Whether you are buying car insurance for the first time or switching companies to access a variety of different features, knowing which policy to choose can be daunting. Many car companies offer their customers mobile insurance apps that help them process claims more efficiently, but comparing policy prices can take a great deal of time, especially if saving money is your top priority. If you are ready to choose a policy, here are three questions you should ask a car insurance representative before signing on the dotted line.
1. How Does My Car’s Age Affect Collision Coverage?
Your vehicle’s age can affect how much you would collect if it was ever destroyed in an accident, so before you opt to sign up for collision, ask an insurance representative if it would be worth it you. This type of coverage can be beneficial and is an optional choice, although some lenders require that you carry it if you are still paying on your vehicle.
Paying for collision insurance does reimburse you for the value of your car in case of an accident, but if the deductible eats up much of what you will get back for an older vehicle, you may want to opt for carrying liability instead, which can lower the cost of your policy.
2. What Policy Length Is More Affordable?
Most car insurance companies allow you a choice when it comes to when you pay your premiums and how often you renew. In most cases, the choices are either every six months or annually. However, if your goal is to save money, then take a look at your driving record. If you have an excellent history, a policy that is reviewed every six months may result in lower premiums if your company offers safe driving rewards.
If you have points on your license that will not expire before the next premium payment, it may be a good idea to choose an annual policy until you can improve your driving record. Each company’s rules are different, however, so you may want to ask your insurance agency representative for details before you decide.
3. Does My Policy Cover Other Drivers and Passengers?
If you opt for personal injury coverage, it is important to ask who the policy covers in the event of an accident. Some policies only cover you as the insured, whether you are driving, are a passenger, or those who you list on your policy. Not being aware of who is covered can end up costing you thousands of dollars if an uninsured individual is hurt in a wreck and sues you for the cost of medical treatment.
While liability does offer coverage for those injured or killed in a car accident, depending on the state in which you live, it may only pay if you caused the accident. This is why knowing exactly who is covered and how if they drive or ride in your car is so important; being unaware of the details of your coverage can end up costing more than you ever thought possible.
As you shop for car insurance, do not be afraid to ask questions and seek comprehensive answers about individual policies. Not only can this help you save money on the cost of a policy, it may prevent you from paying out of pocket later.