5 Tips: How To Shop For Car Insurance

Nobody likes to think about having a wreck in his or her car, but the reality is, it will probably happen. It may be your fault or someone elses, but either way, it is a hassle, especially if your insurance company gives you trouble. You want good insurance, but you don't want to overpay for it, so doing your homework is always a good idea. Many people don't take the time to shop around for the best price, but the price is just one consideration.

1. Consider Liability Limits

For instance, if you have a lot of assets that are debt-free, check your limits of liability. If your assets are greater than your liability coverage, you can lose everything if a bulldog attorney sues you due to an accident. Inquire about coverage for uninsured motorists that might impact you. Do not just find out if you have this coverage, but find out the limits that are paid out should someone with no insurance hit you.

2. Go Quote Shopping

So you decide to shop around for the best quotes, the next decision is whether to go direct to an insurance company that sells online like GEICO or Progressive. Your other option is to go with a company like State Farm that uses agents. Personally, I prefer to have an agent I can talk to should I run into an issue of some kind. I want someone who appreciates my business and with whom I have a relationship with, but that is a personal decision you should make. My agent shops multiple insurance companies to get me the best rate. You can often save money by having an agent shop all your insurance needs, including home, life, auto, and health.

Make sure that you compare apples-to-apples if you are going to shop insurance companies for quotes. Do you have rental coverage if you have to put your car in the body shop? Can you use the body shop of your choice? Does the insurance company use original equipment parts, or do they use used or aftermarket parts?

Just to see what the differences can be in rates, I went on one of the websites that allows you to shop multiple insurance companies at one time. You only fill out one form, so all the companies get the same information, and I used my actual information. Within a couple of minutes, I had two immediate quotes by email. Both were name brand companies. One was $190.50 per month, the other $101 per month. That is an annual difference of $1086 per year. Many would just jump on the low quote and be done with it, but that is a mistake without knowing the full level of coverage. For instance, neither told me what deductible the rate was figured on.

3. Check Complaint Records

Remember that the best price may not be the best deal. Every state has a department of insurance that has oversight power, and most keep stats on complaints. This is invaluable information to have. I would avoid insurance companies that have a poor record of policyholder satisfaction; this can save you time and money.

4. Ask Dealer For Recommendations

One thing I recommend to save you grief down the road' if you have a dealership you have a relationship with, talk to their collision center manager and get their recommendation of an insurance carrier. They know the ones who allow them to repair cars properly, and they know the ones who want them to cut corners.

5. Beware of Online Forums

Last, don't get too wrapped up with forums on the Internet. It is like trying to see what car owners say about their cars; only the unhappy customers take the time to make postings.

Be smart, compare not only rates but also coverage limits, and make an overall smart decision instead of just looking at prices.

Buying Car Insurance for the First Time

Insurance Basics for New Drivers

Arguably one of the cheapest ways for a new driver to get insured is by being added to an existing insurance policy, like your parents. You’ll likely get discounts for a multi-car or multi-driver policy. It could also be a good solution if you’ll be sharing a car with another driver at home. If your family’s home is insured with the same insurance company, this could mean additional savings.

Sometimes this isn’t a feasible option, and that’s okay. When it comes to buying car insurance on your own for the first time, it is a good idea to shop around and get quotes from several insurers. Understanding the different types of coverage will help you find the right policy that gets you the coverage you need and fits your budget.

Car Insurance Coverage Types

At the core, car insurance is financial protection for the risk of car damage, property damage or bodily harm. There are several types of car insurance that all cover different risks.

Liability Coverage

One of the most common coverages included in car insurance is liability coverage. In most states (except New Hampshire) liability coverage is required by law. There are two types of liability coverage – bodily injury and property damage.

Bodily Injury Liability Coverage

Bodily injury liability coverage, sometimes called BI, protects you financially if you harm another person in an at-fault accident. It may be able to cover their medical bills and injuries from the at-fault accident.

Property Damage Liability Coverage

Property damage liability typically covers qualifying repairs for the other party’s property that was damaged in an at-fault accident. This may include damage to their vehicle, yard or house that resulted from the at-fault accident. But what about damage to your car in an at-fault accident? This is where comprehensive coverage comes in.

Comprehensive Coverage

Comprehensive coverage typically covers damages from:

• Extreme weather: hail, wind, fire, floods, etc.
• Falling objects, like branches or trees
• Collision with an animal
• Acts of vandalism or theft.

Collision Coverage

Collision coverage is more straightforward. It usually covers damage to your car from a collision with another vehicle or object of some kind. If you hit a telephone pole or rear-end the car in front of you, in most cases, you’d fall back on collision coverage. If you leased your car or financed it in some other way, collision coverage is usually required by your lender.

