5 Tips for Shopping for Auto Insurance

Posted by at 27 April 2020, at 12 : 01 PM

5 Tips for Shopping for Auto Insurance

You have saved for years, even decades, for retirement. And now that time has come, it’s more important than ever to spend money wisely. When it comes to car insurance, you want to find the coverage that is right for you. Even those who’ve been dealing with auto insurance for years can find shopping for car insurance stressful and sometimes confusing, but it doesn’t have to be. With the right know-how, shopping for auto insurance can be simple, and switching to a new policy could save you a significant amount of money.

1. Find Insurance Coverage That Is Right for You

When choosing car insurance, it’s important to understand the kind of insurance you need. You will want to find a plan that includes your state’s mandated coverage as well as the features that are important to you. Mandatory coverage can vary by state as well as the age and value of your car. Before you start shopping seriously, be sure to research coverage requirements with your state’s motor vehicle administration.

The main types of auto insurance coverage include:

⦁ Bodily Injury Liability– Liability insurance is required in most states and helps to cover costs related to the bodily injury of the victims if you are found responsible for an accident.

⦁ Property Damage Liability– This type of insurance pays for damage caused to another person’s property (usually their car) or public property if you are found at fault.

⦁ Uninsured/Underinsured Motorist Coverage– An uninsured or underinsured driver won’t have enough coverage to protect you in the event of an accident where they are at fault or if you’re the victim of a hit and run. This protection provides you with coverage to help pay for your costs.

⦁ Comprehensive– Comprehensive insurance provides an additional level of coverage for damage that may occur in non-accident situations. These can include vandalism, natural disasters, theft, glass damage, or an accident involving an animal.

⦁ Collision– Collision insurance will help repair or replace your vehicle after a collision, regardless of who is at fault. This type of insurance also covers damage to your vehicle caused by potholes.

⦁ Medical Payments/Personal Injury Protection– Medical payment coverage, also known as PIP, can cover the medical cost for injuries sustained by yourself or your passengers in an accident regardless of who is found at fault.

Take a closer look at your policy options. Think carefully about what’s necessary protection in your circumstances. If you have good health coverage, additional coverage through your auto insurer may be unnecessary. Also, if your car is an older model, perhaps collision coverage is not an investment you need to make. Take the time to investigate which options make the most sense based on your needs.

2. Set the Right Deductible

Taking a look at your deductible can be a sure way to save money when evaluating car insurance costs. Policies with higher deductibles have lower premium costs because you pay more out of pocket for claims. If you currently have a low deductible, have a good driving record, and are able to pay more out of pocket, a higher deductible may be a wise choice. Just be sure that the deductible you choose is one you can afford should something unforeseeable happen.

3. Take Advantage of All Available Discounts

So many people miss out on insurance discounts simply because they don’t know about them. When shopping insurance providers, be upfront and ask about specific discounts. Some discount options to inquire about include:

⦁ Technology Installation– A tracking device installed in your car to record mileage and driving habits may qualify you for a discount. By driving safely and driving less, you could earn lower rates. Also, if your car doesn’t have a built-in tracking system, installing a security device in your car can bring down your insurance costs. Most companies offer discounts when a location device can track your vehicle if it’s ever stolen.

⦁ Association Membership– Membership in retiree associations such as AARP can provide access to promotional pricing options. To receive the discount, you simply apply with the insurance provider by presenting your membership information.

⦁ Driving Courses– Safety or defensive driving classes often earn a policy discount. Online or classroom courses are often offered through retiree associations and most insurance coverages.

⦁ Bundling Your Policies– Many companies offer special prices for joining policies like auto with homeowner or renter’s insurance. And if you have more than one vehicle, take a look at insuring them with the same insurer. Many offer multi-car discounts. Talk to your provider to see which options might work for you.

⦁ Maintain a Clean Driving Record– A good driving record benefits you and the insurance company. Discuss the discount options available if you have a clean driving record and haven’t had an at-fault accident in years, if ever.

4. Keep Track of How Often You Drive

A major component of insurance rates is the number of miles you drive in a year. If you have stopped commuting and are driving less than you have in the past, let your provider know. If retirement has changed your driving habits significantly, this may be an easy way to find lower car insurance costs.

5. Compare Prices

Comparison shopping can take a little extra time, but it can help ensure you don’t overlook possible savings that could add up to hundreds of dollars a year. Get at least three different auto insurance quotes, and be sure to check both national and local companies. Compare quotes to find a policy that fits your budget and the coverage you need.

Shop Smarter, Not Harder

Don’t let yourself be overwhelmed by all the insurance options available. Take the time to shop smarter by following these simple tips, and you’ll have no difficulty finding the right auto insurance policy for your years of retirement.

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