Buying car insurance can seem daunting, but you can often take steps to make it a little easier. First, decide what kind of insurance coverage you are going to need.
There are different variations from state to state on the minimum insurance you must carry, so your first goal is to meet this minimum requirement. From there, you can choose what kind of coverage you need. If you have a lot of assets, liability insurance is a must.
Bodily injury liability insurance is also important, as medical bills can be expensive. General recommendations for insurance state that you should get at least $250,000 in bodily injury liability for one person injured in an accident, $500,000 for all people injured in an accident, and $100,000 in property damage liability.
When considering your insurance coverage, you should also consider other factors like how good of a driver you are and how far you have to drive for your daily commute. Once you have a general idea of what insurance will be the most important in your following policy, review your current policy to see how much you are paying and how much coverage you are already receiving.
Also, look at your driving record – if tickets you received are about to disappear from your driving record, wait a little longer to get a quote, as this will affect your insurance quotes. Look around when getting quotes; many websites offer free online quotes. To complete this task, you should have your current insurance policy, driver’s license number, and vehicle registration. Once you have gathered this information, you can compare your potential annual and monthly rates.
Call the companies as well, work out your options, and try to see if there are any discounts you might be able to receive – often, if you are a driver with few tickets, there are “good driving discounts” you can receive, and young drivers have the opportunity to use their higher grade-point averages as a discount on their insurance. Once you have selected a policy, review all the details before you sign, including what parts will be available when your car has been in an accident and how long it will take the company to pay for such damages.
Finally, once you have secured your new auto policy, you must cancel your old coverage. Remember to carry proof of your car insurance in your wallet or glove compartment, and you are good to go!
Don Westerfeld has been active in the field of Insurance and Financial Planning since 1997. Don grew up in Indiana later moving to Lakeland Florida where he continues to reside with his wife and children. When he’s not in the office you can find him enjoying the great outdoors. He has served on several charitable business and non-profit organizations and continues to provide guidance, advice and support to local charities.
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