Auto insurance companies spend considerable amounts of money advertising their insurance. Television and radio ads are often encouraging consumers to shop around for car insurance. These businesses tell the audience that a little time and research can save them bundles of cash.
If it is so easy to keep your cash in your wallet, then why does Progressive advertise that they will give you quotes from other companies? Obviously, someone from Progressive has recently shopped for auto insurance.
The task of shopping for auto insurance can be tedious, but by keeping a few simple things in mind, consumers can protect their wallets. All drivers should carry insurance, so you might as well get the most coverage for the least amount of cash.
There are two reasons to purchase car insurance. Drivers are required by law to carry liability coverage. Also, full coverage is offered to protect your assets.
When shopping for car insurance, cover your assets. Your vehicles are most certainly an asset to you. Most vehicles are used for transportation back and forth to work. If you are involved in an accident, you will need to make sure your need for transportation is covered financially.
If you have a loan on your vehicle, you are typically required to carry full coverage on your vehicle. This means that you will receive money, in the event of an accident, to repair or replace the vehicle. The amount of cash will vary depending on deductible, value of vehicle, and many other factors. Most lending institutions require the full coverage protection to protect their interest in the vehicle.
Liability coverage only covers the other person. If you, as a driver, only have liability coverage and are involved in an accident, you will be responsible for the repairs to your vehicle. The amount of liability coverage required by law varies from state to state.
Before pricing car insurance, be certain to consider the amount of coverage you need and prefer. After you have chosen the amount of coverage you must have by law, or what coverages make you the most comfortable, start comparing apples to apples.
Know your limits. When calling insurance agents, they will ask you what limits you want to have. Always compare the same coverage amounts. Rates can range widely depending on your limits. If, for example, you price the state minimums for liability from SAFE AUTO, then when speaking with the agent from Geico you decide to increase your limits to protect your assets in the event of an accident, the comparison of rates will be inaccurate.
Shop around. Call the companies directly or get a quote online. Each insurance provider bases their quote on different factors. The variables are not the same for each company. Your driving record is obviously one aspect to be considered. The difference from company to company is the length of history considered. Some providers will look back three years for traffic violations. Other companies may look back, as far as, five years! If you had a speeding ticket four years ago, this can mean the significant difference between a surcharge and a preferred driver status.
Consider extras offered by the company. Progressive offers roadside service with their policies. This service can be accepted or declined. Some drivers may love the security of knowing this option is available in case of the dreaded flat tire, but if you already have a membership to AAA, then you may prefer to pass on this service. This will save you from spending for a service you already have or simply don’t need.
Another extra fee is added for a rental car coverage. Like other companies, Progressive offers a rental car program to pay up to thirty dollars towards the cost of renting a car in the event your vehicle is disabled due to an accident. For my family of six, this service was not financially beneficial. We have a second auto that could be used for transportation during the repair of our primary vehicle. Also, it is very costly to rent a van large enough to haul my entire crew. For this reason, I, as well as other consumers, may choose to decline this service and keep your funds in your bank account.
For the consumers who like the convenience of all your insurance needs with one company, consider Geico. They now offer policies for auto, motorcycle, renter’s insurance, and home owner’s coverage. Ask your current provider, and prospective agents, if they offer the various policies to fit your needs. Shop around and save money on all your insurance products.
Even if the task of shopping for insurance seems daunting, just do it! Put pennies in your pocket by doing your homework. Protect your wallet and your assets while keeping your cash. Consider the extra services you prefer to customize your policy to fit your needs and your budget.