Most car owners go the easy route when purchasing car insurance. They either follow their friends’ referral or opt for a policy whose commercial they have most recently seen. These are not exactly the best way to go about this process.
For starters, you must ask yourself these specific questions:
1. What specific car insurance coverage do I require?
The answer to this question differs from one car owner/driver to another. Many factors contribute to what specific coverages you require. For instance, if you are accident-prone, perhaps a comprehensive policy is your smartest option.
If you’re a low-risk driver, you need not pay those high premiums for unessential coverages.
2. How do I fare when it comes to insurance providers’ risk assessment?
The “risk” you pose to a car insurance provider is taken into account when deciding the rate of your premium. Here the “risk” is determined by several factors, including age, sex, criminal record, driving record, and even credit score. Before talking to an insurance agent, you must already have a rough estimate of your “risk factor”.
3. Who is covered?
This is most crucial to couples and parents. If you’re single and living alone, then this should not be of concern. But if you live in a house with family members who will most likely drive your car at some point, this becomes an essential issue to take into account before signing above the dotted line of a policy contract.
4. What are my deductibles?
The word deductible refers to the amount you will have to pay outright should your car suffer damage or any loss, before your insurance policy provider foots the entire remaining costs. The rate of your premium will also depend on your chosen deductible deal.
5. Am I eligible for any discount?
Car insurance providers usually give discounts to certain types of drivers. These may include those who trained under professional driving teachers as well as those who are considered low-risk drivers.