Buying auto insurance isn't a point-and-click task. Even though it might seem simple, getting the best policy (and the best deal) requires time and effort. If you're about to start shopping for car insurance, take a look at what you need to know before buying a policy.
Use Technology to Help
According to a Facebook and comScore survey of over 1,000 Americans, 64 percent of adults have used their smartphone when shopping for car insurance. With technology at your fingertips, it's easy to do basic background research. This may include comparing companies and costs or learning more about your prospective agent.
Talk to an Agent
Even though more than half of all auto insurance shoppers use technology to shop for auto insurance, that doesn't mean they're necessarily buying online. Less than half of the adults who used their smartphones for insurance-related research bought a policy on their smartphone or other device. Nearly half of the auto insurance shoppers who bought offline (in real life) went through an agent.
Talking to an insurance agent is the easiest way to demystify auto policies. Unless you have extensive expertise in the area, an agent can explain the technical jargon, walk you step-by-step through the different parts of the policy, and look for cost savings that a computer program might not otherwise find.
Not only can an agent add clarity to the insurance-buying process, but they'll continue to help long after your initial purchase. Establishing a relationship with an agent from the get-go gives you peace of mind. You'll have someone who knows you, your situation, and your policy in the event of an accident or if you need to make changes to your coverage.
Know the Minimums
Again, this is another reason to hire an insurance agent instead of going with an online service. Every state has minimum required coverage. It is illegal to drive your car without the required minimum. Along with the legal required minimums, your lender (if you finance or lease your car) may also have their own base insurance requirements.
Meet Your Needs
Selecting the minimum coverage can save you money on your insurance premiums. But it may cost you more down the road. Likewise, choosing a low-premium, high-deductible policy may not end up saving you money.
Minimum policies give you what the name implies - the minimum coverage. In the event of an accident, you could end up paying a significant portion of the costs out of pocket. The same is true for high-deductible policies. While paying less right now on your premiums might meet your current financial needs, you may end up having to pay hundreds or thousands of dollars following an auto accident.
Calculate what your financial needs are right now, and weigh them against the potential costs you could incur if the unthinkable happens. An insurance agent can help you with a cost comparison for different levels of coverage and different dollar-amount deductibles.
Review Existing Coverage
Your auto insurance isn't the only policy that factors into your overall premiums. Depending on the insurer and the coverage, you may save money by combining policies. If you have (or will have) other auto insurance policies, a homeowners policy, or a policy for another type of vehicle, talk to an agent about your options.
Explore Your Options
Exploring policy options is an obvious first step. But it's not the only one to take. Premium payments are another aspect of auto insurance to explore before buying. Most insurers provide customers with multiple payment options, including yearly, bi-annual, quarterly, or monthly installments. Choosing the right payment option to meet your financial needs may save you money over time or allow you to purchase a more comprehensive policy.
Are you ready to compare policies? Contact Cypress Insurance for more information.
