Financial Literacy: How to Shop for the Best Auto Insurance Rates
Whether this is your first car or your fifth, there’s always something to learn about getting a great deal on your auto insurance. There are a lot options out there and it’s up to you to brave the insurance wilds and come back with your finest policy find.
Well, you don’t have to do it alone, here are 3 tips for hunting for the best auto insurance rates:
Educate yourself before buying
This might be a little harder to do when you’ve never done it before but insurance is like everything else: sometimes there are just too many choices. So if you can do some reading before actually beginning your search, you’ll be much better prepared to manage the questions coming your way.
Here are a few insurance options:
Personal Liability/Property Damage (PLPD) insurance is very basic insurance coverage that essentially protects the other guy on the road. So if you get into an accident and it’s your fault, your insurance company will pay for the other person’s damages. It doesn’t cover your car for anything, so if the collision is your fault or the other driver doesn’t have proper insurance, you’re on the hook for repairing your vehicle.
Collision Coverage is a better bet if you are driving something more expensive. If there is a collision, your vehicle will be covered regardless of who is at fault. This is a really good route to take if you can’t afford to replace your vehicle. You will pay more in premiums for this worry-free privilege but it’s good for peace of mind.
These are just two examples of insurance coverage and these may vary, depending on your province and auto insurance regulations. Do your own research and find the protection that’s right for you, as well as the best auto insurance rates.
Find the best auto insurance rates online
There are some great places to get the best rates on insurance. Plug in your information and you’ll get quotes from a few different companies that you can compare at your leisure. The beauty about shopping like this is that you don’t have to jump between five different company websites to get a quote; it’s all right there in front of you.
When you find the quote that you like, click through and get the company you want, no fuss, no muss. Fill out the form and they’ll email you right away and put you in touch with an agent.
Pay attention to the details
If you do all your shopping online and submit your information to a company, a representative will call you to walk you through the rest of the process. Here’s where you close the deal:
- Do save money on premiums by raising your deductible to $1,000. That means you have to come up with that money if you’re at fault in a collision, but you’ll save on your insurance rates.
- Do buy the right amount of insurance for you. If your car is worth $1,500, paying an extra $800 a year for theft coverage may be overkill.
- Do be thorough in your description of its condition. If you get into a collision and the mechanic discovers damage from a prior incident, the insurer may make you pay for a portion of the repairs.
If you are honest about the situation, and if you are careful to shop around, you should be able to find the best auto insurance rates.