Buying an auto insurance policy for your vehicle can be confusing, and you may find that working with an auto insurance agent can help you clear up some of the information. There are many different insurance companies you can work with, or you may want to consider an independent auto insurance agent to help you.
Determining What Insurance You Need
Before you buy an auto insurance policy, you need to understand the kind and amount of coverage you need. Older cars do not require as much coverage in many cases, but they still need to be insured to operate on public roads and highways in nearly every US state.
If you own your car and there is no loan or lien on the vehicle, you may be able to buy an auto insurance policy that provides the minimum amount of insurance for the vehicle, saving you money if you are never in an accident. If you have a loan on your car, the lender will require coverage on the vehicle that will cover any damage that happens to it, to protect their investment.
The auto insurance agent you are working with can go through the details and show you the cover requires for your car or truck so that you can pick a plan that works for you. Many people drive for years without using their insurance, but buying a policy that leaves you underinsured and gambling on not needing it can be a considerable risk to take with a large investment.
Understanding Deductibles
When you are shopping for insurance, make sure you talk with the auto insurance agent about the deductibles on the policy you are considering. Often, people opt for larger deductibles to lower the monthly cost of the insurance, but that can leave you in a bad position if you need to use the insurance for a repair.
The auto insurance policy may require you to pay your deductible before any work is covered on your car. If the policy has an overly-large deductible, that can leave you scrambling to try and cover it so that you can get the repairs you need and get your car back on the road.
Talk with the auto insurance agent you are working with about the deductibles on the policies you are considering, set a range that you feel you can cover, and look for policies that fit that. If you set aside your deductible amount in a savings account and don't use it, it could earn interest and still be there if you need it later.
Share4 March 2021
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!