Hey guys, welcome to Wapdam, the home of scholarships, games and Insurance. In todays blog post we will be dealing with How to get the best Auto Insurance Quotes.
Having valid auto insurance is essential for most drivers today. Not only is it required by law in most states, but it provides crucial financial protection in the unlikely event of an accident. With the high costs of vehicle repairs, medical bills, and liability claims, being uninsured leaves you vulnerable to steep expenses that could financially devastate you and your family.
Auto accidents are also fairly common occurrences. According to data from the National Highway Traffic Safety Administration, there were over 6 million automobile collisions in the United States in 2019 alone.
With so many vehicles on the road each day navigating busy traffic, intersections, merges and more, the risk of a fender bender or more serious crash is always present, regardless of how cautiously one drives. You never know when a distracted or impaired driver might collide with your vehicle through no fault of your own.
Another reason insurance is so important is that many drivers today simply do not have sufficient savings or assets to cover the costs of serious car damage, injuries or legal claims from being at-fault in an accident entirely out of pocket.
Medical bills for injuries sustained even in seemingly minor collisions can easily run into the tens of thousands of dollars or higher. Totaling a newer model vehicle could cost as much as what you paid for it originally. And liability claims from injuring others without enough coverage can potentially lead to wages being garnished for years to pay off damages. Having the financial protection of auto insurance removes much of this risk and uncertainty during a stressful time.
For all these reasons, ensuring your vehicle and yourself are adequately covered in case the unexpected occurs is a prudent decision giving both yourself and others on the road some peace of mind.
Understanding Auto Insurance Coverage Options
When starting to research auto insurance quotes, you need to have a solid understanding of the different types of coverage available so you can determine what your needs are and which options make the most sense for your individual situation. The core types of auto insurance coverage include:
Bodily Injury and Property Damage Liability: This is the minimum mandatory coverage required by law. It pays for injuries or damage you cause to others if you are deemed legally liable in an accident. Most states require limits of $25,000 per person injured and $50,000 per incident, with $10,000-$25,000 in property damage liability coverage as well.
Collision Coverage: Optional coverage that pays for damage to your own vehicle from colliding with another object like in a multi-car accident. It has a deductible, such as $500 or $1000, that you have to pay out of pocket before the insurance kicks in to cover repairs. A higher deductible lowers your premiums.
Comprehensive Coverage: Similar to collision but covers incidents not involving another vehicle like falling objects, potholes, flooding, fire, theft or vandalism damage to your vehicle. It also has a deductible you are responsible for first before the insurer covers losses.
Uninsured/Underinsured Motorist Coverage: Supplementary coverage protecting you if you are in an accident caused by someone without insurance or with insufficient coverage limits to fully cover your losses. This “fills the gaps” their liability limits do not cover like medical bills or pain/suffering claims.
Medical Payments Coverage: Optional coverage paying for medical treatment costs and lost wages for you and your passengers if injured regardless of fault after an accident, up to a limit like $5,000 per person. It has no deductible to keep out of pocket.
Gap Insurance: Just for drivers with vehicle loans or leases, this reimburses the difference between actual cash value of a totaled vehicle covered by collision versus the remaining loan balance, often higher due to depreciation.
Taking the time to compare these options’ costs and benefits for your situation is key to choosing the right amount and type of auto insurance protection tailored to your specific needs.
How to get Accurate Auto Insurance Quotes
Now that you understand the essential auto insurance coverages, here are the step-by-step instructions to efficiently shop around for competitive quotes:
Gather Your Vehicle and Driver Information: Collect details like your name, address, driver’s license number, vehicles you own including year/make/model and VIN numbers, your marital status, and driving record. Note any accidents or violations from the past several years.
Check Minimum Coverage Requirements: Review your state laws to ensure you are compliant with mandatory Bodily Injury and Property Damage Liability limits at a minimum. Not following regs can lead to stiff penalties like license suspension.
Decide What Additional Coverages to Consider: Think about your risk tolerance and assets to determine if optional coverage like Collision, Comprehensive or Medical Payments makes financial sense given your situation.
Start Comparing Online: Enter your information on quote sites like Insurance.com or provider sites like GEICO.com to quickly generate comparative premium estimates from multiple insurers all in one place.
Request In-Person or Phone Quotes: If coverage needs are complex or you prefer personalized service, schedule a virtual or in-person appointment with a few local agent offices too. They can craft custom quotes.
Inquire About All Available Discounts: Ask providers about good student/grades, bundling home/auto, paying annually versus monthly, installing trackers/alarms, taking defensive driving classes and more that may savepremium bucks.
Negotiate Competing Offers: Once you have the best handful of quotes, call each insurer’s pricing department to negotiate a lower rate by playing offers against one another. See who’ll cut you the lowest deal.
Compare Fine Print Carefully: Read policies thoroughly including coverage limits/exclusions, claims procedures and dedicated client support so you fully understand each contract and provider differences.
