7 Tips for Choosing Auto Insurance
You might feel like you’re at the mercy of the insurance companies when shopping for auto insurance, but the reality is that you wield a remarkable amount of power. You get to make the decision about which company will win your business – and this power gives you the upper hand. In order to make the best auto insurance decision for you and your family, there are 7 critical things that you can do to ensure that you’re as happy after the sale as you are when you initially make your decision.
1. Know ahead of time what kind of coverage you need – Most people know better than to go grocery shopping on an empty stomach lest they fill their shopping carts with things that they don’t need. To keep themselves honest, the vast majority of people will utilize a shopping list to ensure that they get only what they truly need. The same holds true when shopping for auto insurance. Knowing in advance what specific policy features you want can help you to avoid loading up on “extras†that can significantly increase your insurance premiums.
2. Shop the market for multiple offers – When buying auto insurance, the first quote you get might be the best one. Then again, you might be setting yourself up to overpay by a substantial amount of money. Finding a good insurance broker that can shop the market and bring you multiple auto insurance rate quotes can help you to obtain the best coverage possible without breaking your budget.
3. Compare apples to apples – Carefully compare the quotes you receive, but be careful to ensure that you’re making a fair comparison. Because differences in deductibles, level of coverage, and additional policy features can significantly impact how much your auto insurance will cost, you will be best-served by requesting quotes with substantially similar information. Then a simple cost comparison can be made to ensure that you’re getting the most economical auto insurance policy.
4. Ensure that you’re dealing with a reputable insurance company – While there are thousands of auto insurance companies, not all are licensed to do business in Texas. More importantly, all insurance companies are not created equally. To ensure that your insurance company will stand behind their product in the event of a claim, check with the Texas Department of Insurance. They will have relevant statistics about the financial strength, claims-paying ability, and regulatory history of all insurance companies licensed to market auto insurance in the state of Texas.
5. Customer service is important – Don’t forget to investigate the customer service record of any auto insurance company with which you are considering doing business. It’s one thing to offer a great rate; being accessible in the event of a claim is another thing entirely. How will you contact the insurance company? Do they have a toll free customer service line, the ability to correspond via email, and access to insurance policy information through a corporate website? Knowing how customer service works – and the quality of that customer service – is critical to ensuring that your auto insurance needs are met.
6. Look for Special Discounts – Most insurance companies offer discounts for a variety of reasons: paying your premiums semi-annually or annually, having a good driving record, being a good student, or for purchasing multiple lines of insurance – among others. Ask what discounts are available and what steps you need to take in order to qualify for them.
7. Do you need access to a local agent or will a virtual insurance company best serve your needs? – While many insurance companies maintain physical offices in Texas, there’s a new type of auto insurance company springing up in Texas: virtual insurance companies. These companies don’t have the overhead costs associated with staffing multiple offices, paying agents, etc. As a result, they can pass these savings on to you, which can result in substantial premium reductions when compared to auto insurance companies that have a physical presence in Texas. Customer service, accident claims, and other issues can be handled by telephone or online – and you are able to reap the savings that this exciting new business model offers.
While there are many things that you can do to ensure that you get the right auto insurance policy to meet your needs, following these 7 tips can go a long way towards ensuring that the policy you purchase is the right one – for all the right reasons.