Full Coverage

You might also hear about something called full coverage. It’s not an actual coverage type but is essentially a name for a combination of coverages. Full coverage can vary depending on how the insurance company defines it, but it typically describes a policy that includes liability, collision and comprehensive coverage. Full coverage, as the name describes, offers the most coverage, but is also usually more expensive than liability coverage alone.

Uninsured / Underinsured Motorist Coverage

Although most states require liability insurance by law, there’s still a portion of people who drive without car insurance. Uninsured or underinsured motorist coverage (UM / UIM for short) provides financial protection where the at-fault driver doesn’t have enough insurance to cover your damages (underinsured) or doesn’t have insurance at all (uninsured).

These are the most common types of coverage, however, there are a few other types of coverage you should be aware of.

Other Coverage Types

In some states, these coverages are optional add-ons to your policy. However, in other states, they are required. Find an independent agent near you to discuss what coverages are required in your state.

Personal Injury Protection

Personal Injury Protection, sometimes called PIP, normally covers medical expenses, lost wages and even childcare fees. This type of insurance can also be known as no-fault coverage.

Medical Payments Coverage

Sometimes abbreviated as MedPay, this coverage option typically pays for any medical costs after the accident, no matter who was at fault for the car accident.

Gap Insurance or Auto Loan / Lease Coverage

Guaranteed Asset Protection coverage, sometimes also called Auto Loan / Lease coverage typically covers the difference between what you owe on a vehicle’s loan and the depreciated value of the car your insurance company may pay in a claim. Essentially, if you total your car, but still owe more than it’s now worth, gap insurance would usually cover the difference.

Once you understand what each type of car insurance covers, it’s time to pick your deductibles and coverage limits.

Choosing Deductibles and Limits for New Drivers

Your coverage limits are the maximum amounts your insurance would pay out as the result of certain accidents. You choose what limits you’re comfortable with when you buy your policy, however, most states have legal minimums you’ll need to meet or exceed.

What do the three numbers mean in car insurance?

Liability coverage is usually written as a series of numbers representing the maximum amount (limits) in thousands of dollars your insurance could cover in an at-fault accident. These numbers indicate:

Individual Bodily Injury / Total Bodily Injury / Property Damage

For example, a 100/300/50 policy, covers a maximum of:

• $100,000 in individual bodily injury
• $300,000 in total bodily injury
• $ 50,000  of property damage.

Remember, in an at-fault accident:

• Individual bodily injury is the maximum amount of medical expenses your insurance could cover per person.
• Total bodily injury is the maximum amount of medical expenses insurance could cover for all injuries combined.
• Property damage is the maximum amount insurance could cover for property that’s damaged. Think things like damage to someone’s car, a broken telephone pole, or damage to a building.

The at-fault driver would be responsible for any damages beyond the maximum limits covered by the insurance policy. Most drivers who don’t have a lot of assets like a house or financial savings to protect commonly choose to keep their limits lower. However, it’s important to make sure you have enough coverage to cover damages you cause in the case of an at-fault accident. Talk with an agent to discuss the best coverages and limits for you.

How do car insurance deductibles work?

A deductible is an amount paid out of pocket per claim before insurance kicks in. Deductibles vary but usually range from $300 to $2,000. They apply to comprehensive and collision coverage and sometimes PIP.

So say a car loses traction on an icy road and hits a telephone pole causing $2,000 worth of damage to the car. If the driver had a $500 deductible, they’d pay the first $500 and insurance would cover the remaining $1,500 worth of damage.

What deductible is right for a new driver?

Luckily, just like with your limits, you choose your deductible when buying your policy. Less experienced drivers typically choose a lower deductible. This means if they got into an accident (or two or three), they’d usually only be paying their deductible each time, depending on the nature of the accident. The tradeoff is that a lower deductible usually means a higher price for insurance.

Once you know what type of coverage is best for you and you’ve determined your limits and deductibles, it’s time to finally get a quote and find out how much all of this is going to cost.

Getting a Car Insurance Quote

Before you sit down to actually get a quote, it’s best to collect the information you’ll need in the process.

To buy car insurance, you’ll need:

Vehicle Information:

• Make, model, and year of your car
• Your car’s Vehicle Identification Number (VIN)
• Mileage on your vehicle’s odometer
• Any security features your car has, like a car alarm or GPS anti-theft device
• How many miles you’ll be driving the car per year
• Who, if anyone else, will drive your car at any time

Personal Information:

• Name and date of birth
• Address including zip code
• Driver’s license number
• Age you got your driver’s license
• Driving history (if you’ve already been driving for more than a year)

How do I get a car insurance quote?

