8 questions to ask before buying car insurance

8 questions to ask before buying car insurance

Make sure your car's coverage reflects your needs and budget

Car insurance

The car you own, your personal priorities and budget are all factors in your unique car insurance needs. Before comparing policies and insurance companies, evaluate how you use your car and the risks you face to see which options work best for you.

1. How much do you drive?

Do you need your car every day, for example, to go to work or drive children to school and activities? Do you drive 100 miles a month or closer to 1000 or more? Make sure that your policy reflects the amount of use Car. If you don't drive much, you may want to choose mileage-based insurance.

2. Will your car be used at work?

If you use your car not only to get to work, but to perform tasks that get paid, commercial car insurance is a necessity. The personal car policy will not provide coverage if you transport passengers who pay through a ride-sharing service, pizza delivery, driving as a builder or using your car for other business activities.

3. What kind of car are you driving?

Insurance companies have mountains of data, and they know in exact detail the types of cars, manufacture and models most likely - or at least - to withstand claims. A flashy, powerful-engine sports car may be more likely to be stolen and the chassis costs will be more than a mid-size sedan - and your insurance will be priced accordingly. Some types of cars - such as modified or classic cars - require special insurance. By the same token, you may get discounts if you have a "safe" car - a car with the latest safety features and a good safety record.

4. How much do you like your car?

If you like the way your car looks and prides itself on its look, you'd likely want to fix it perfectly - or replace it with the same model - if it's damaged. This means you'll probably consider the largest range of insurance - including collision, universal coverage and glass. On the other hand, if you drive a racket, see cars only as transportation and want to provide insurance premiums, you may prefer to limit your insurance policy to liability.

5. Where do you live?

Where you live will affect your insurance prices - and it may be a factor in what your purchase coverage is. For example, cars parked on urban streets face a greater risk of theft or vandalism, so universal coverage may be a good option. You may discover that your premium rates are lower if you move from city to suburb.

6. Who else will drive?

In general, your car insurance will sometimes cover other drivers. However, if other drivers live with you and use your car - whether it's a spouse, a teenage driver or a housemate - they should be included in your insurance policy.

7. What are your legal obligations?

Almost every state requires that you carry minimum liability coverage for your car. At the very least, you need to make sure that your policy complies with state mandates. However, the required coverage levels are generally low. Keep in mind that if you are involved in a serious incident, you may be sued for a large amount of money. Depending on the assets and the financial risk tolerance, to be safe, you probably want to buy a higher level of liability coverage.

8. Is your car funded or rented?

If you still owe money on your car or have to return it in good condition when the lease expires, you're likely to be asked to insure the car for its full value - and even for any gap between what you owe And the market value of the car. The collision and comprehensive will cover the damage to your car - and the supplementary gap insurance will cover the rest.

Keep in mind that your insurance options and costs will also be affected by your age, gender and driving record. Also be aware that your credit score can also affect your insurance rates. Once you look at your needs and priorities, and understand how insurance options match them, you'll be better prepared to make an informed decision about the types and levels of coverage to buy.

Now that you know your needs, here's how to choose an insurance company.

Encouraging positive behaviors

Car insurance companies offer discounts or discounts to:

Students who maintain at least the "B" average at school

Teenagers taking a recognized driver training course

College students who go to school at least 100 miles from home and don't bring their car to campus.

Choose the right car insurance company

It's generally less expensive for parents to add teens to a car insurance policy than it is for teenagers to buy one on their own. By securing your teenager's car with your insurance company, you may also be eligible for a multi-vehicle discount. However, insurance companies differ in how young driver policies are priced, so do some price research to make sure you and your teenager find the best fit.

Set your teenager to the right car

Learn how the insurance company hires drivers for cars - some insurance companies will assign the most expensive insurance driver (generally adolescent) to the most expensive car for insurance. If possible, set your teenager to the least valuable car.

Note that with this type of arrangement there can be no exceptions; Your teenager should only use the car to which he or she is assigned, even in an emergency. If your teenager has an accident with an undedified car, penalties can be imposed and your insurance premiums may increase.

Increase your liability insurance for more protection

If your teenager has an accident, the minimum liability insurance will not be sufficient to fully protect you from lawsuits. Think about buying higher amounts of liability coverage - if your teenager is found negligent in an accident and the damages exceed your insurance limits, you will be held financially liable and you can be prosecuted in court for those Amounts not covered by your insurance. Depending on the value of your financial assets, you may even want additional protection provided by the Comprehensive Personal Responsibility Policy.

Raise your discount to save on your premium

The more your discount, the more money you can save on your premium, so consider raising your discount from the minimum amount required. You may want to use these savings to increase your liability insurance.

Next steps: Learn more about securing your child who is out of school.