First of all, we have to define what we should be looking for. Probably, we could say that we successfully shopped for the best policy if it is cheap in comparison with the rest of the quotes for the same standard coverage and it comes from a reliable carrier. This article examines how you could make sure you have great value automobile insurance, rather than hoping and falsely believing that you have.
Some companies sell full coverage policies that are cheaper than liability only from others. They are legitimate and mainly down to competitiveness of the carrier, additional discounts and special offers. In other words, motorists can really have great packages from strong and economical insurers.
However, it is best to put it through some tests to confirm this is the case. It is worth having a close look at the policy and premium to ensure you will not face surprises when you have a claim and you don’t kid yourself with false beliefs. It is always ideal to examine these things before you need the protections because something happened.
Why Do You Think You Have Good Cheap Auto Insurance?
Sometimes, motorists may not have a real reason to be comfortable with their current carriers. They may have no clue how competitive they are. And they may not know if they would pay claims timely since they have never had one or needed to contact them for any troubles. The real reason may be that they are dreading to look into their policy details, call a few companies to get prices and arrange the switch. So, it would be easier to believe that they have great coverage, cheap prices and decent supplier.
Are You Convinced You Have Good Value Car Insurance?
You may actually be paying a pretty low premium compared to friends and colleagues. Should you just be happy and forget about it. This would be easier to do if you already have auto renewal in place. They will take the money out of an account or credit card and just carry on as it is until you say something. You are as happy as Larry, you think? Your policy may even be called fully comprehensive to make you even happier. So, what could be a problem?
What May Be Missing on Good Cheap Vehicle Insurance Coverage?
It may be no surprise to you to hear that each policy would have its own provisions, terms and conditions. These are the points you need to have a close look to see how satisfactory a deal you are getting. As it is understandable, you cannot compare a flimsy cover with a decent one. And most importantly, you should have enough protection. Here are the steps to check if you have outstanding value auto insurance.
First of all, all your needs should be met. If the policy you have offers less coverage as compared to a typical one in the market that is probably why the premium is lower as well. For example, you may have Liability, Collision and Comprehensive like everyone else. Nonetheless, liability may be the state minimum. You may think that it is great since you are totally legal.
However, you may not have the same enthusiasm to learn that most packages offer over ten times more liability limits, definitely not the basic. Anything less could put you in serious trouble in today’s world where there are a few cars on the roads with prices over hundreds of thousands of dollars. In addition, hospital costs for injured third parties can quickly reach at hundreds of thousands of dollars as well. People don’t buy liability to comply with the state laws. They buy because they want to be protected against third party claims. So, first thing to look at is how much of it you have.
There are a few other options and provisions but nothing as important as liability. The car will be insured at its open market value as usual. All you need to do is to check that the amount listed is right. Then, Collision and Comprehensive are going to take care of most things that may occur to it.
Next, you should make sure that you have whatever else you need. For example, you may be going abroad often with your car and you may want to make sure that it is insured in those trips as well. Some policies may exclude travels abroad, offer limited coverage or set a time limit.
Furthermore, many people make the mistake of thinking that full coverage will include courtesy car provision should yours be taken in for accident related repairs. This is not something that may bankrupt you but it is something worth checking.
Most established providers offer packages with many extras as standard. And lower priced ones may exclude a few of those. When you start adding them back on, the new quote may come higher than the packages that seemed expensive in the first place. What is important to ensure is that it doesn’t exclude the covers you need.
You should check if it comes with certain exclusions that may be burdensome or unpractical for you. Certain driver exclusions can make a policy look a lot more competitive. You just want to make sure that is not the reason why you are paying less. If it is, other companies would offer similar discounts as well that will make alternatives at least in line or more attractive.
Quite a few of them may exclude occasional drivers under the age of 25. This would mean that you cannot hand over the car keys to a teenager who is not listed. This would most likely be the case if you have a powerful sports car and it may cost you a few bucks extra to remove this condition. However, some are known to exclude all occasional drivers and only insure listed ones. This would reduce the risks substantially for them since they know everybody who is allowed to drive. It shouldn’t be a surprise if you are getting low car insurance rates in return.
Mileage limitation is another point to check. You may have agreed a low mileage deal a few years back. You have to make sure that it is not a condition anymore if you are traveling a lot more now. Also, you should check if driving other cars is included. Typically you should have liability coverage for driving someone else’s automobile.
There is nothing wrong with having certain exclusions as long as you know they are there and you can comply with them. Also, you understand that you had a trade off; you get to save in return for agreeing to them.
It is possible to achieve lower auto insurance rates by choosing higher deductibles. You should have a look at deductibles and what the others are offering. If deductibles are $1,000 and another company is quoting with $200 deductibles it is normal that yours should be more affordable.
You should also keep in mind that some may have varying levels of deductibles depending on the age and experience of the listed drivers. They may have increased deductibles for young, foreign and high risk drivers. You should check which deductibles apply to you and other listed names.
- Special Conditions
Certain special conditions can allow you substantial savings. For example, it may be a condition that you park the car in the garage most of the time. The discounts will be higher if you live in a rough neighborhood or have an expensive car. You just have to make sure that you still meet these conditions and you haven’t already turned the garage into a study.
- Extra Charges
Some companies may have an extensive list of additional charges. That is probably how they intend to close the premium gap with competitors. The problem is that most are not forthcoming with these charges and policyholders don’t ask the schedule. It could be as ridiculous as charging for every change you make to it.
Motorists would expect to pay additional premiums if there is a serious change on their particulars like changing the car or moving to a different zip code. But they shouldn’t normally pay additional fees for making the change. You should check if there are fees to make amendments to it and check the cancelation fees while you are at it. Decent vehicle insurance carriers don’t look for silly excuses to charge more each time a customer calls them.
As you can see there are a few points to check. But it is not hard to compare quotes with alternatives for price and protection. There is no doubt you can find cheap and good automobile insurance companies. However, there are a few policyholders who were tempted with low prices and ended up with less than desirable coverage. That is why it is worth checking it properly and knowing exactly what you are buying into.