that those groups have a highly decreased chance of having an accident.