Question:

What Do I Need to Know When Buying Auto Insurance?

Answer:

If the idea of buying automobile insurance leaves your head buzzing with confusing words like “deductible,” “liability” and “comprehensive,” don’t worry. A lot of people think car insurance is complicated, but it’s really not.

Here’s a list of questions you should be able to answer before you start shopping for car insurance to help you take the stress out of the process.

1. How much liability coverage do you need? Your state has minimum requirements for how much liability coverage you have, but don’t stop there if you can afford more. If your state’s minimums are pretty low (under 25/50/25) consider adding 10 to 20% in additional coverage. This way, you fully cover any medical or repair expenses if you are involved in an accident.
2. Do you need comprehensive and collision coverage? If your car is 5 years old or newer, getting comp and collision is a good idea. Also if you have a loan out on your car, you are likely required by your lender to carry both.
3. What kind of deductible should you choose? Choose one you can afford, but go as low as you can. Shelling out $1500 for a deductible down the road may be a financial burden you can’t afford, so try to go more around the $500 range. Or you can put that $1500 in savings and not touch it unless you need it for a deductible.
4. How do you want to buy your policy? If you’re tech savvy, you can shop for auto insurance right here on our site. If you prefer to work with an agent, find one locally and schedule an appointment.
5. What discounts are you eligible for? There are several different discounts that auto insurance companies offer, and you’re likely eligible for a few. Check with your insurer to see what they offer and make a list of the ones you think you qualify for.