If your heart races at the mere mention of “shopping,” your heart rate probably slows to a life-threatening pace at the statement of “shopping for car insurance.” Even now, your eyes are already beginning to glaze over. That surge of energy you felt at the thought of visiting your favorite shops have soon dissipated under the mind-numbing exercise of shopping for insurance quotes.
The fact remains that as dull as this stuff can be, it’s crucial. Sure, you don’t want to end up as a headline- “Uninsured Motorist Causes Serious Injury,” and since the right insurance company isn’t going to show up on your front door. You have to look for it.
Do Your Research and Save On Car Insurance
Maybe this headline will grab your attention- the right car insurance can save you hundreds or thousands of dollars a year. It takes a few minutes to compare. One of the authors who contributed to this article put aside their lethargy long enough to find the best price.
The conclusion? Affording basic coverage for two old cars ranged from $1,006 to $1,807; that’s $801 per year. If it’s been a while since you’ve comparison shopped, take a few minutes to do it because it could save you a lot of money. If you need a little more incentive than the mere thought of saving $801, think about how much that $801 can buy.
Read: GAP Insurance
Shopping for car Insurance: How to Find the Best Car Insurance For You
- Determine the amount of coverage you need and what minimum requirements exist in your state.
- List the multiple types of coverage you’re eligible to buy.
- Once you know the minimum amount of coverage you need, pick what else you want to add to it.
Insurance companies love people who think in worst-case scenarios, and This means you’re going to try and compensate for any potential risks. Insurance companies have “actuarial tables” that measure your factors against decades of data to determine how likely it will be for you to hurt yourself or for your car to get stolen.
Remember that while insurance companies assess the risk of you filing a claim, they operate from the premise that you will not get into an accident. You buy car insurance, thinking that at some point, you will get into a car accident. So the car insurance company is willing to insure you to prove you wrong.
How Do I Know What to Buy Beyond the Minimum State Requirement?
Here is an example to help you decide. Let’s say that you have $50,000 of bodily injury coverage and have $100,000 in assets when you get into an accident where you at at-fault. Another party can go following your assets if their party’s medical expenses exceed $50,000. Something else to consider- your uninsured and underinsured motorist coverage can’t be higher than the limits of your liability coverage. This form of coverage benefits those who can’t immediately return to work after an accident due to serious injury. Consider your record. If you identify that you have a history of fender dents and cannot help drive aggressively through rush hour or scenic traffic, buying comprehensive protection on windy roads can help you sleep better at night.