Broker Check

What are important things to consider when purchasing auto insurance?

| February 09, 2023

When purchasing auto insurance, it's important to keep the following things in mind:

  1. Coverage Types: Understand the various types of coverage, including liability (both bodily injury and property damage), collision, comprehensive, uninsured/underinsured motorist, and personal injury protection or medical payments. Ensure your policy meets your needs in each of these areas.

  2. Deductibles: Your deductible is the amount you pay out of pocket before your insurance coverage kicks in. A higher deductible usually means lower premiums, but ensure it's an amount you can afford in the event of an accident.

  3. Liability Limits: These limits determine the maximum amount your insurance will pay if you're at fault in an accident. Minimums are often set by state law, but you may want to consider higher limits to protect your assets.

  4. Discount Opportunities: Many insurers offer discounts for safe driving, bundling multiple policies (like home and auto), maintaining good grades (for student drivers), or using telematics devices that monitor your driving.

  5. Company Reputation: Look at customer satisfaction ratings, claims service reviews, and the financial stability of the insurance company. A policy is only as good as the company that stands behind it.

  6. Your Vehicle: The make, model, and year of your car can impact your insurance premiums. Newer, more expensive cars typically cost more to insure, while safety features can often lower your premium.

  7. Personal Factors: Your driving record, credit score, age, and even marital status can affect your insurance rates.

Remember, the goal isn't just to find the cheapest policy, but to find a policy that offers the right coverage at a cost you can afford. It's always a good idea to compare quotes from several insurance companies and to review your coverage needs annually, or whenever your situation changes.