Once you have everything you’ll need, it’s time to get a car insurance quote.

Why is my quote as a new driver so expensive?

Unfortunately, first-time drivers (and really, most drivers younger than 25) usually attract higher prices for insurance. Insurance companies generally look at a slew of factors to determine your car insurance rate but below are some of the most common that might explain why your quote is so expensive:

Age

In general, more mature and experienced drivers have fewer accidents than teens.

Your Driving Record

Naturally, car insurance rates fluctuate based on how risky it is to insure a driver. If a driver has a history of car accidents, it’s likely that this will affect their driving record and possibly increase their rates in the future.

Where You Live

The zip code you live in makes a difference when it comes to the cost of your car insurance. Insurance companies will factor in how likely it is that your vehicle could be damaged or stolen based on data from that area.

Your Vehicle

Insurance companies evaluate the likelihood the car you want to insure is to be in a collision or could be stolen.

How Often and What Distance You Drive

The more you drive the car, the more likely it is that there will be a car accident. Another factor is the impact driving more often and longer distances has on the health of the vehicle.

There are tons of other factors taken into consideration when calculating a driver’s perceived risk level and resulting policy price. Because not all insurance companies use the same formula, it usually pays to shop around and compare prices. A word of caution, however: make sure you’re actually comparing the same level of coverage, not just the policy’s price. To make it quicker, you can use comparison sites to get quotes from multiple insurance companies at once.

Discounts for New Drivers

It pays to look into what discounts are offered for new drivers. Most insurance companies offer discounts for safe drivers, good students and multi-car and multi-driver policies. Some offer discounts for completing a driver’s ed. course as well.

 

How to Shop for a Good Deal on Car Insurance

Get a free quote on insurance

You can save money with group insurance discounts through Nulty Insurance. Discounts are available on both auto and homeowner’s insurance.

Find the best deals by working smarter, not harder.

Auto insurance is a significant expense for car owners, and regularly shopping around for the best price is essential. However, this type of research can be too time-consuming. Instead, let’s explore more efficient ways to find the best price on auto insurance without sacrificing too much time or effort.

Utilize online comparison tools

Take advantage of online comparison tools that allow you to evaluate multiple auto insurance quotes from different providers in one place. These tools streamline the process by eliminating the need to visit individual insurance company websites or make multiple phone calls.

Simply enter your information once, and the tool will generate quotes from various insurers, helping you to quickly identify the best price options.

Consider bundling policies

Many insurance companies offer discounts for bundling multiple policies, such as auto and home insurance. By consolidating your insurance needs with one provider, you may be eligible for significant savings.

When shopping for auto insurance, inquire about potential discounts for bundling policies, as this can help you find the best price while simplifying your insurance management.

Review and adjust coverage levels

Carefully evaluate your coverage needs and consider adjusting your coverage levels to find the best price. While it’s important to maintain adequate coverage, you may be paying for unnecessary extras or higher coverage limits than required.

Assess your driving habits, the value of your vehicle and your financial situation to determine the appropriate coverage levels. By tailoring your coverage to your specific needs, you can potentially reduce your premiums without compromising on protection.

Maintain a good driving record

Your driving record plays a significant role in determining your auto insurance premiums. Safe driving habits, such as avoiding accidents and traffic violations, can help you maintain a clean driving record. Insurance companies often offer lower rates to drivers with a history of responsible driving. By prioritizing safe driving practices, you not only protect yourself and others on the road but also increase your chances of securing the best price on insurance.

 

What To Look Out For When Shopping For Car Insurance

Car insurance is an essential part of owning and driving a car. It protects you financially in the event of an accident, theft, or other incidents. However, with so many car insurance companies and policies to choose from, it can be overwhelming to find the best option for your needs.

In this guide, we'll explore the most important factors to consider when researching and finding the best car insurance company for you. The first step is figuring out how much insurance you need.

How you are priced

Price

Of course, price is a factor that everyone considers when choosing a car insurance company. Be sure to compare prices from several different companies to find the best value for your needs.

Factors Affecting Your Premium

Each car insurance company uses a different method for calculating your premium. Some may consider your driving history, age, location, and other factors, while others may use a more general approach. Make sure you understand how each company calculates your premium and whether you can control any of the factors that affect it.

Discounts

Many car insurance companies offer discounts for various reasons such as good driving history, good grades (for student drivers), multiple vehicles, bundling policies, and more. Be sure to ask each company you consider about their available discounts and how you can qualify for them.