Ask for References if Needed: Any red flags – like very low premiums that seem “too good to be true” compared to others – warrant calling references to research customer satisfaction, claim handling reputation, etc.
Taking the time upfront to properly shop quotes and understand coverage options gets you personalized rates tailored to your situation from the best carriers out there. Knowing exactly what you’re paying for and who you’re doing business with gives lasting peace of mind down the road should claims ever need to be filed.
Choosing Your Insurance Policy
After generating multiple apples-to-apples auto insurance premium quotes, it’s time to thoughtfully select the right policy for your circumstances. These factors should help narrow down the optimal choice:
Maximize Coverage While Staying Affordable: Carefully weigh maximum protection versus budget when deciding coverage limits and deductible amounts. Too little coverage leaves gaps, but too high costs aren’t worthwhile.
Consider Long-Term Needs: Compare not just current vehicle values but future vehicle/coverage changes like having a baby/adding teen drivers to estimate needs over the next 3-5+ years rather than just now.
Evaluate Carrier Rating/Reputation: Verify proposed insurers maintain strong financial ratings from AM Best and receive excellent customer satisfaction scores from J.D. Power to know they’ll still be around if big claims arise.
Read Entire Policy Wording Carefully: Understand all terms, conditions, renewals, cancellation policies, proof of insurance requirements, grace periods for payments and more before signing. Never lose coverage!
Confirm Dedicated Agent Support: Great client service like quick claims handling, multi-lingual reps and 24/7 emergency roadside assistance ensure carriers take top-notch care of you down the line too.
Finding the ideal balance of robust liability coverage, lost wage protections and supplemental options delivered at fair rates by companies with proven performance records requires diligent vetting. But making this selection with care means restful driving knowing you and your assets are safely covered.
Factors for Long-Term Savings
To maximize auto insurance savings over the life of your policy and beyond, focus on:
- Maintaining a perfect driving record by avoiding all collisions, tickets, DUI’s which leads to steadily lower renewal rates.
- Requesting a claims-free discount every year without filing any comprehensive or collision claims that reset your ‘no claims’ record.
- Bundling auto with renter’s/homeowner’s insurance for your property for an additional multi-line discount.
- Enrolling in usage-based/telematics programs tracking safe driving behaviors via smartphone apps qualifying for generous premium deductions.
- Improving your credit score over time which many carriers now consider in risk calculations, lowering costs.
- Negotiating with existing carriers every 2-3 years if renewal quotes creep upward too much versus competitors’ rates due to loyalty.
- Asking about safe driver/defensive driving course discounts where available recognized for 3-5 years.
- Paying your premium in full annually for a small discount versus monthly installments.
Consistent prudent driving habits and diligently seeking out discounts wherever applicable adds up to major long-run savings on your auto insurance protection over the decades.
Common Question
What happens if I let my insurance policy randomly lapse?
If your state ever catches you driving without required liability insurance even briefly, heavy penalties apply like fines up to $1000, license suspension, mandatory high-risk insurance designation, and DMV holds preventing registration renewals until reinstated with proof of insurance. It’s never worth the risk – maintain continuous
Keeping Rates Low After Choosing a Policy
While taking the time upfront to thoroughly research quotes and select the right auto insurance carrier is important, ongoing efforts are also necessary to maintain competitive rates over the long run. Here are some tips:
Periodic Policy Reviews: Every 6-12 months, meet with your agent to review your needs and make recommended changes like removing teenage drivers or outdated vehicles no longer insured. Outdated policies overpay.
Promptly Report Life Changes: Changes like moving, getting married, changing your home/work address, adding new drivers or vehicles must be reported timely to ensure accurate rating and underwriting going forward.
Request Rate Checks with Clean Records: Every couple renewal periods, have your agent compare your excellent-standing policy to current market prices. Occasionally switching saves 10-15% off unchanged renewal quotes.
Maintain Eligibility for Discounts: Safe driver courses, good grades, multi-policy discounts, etc. that originally lowered premiums still require upholding habits and policies long-term to continue receiving reduced rates.
File Claims Appropriately: Only utilize comprehensive/collision coverage for major losses to avoid increasing your losses experience modified rating impacting premiums. Small incidents are better paid directly.
Avoid Driving Infractions: Speeding tickets, accidents, DWIs all significantly increase premiums for 3-5+ years plus raise future risk scoring, negating years of savings from clean records. Drive cautiously.
With diligent management of your auto insurance policy and personal risk factors, you can ensure affordable, optimized protection from your insurance dollar for many policy periods to come. Continuous small efforts reap substantial long-run rewards.
Conclusion
While state laws make auto insurance a necessity, finding the right balance of coverage, cost and carrier is important to be properly protected without financial hardship. Taking the time initially to thoroughly research your options, generate competing quotes and selection the right provider tailored to your needs sets the stage for success. Ongoing small adjustments maintain eligible discounts and competitive rates long-term as a responsible customer. With prudent shopping, policy maintenance and safe driving habits, obtaining the best auto insurance coverage for your budget becomes very achievable.
