An auto insurance policy protects you and your assets against financial devastation in the case of an auto accident, auto-related injury and the cost of damage to your vehicle and others. Not many individuals have the resources to pay immediately for the replacement of their own vehicle, let alone another’s vehicle or medical costs if you are the responsible party in an accident. Insurance policies protect you against these enormous costs.
Things to know before shopping for auto insurance
A policy is required – It is important to keep in mind that auto insurance is not optional. It is required by law in most every state to carry an auto insurance policy with at least the minimal requirements of coverage for that state.
A premium is required – An insurance policy requires a payment, called a “premium”, which is paid to the insurance company each month or every six months. In return for a premium paid on time, the policy protects you from financial disaster in cases of serious accidents and injuries.
Discounts on premiums – While policies are a necessary financial burden, there are certain factors can help reduce the cost of monthly premium payments. These include a good driving record, good grades, completing driver education courses, carrying multiple policies with the same insurance company, having safety devices in the car (such as anti-lock brakes or anti-theft devices), being a long-term policy holder and carrying a high deductible.
Deductible – this is an amount you pay first before the insurance policy covers the rest of the cost up to the limit of the policy. Deductibles range from $250 to $1,000. Keep in mind that the higher the deductible, the lower the monthly premium payment will be. To save money on insurance policies, request a higher deductible, such as $500 or $1,000 if you can afford to save or come up with that amount in case of an accident or injury.
How to compare agencies or providers
In order to compare providers and coverage, insurance policies set forth three numbers as a guideline. What is the minimal recommended coverage? According to Consumer Reports the following general guideline for adequate coverage is recommended:
$100,000 per person, $300,000 per accident, plus $100,000 for property damage
It is often written as 100/300/100. These are the limits of what your insurer will pay when an accident and/or injury occurs.
Balance price vs. coverage
It is important to find the balance between having adequate coverage that is right for your wallet without overpaying for too much insurance that you don’t need.
By calling an auto insurance company, or requesting an online quote, a representative will ask for the year, make and model and mileage of your car along with the age of the driver and other discounts that can be taken into consideration. A quote can then be given for the coverage limits you request.
A good guideline to follow is to compare at least three quotes from differing insurance companies using the same limits for all three quotes. Also take into consideration the customer service that will be given and the ability of the insurance company to pay and the financial stability of the insurance company that you will be working with in the event of a claim.
For more information on buying auto insurance or to receive an auto insurance policy quote, call our Spanish Fork Utah office at (801) 798-7461. Let our dedicated and licensed professional insurance agents answer your questions. regarding an auto, home or property insurance policy.