These days, the most common way to get car insurance is to use an easy and convenient method, such as a direct quote online, or with a price comparison tool. Rarely do people go through an agent anymore – this might be because, with all the tools available to consumers, it simply isn’t necessary any more.
That said, when shopping online for auto insurance, there are a few things you should keep in mind in order to get the best deal. The main point to remember, however, is to do your due diligence to get the best price.
Car Insurance: Reasons Why Shopping Around is the Best Plan
It Saves You Money
When insurance companies need to compete for your business, you save. When their prices are stacked up against each other, the best deal will shine like a newly polished gem. Companies will want to edge each other out to look the best for the customer – you!
Put simply, shopping around reinforces the competition in the market. It also reassures you that you’re getting the best deal, because you’ll be aware of price changes and competitor rates.
It Gives You an Understanding of the Insurance Marketplace
Even if you’re new to shopping for car insurance, the act of shopping around will quickly give you a quick course on the ins and outs of the process.
Among other things, you’ll learn about types of insurance, deductibles, premiums, pricing, policy options and limits. You’ll get comfortable with these terms and the lingo, so that the next time you shop, you’ll be even more savvy about scoring the best deal with the coverage you need.
It Lets You Move Through the Process at Your Own Pace
Shopping around for insurance online is perhaps the most low-stress way to find the best, most affordable coverage.
Firstly, no one is trying to sell you anything directly, which means you won’t face pressure and the stress of quick decision-making. Secondly, you get to go at your own pace. You can look through your policy options as carefully as you want, and even put the process on hold and come back to it later.
All of these things might mean you’ll make a wiser, more well-informed decision. Plus, if you do find that you need help, you can still call up an agent.
Tips for Shopping Around for Auto Insurance
Keep Your Personal Information Handy
You may know some information off the top of your head, such as the make and model of your vehicle, your address, date of birth or your Social Security number, but you will need additional information when shopping for car insurance that you will want to keep at hand.
Examples include your auto insurance history, the year of your vehicle, your license status, and the personal information of any other drivers you want to be included on the insurance policy. Keeping this information readily available will speed up the process, especially when you need to enter it into a price comparison tool.
Understand the Different Types of Coverage
If you don’t understand the type of auto insurance coverage you’re getting, you may be spending more money than necessary. Read up on the various types of coverage and decide which are essential and which are not.
Basic types of car insurance coverage include the following:
- Comprehensive coverage: This type covers you in any situation unrelated to a traffic accident. Weather, natural disasters, vandalism and more all qualify.
- Collision coverage: Get collision insurance in order to cover your own damages in a car accident.
- Uninsured or underinsured motorist coverage: In an accident situation where the other driver doesn’t have adequate car insurance (or any motor insurance at all), this type of coverage protects you.
- Personal injury protection (PIP): Regardless of who’s at fault in a traffic accident, PIP pays for lost wages, medical expenses, and other costs associated with the incident.
You should never settle for the first quote you get when it comes to car insurance. This is because the industry is competitive – providers don’t keep their prices at the same rate from year to year in order to stay relevant in the market.
This means you need to look around at different prices and quotes and compare and contrast what they offer. The best deal for you may require a bit of digging in order to find it.
Keep Credit in Check
When shopping around for insurance, don’t forget to look at your credit and check the state of your score. Make sure there are no errors in reporting, and give yourself plenty of time to get errors corrected in case you do find some – it can take as long as two months for these to be investigated and fixed.
Also – and this may be a no-brainer – it helps if your credit is at least in the “good” range. Anything less, and you will not get the best deal.
Use an Auto Insurance Price Comparison Tool
Shopping for insurance can be a lot easier if you use a comparison tool. These tools let you enter your basic information and then present a variety of auto insurance quotes from different companies, side-by-side. This lets you quickly see who’s offering the best prices without having to click through a maze of websites.
A comparison tool also lets you test how adding various policy options changes your quote. You can play with your options and the price to your heart’s content without having to commit to anything. This is incredibly useful for finding the best balance between price and options.
A great place to get quote comparisons and find the best deal for your insurance is at ABCO Insurance. With us, you get a comparison of 25 different insurance companies, so you’re sure to find the best quote that fits your needs at the right price. When it comes to car insurance, we give you options, not to mention the power of choice.