Car insurance is a necessity in this modern life. You may not need to use the insurance money that you are paying in installments, for years together. But it takes less than the wink of an eye for a dreadful accident to occur. In such times, your insurance cover will take care of all your needs. So if you do not have a car insurance and are planning to go for one, we will tell you all about how to buy car insurance. Also, there is a great advantage these days because the internet has made it very simple to compare number of insurance plans. You just need to know the basic set of information.

How To Buy Car Insurance?



Things to keep in mind while buying an insurance cover:

1. Decide the amount of coverage

The amount of insurance cover needed varies from person to person. Also, the rates of cover differ in each state. Analyze your requirement carefully. If you are buying insurance for the first time, it will be helpful if you go through the guidelines given by National Association of Insurance Commissioners. You can note the different types of insurance coverage that suit your needs.

It is recommended that you opt for an insurance which has the liability of 50,000 USD for body injury to a single person in an accident, 100,000 USD for all the people and 25,000 USD liability for property damage. Facts like your driving habits, time taken for commute and whether you have a lead foot or not should also be taken into consideration, while buying car insurance.

2. There are two types of insurance

  • Collision insurance: This type of insurance covers the damages that occur during a collision with inanimate objects like fence, light-post, tree etc.
  • Comprehensive insurance: This type of insurance covers the damage that did not occur due to any collision such as fire, flood, theft etc.

You can buy both types of insurance. But if you have a good record in driving, without collisions, then you can just go for the comprehensive type.

3. Keep a track of your driving record

You should keep a record of all the speeding tickets that you had in past few months. If you do not remember, you can contact motor vehicle department of your state. A bad driving record will negatively affect the price of your insurance.

4. Analyze your current policy

Go through your current policy carefully. You can also contact the insurance company and extract necessary the information. Note down the amount of coverage that you already have and the amount you are paying for it. Note down the cost of insurance that you are paying monthly and yearly.

5. Seek the competitive quotes for insurance

Devote at least one hour from your schedule to shop for the insurance policy. Keep your vehicle registration, driving license and your current insurance policy handy. Go to various sites online, submit the necessary information and get quotes from various sites companies. Make a proper list of all the companies and their quotes that are suitable to you. Also, look for the sites that are suggested by your family members and friends.

Remember, all the sites do not give you the quotes instantly. Some of them are not direct service providers, so they will contact you through some local agent, later on. Some companies do not instantly give the quotes, but will get back to you through e-mails.

6. Accumulate quotes and information from the companies

It is important to make notes when you are doing the research work. It will help you to make quick and right comparisons. For notes, you can make a list of the following:

  • Monthly and annual rates of all the coverage that are within the same range of cost and coverage.
  • Telephone number of the insurance companies, in order to be able to contact them if you cannot get sufficient information from the internet.
  • Payment policy of the insurance company, Due date of the payment, Types of payment plans, Consequences of making late payments.

 7. Make calls

After you have gathered information from sufficient companies, start contacting those companies which did not provide quotes online. You should keep your registration number and driving license number handy while making calls. Also, confirm the final price by requesting the representative to send you the quote through e-mail.

8. Search for the discounts

Keep a note of the discounts offered by all the insurance companies, when you are researching. Many insurance companies offer discounts for safety equipments in your car, good record of driving, high-grade point average of young drivers etc. Some companies have the provision of paying lower cost under the scheme of “pay as you drive”.

9. Research the record of the insurance company

By now, you may have all the necessary information about the coverage and price of various insurances and you will be ready to decide. But keep in mind that cheap does not mean reliable. You should not buy insurance solely on the basis of getting a cheap deal. Financial soundness and the treatment given by the insurance company in a situation of a claim, play a critical role in getting the right type of insurance.

You should check in the following places to get a clear idea of track record, customer service and financial stability of the insurance company:

  • Department of insurance of the state
  • National Association of Insurance Commissioners’ Consumer Information Source
  • Check the ratings of the company from Standard and Poor’s and A.M. Best.
  • Consumer Reports and J.D. Power provide reviews from other clients.
  • Ask trusted member of the family or friends about their experiences with a particular insurance company.
  • You can also contact an individual insurance agent for getting the required information.

 10. Before signing, review the policy

When you have made your decision about which policy to buy and from which company, go through each point of that particular policy, thoroughly. Be sure to look for the terms when you have a new car. Some companies do not pay for the original manufacturer parts. So it will be difficult to get the payment, in case of an accident, later on.

11. Cancel the previous insurance policy

After getting the insurance from the company that you desired, cancel the previous insurance policy. You will need a proof of the insurance to present it to the state. So be sure to carry the necessary proofs with you.

These were 11 quick tips on how to buy car insurance. When you buy insurance, try to maintain a balance between the financial and quality aspects of your insurance policy. If you have any suggestions or query, feel free to drop them in the box given below.