Many factors go into auto insurance decision making. Not only do you have to consider your premium, but you also need to decide what kind of coverage you need and how much to purchase. All of these things make it difficult to buy a car insurance policy.
Fortunately, you can better prepare yourself for car insurance shopping when you evaluate your personal priorities. In addition to calculating your budget, you should ask yourself eight questions to which policy options are best for you and your needs.
1. How Many Miles Do I Drive?
If you’re a stay at home mom or telecommuter, you might not put more than 100 miles a month on your car. However, you could easily put more than 1,000 miles on your car every month if you have a long commute to work. It’s important that you find an insurance policy that reflects the miles that you drive. For example, a mileage-based insurance would be a great option for low-mileage drivers.
2. What Do I Use My Car For?
You need to consider how your car will be used in order to find the proper coverage. If you are simply driving to work or using your car for personal reasons, a standard car insurance policy should be fine. However, you may need to get commercial insurance if you use your vehicle for rideshare, delivery, or any other tasks that you get paid to complete.
3. What Kind of Car Do I Own?
The type of car that you own can have a huge impact on your insurance rates. Not to mention, it impacts the type of coverage you require. Any modified or classic cars require special insurance. If you have a sportscar, you might not need a particular policy, but you should expect higher rates since your car is more likely to be stolen or damaged. On the other hand, customers with “safe” cars can usually enjoy discounts for safety features.
4. Where Do I Live?
Your location can also affect your insurance rates tremendously. People in urban areas are more likely to be victims of theft and vandalism, so they spend more money on car insurance. Customers in rural or suburban areas typically have lower insurance rates. While you might not be able to control where you live, you should keep in mind how your location can impact your insurance policy.
5. Where Do I Park My Car?
Do you often park your car in the street? Do you keep it in a garage? Where you park your car can also be a risk. If you live in area where you park on the street, you also have to worry about other drivers hitting your car along with the risk of theft. If you don’t have a garage, your car is also susceptible to damage from hail, fallen branches, and more, so we recommend upping your comprehensive coverage.
5. Will Anyone Else Drive My Car?
Most car insurance policies cover occasional drivers, but you should make sure that frequent drivers are all listed on your policy. A frequent driver could be anyone who lives with you and borrows your car often. They could include a spouse, teenage children, roommates, and more.
6. How Much Do I Love My Car?
If you drive an old car and don’t care about its appearance, then you could buy the bare minimum insurance policy. Full coverage insurance would be better suited for anyone who loves their car and take pride in caring for it.
7. Do I Own My Car?
Leases and financing are great options for acquiring cars, but they can impact your auto insurance policy. You may be required to insure the car for its full value or the gap between what you owe and its current market value. This insurance is called supplemental gap insurance since it goes along with your collision and comprehensive coverage.
8. What Are the State Requirements?
Every state has its own rules and regulations for car insurance. It is up to you to research and find the minimum liability coverage for your vehicle.
Request a Auto Insurance Quote
Now that you know more about your car insurance needs, you should be able to find a great policy. We suggest that you start out by getting a car insurance quote from several companies with similar coverage levels. By doing so, you can get a fair comparison and find the right option for you!