insurance agents lexington ky

How To Choose Car Insurance Policy That’s Right For You

When trying to figure out what car insurance policy is right for you, the process can seem a little stressful. In all but two states, it is required by law to have car insurance. Regardless if it is required or not where you live, it is always a good idea to have it on hand. The following are some great tips on finding that insurance company that will work best for your personal situation.

#1. Choose the right car

A lot of times when people go to purchase a new car, they only look at the price tag on the windshield, but not really think about the price the insurance is going to be. The more expensive and valuable the vehicle, the more the auto insurance is going to cost. According to AAA’s 2016 Your Driving Costs study, the average cost to own and operate an average sedan was $8,558 in 2015. If that is about right for your current situation financially, go for it. Do not go into the car lot not thinking about the costs a vehicle you want to buy can bring to you in the future.

#2. Do the research

Finding the first available insurance company and going with them for your car insurance is very inadvisable. Research is going to be your best friend on finding the best insurance companies for you to pick from. Depending on the state you live in, having some form of liability coverage could be legally required. This covers the other car and person in an accident, but not yourself. If you are looking for more to cover yourself as well there will be collision insurance for accidents and comprehensive insurance for damage your vehicle takes from objects that are not other vehicles. Find out if the company also provides for emergency roadside assistance in case you break down or look into gap insurance to your car’s depreciated value and the amount you still owe on its lease or loan. There are many different coverage options available and finding what works for you is essential to not overspending and making sure you have what you need. For example, you might not want personal injury protection if you have very good health insurance, but it could potentially also cover costs health insurance companies would not want to cover.

#3. Compare rates between companies

Car insurance companies that are worth the time to debate on will always provide a quote either over the phone or online. Be sure to look into what each company provides. Check rates from other companies to make sure you are getting the best deal. Keep in mind that even though an insurance company might offer the biggest discounts, it might also charge the highest rates. When shopping for insurance, focus on the final price after all discounts have been calculated. 

#4. Check your credit and set the right deductible

One of the most important decisions in choosing a car insurance policy is getting a good premium rate. A low credit score may impact your premium negatively. Be sure to pay off your credit bills on time and you will save quite a bit of money. Be sure to take advantage of any discounts you can. Some are available for students with good grades, being a genuinely safe driver and going without any accidents for a period of time, or even your age can play a part. Talk to the company and make sure you are getting all the discounts you are available to have.

#5. Choose between the best-rated companies

As with any company on the internet, there will be ratings on all car insurance companies. Companies with better ratings are much more likely to give you a better experience when filing claims, getting your claims approved in a timely manner or giving a genuinely good customer service experience. This is also the best way to weed out any potential scams.

If you take the time and get to understand exactly what it is each car insurance company is offering, you will be able to find the insurance that is right for your personal situation without overpaying.