There is no denying that excellent car insurance is essential and crucial to ensuring that you do not end up in a financial disaster just after you have been in a car accident. Car insurance is helpful, necessary, and expensive.
But no matter how difficult it’s to get great car insurance or how much it costs, having great coverage is necessary if drivers want to drive their cars safely without the risk of getting in a hassle after a traumatic accident.
People often put too much importance on getting a cheap car insurance policy, even if it means compromising the coverage quality. Remember that getting a subpar policy just to save money can result in you losing a lot more money than what you saved.
When it comes to defining “great” coverage, both price and coverage get equal weight. Car insurance must have great coverage to get you out of the most severe accidents and mishaps, and it does not have to cost a fortune at the same time.
So here are some of the best ways to shop for car insurance to get the best coverage at the best price. Let’s get started.
Compare Auto Insurers
Comparing car insurance will always be at the top of the list when it comes to saving money on auto insurance policies and getting great coverage. It is so important to compare car insurance that thinking of buying policies without doing would be foolish.
Compare all the available car insurance companies in your state, and look at their coverage, customer reviews, insurance claim processing time, and overall satisfaction level, along with the price and optional features.
Choose an auto insurer with various coverage options, excellent add-on availability, and a presence almost anywhere in the country, along with majorly positive reviews.
For example, if you live in Illinois, look for cheap Illinois car insurance companies, and compare their prices and coverage. Make sure you compare all the options available to make sure you get everything and then make your purchase.
Remember, the more you compare, the more you save, and the better you purchase.
Consider Car Insurance Endorsements
Everyone is different, and the same is true when it comes to driving. Having car insurance endorsements or add-ons is a great way of improving the practicality and usability of your car insurance policy.
For example, if you are planning to go on a road trip, a long one, then consider getting Roadside Assistance to improve the usability of your policy. Roadside assistance adds extra features to your coverage.
You can use it if you get a flat tire in the middle of the road, if your car’s battery dies, or if it needs towing or winching. Roadside assistance is beneficial when needed, and it does not cost too much.
Apart from RSA, there are other helpful car insurance endorsements that you can avail of based on your needs to improve your insurance coverage. Contact your auto insurer to know more about what add-ons they offer.
Ensure Sufficient Coverage Limit
One of the ways many drivers save money on auto insurance is either by not having sufficient car insurance coverage limit or straight-up being underinsured. Being underinsured can be one of the worst things that can happen, worse than getting in a dangerous car accident.
Every state has its own minimum coverage limit requirement. It means that your liability coverage (and other policy’s coverage limit, if any) must be able to pay the amount specified by your state in a car accident.
The problem is that many drivers keep their coverage limit to match the minimum coverage limit by the state. While this would allow them to drive a car legally, an accident is rarely going to abide by the laws of the state.
Car accidents are costly, and if the cost of it exceeds your policy’s coverage limit, you’ll have to pay the remaining amount from your pocket. Saving a few hundred dollars could lead to spending thousands of dollars.
Here is an excellent rule of thumb; always keep your coverage limit twenty to twenty-five percent more than the state’s minimum coverage limit. It ensures that not only your insurance coverage complies with the state’s laws but also secures you financially in a car accident.
Higher coverage limits will increase the cost of your policy. You can avail of different discounts, increase your deductibles, and keep a clean driving record to counter the price hike. Avoid getting in a car accident so that you pay for what you need, not to counter the damages of bad driving.
Get All the Important Insurance Policies
Having the best coverage means that you are covered by all the different types of car accidents. Great coverage will cover all the costs that could come up due to a car accident. So, it is essential to have all the critical insurance policies, both mandatory and optional ones.
Here are all the different car insurance policies and what they cover (in brief) that every driver must have to ensure excellent coverage.
Liability Coverage: Liability insurance is absolutely mandatory as it covers the cost of injury treatments and car repairs of the other driver in an accident where you are at fault. It is compulsory in 49 states to have liability coverage to drive a car legally.
Collision Coverage: Collision coverage is an optional insurance policy, but it is imperative to have as it covers the cost of car repairs for your car. No matter who is at fault in the accident, you can claim this policy if your vehicle is damaged in a collision accident.
Comprehensive Insurance: For the cost of repairs needed if your car is damaged due to earthquakes, falling trees, projectiles, fires, riots, vandalism, etc., there’s comprehensive coverage.
Comprehensive insurance is optional, but if you keep your car out in the open for more extended periods of time, then you should have this policy.
Uninsured Motorist Coverage: Mandatory in some states while optional in others, uninsured motorist coverage pays for the car repairs or medical treatments of the policyholder when the at-fault driver does not have liability coverage.
Personal Injury Protection plan: Personal Injury Protection plan covers the cost of medical treatments needed by the policyholder after a car accident, irrespective of whose fault the accident was. This policy is mandatory in 12 states and optional in others.
So those were all the different ways to shop for the best car insurance coverage to stay secure in a car accident. When it comes to making the intelligent choice in auto insurance, the cheapest is not the smartest option, but the most affordable and best coverage is.
Here are all the things to look out for in auto insurance and the ways you can shop for car insurance to get the best coverage at the lowest prices.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.