Underwriting Guidelines

Each car insurance company has its own underwriting guidelines, which determine the criteria for qualifying for coverage. Make sure you understand the underwriting guidelines for each company you are considering and whether you meet the criteria for coverage.

Payment Options

Some car insurance companies offer discounts for paying your premium annually or by setting up automatic payments. Make sure you understand the payment options available and whether you can save money by choosing a different payment method.

Insurance Score and Fairness

Some car insurance companies use an insurance score, which is based on your credit history and other factors, to determine your premium. We argue that using credit history in calculating insurance scores can be an unfair practice, as it may disproportionately affect minorities and people on the lower ends of the economy.

It's important to understand how your insurance score is calculated and whether it could impact your premium. If you believe this practice is unfair, you may want to consider car insurance companies that do not use credit history in their calculations.

Usage-Based Insurance

Some car insurance companies offer usage-based insurance, which calculates your premium based on your actual driving habits. This may include tracking your speed, mileage, and driving behavior to determine your premium. If you are a safe driver or drive infrequently, this could be a good option for you.

Can they cover future costs?

Coverage Options

The first thing you need to consider when looking for car insurance is what type of coverage you need. This may include liability insurance, collision insurance, comprehensive insurance, personal injury protection, and more. Make sure you understand the different types of coverage and how they will protect you in the event of an accident or other incident.

Deductibles

You will also want to consider the deductible options that are available to you. A higher deductible will lower your monthly premium, but you will have to pay more out of pocket if you are in an accident. Consider how much you can afford to pay out of pocket and choose a deductible that works for you.

Claims Process

If you are in an accident or need to file a claim, you want to make sure that the claims process is easy and straightforward. Look for a car insurance company that has a reputation for handling claims quickly and efficiently.

Policy Limits

Each car insurance company sets its own policy limits, which determine the maximum amount of coverage the company will provide. Make sure you understand the policy limits for each company you are considering and whether they are enough to cover your needs.

Financial Strength

A financially strong company is more likely to pay out claims in the event of an accident. To research a company's financial strength, you can refer to rating agencies such as A.M. Best, Standard & Poor's, or Moody's. These agencies provide independent evaluations of an insurer's financial stability, giving you insights into the company's ability to cover future costs.

 

How to Shop for Car Insurance

You can get car insurance by shopping online, calling companies directly or working with an agent or broker.

1. Gather information

Before you start shopping for car insurance, collect this essential information:

• Basic details, such as the name, address and birthdate of every driver on the policy.

• Driver’s license information for everyone on the policy.

• Facts about the car, including the make, model, vehicle identification number, safety features, current odometer reading and annual mileage driven.

• Driving history for all drivers, including accidents, tickets or any other violations.

• Your current insurer, if you have one, and your current coverage limits.

2. Determine your coverage needs

When comparing quotes from multiple insurers, make sure you’re getting the same amount of coverage from each company. Not sure how much you need? Each state has its own minimum car insurance requirements, but you may want broader coverage for your vehicle.

The table below includes some of the most common types of coverage:

Coverage type	What it pays for
Bodily injury and property damage liability	Costs for injuries, deaths or property damage from an accident you caused
Uninsured/underinsured motorist coverage	Medical and property damage costs after an accident with a driver who has insufficient insurance or none at all
Collision coverage	Repair expenses from traffic-related accidents, regardless of who's at fault
Comprehensive coverage	Repair costs from events outside your control — including weather events, hitting an animal while driving, theft and vandalism
Medical payments coverage	Medical expenses for you and your passengers after an accident, regardless of fault
Personal injury protection insurance	Medical expenses, as well as lost wages, child care, funeral costs and other losses due to an accident, regardless of fault

Still not sure how much coverage to select? See the next section for info on finding an agent to talk you through your options.

3. Choose how to shop for car insurance

Here are the main routes you can take when getting car insurance — and what to know about each one.

Auto insurance direct from the insurer

With direct auto insurance, there’s no need to seek out an agent or broker. Online car insurance quotes from insurers’ websites and third-party comparison sites are popular, but you can also get direct insurance quotes over the phone.

When you get a quote online, you can see all of your policy options and complete the quoting process at your leisure. You enter your own information and won’t have to deal with agents or representatives unless you want to.

Good choice for you if:

• You want a pressure-free shopping experience.

• Convenience is a top priority — you want to get from quote to coverage as quickly as possible.

• You have a basic understanding of how auto insurance works and don’t need a personal relationship with an agent.

• The freedom to arrange and manage your policy on your own is appealing.

Possible downsides:

• While all direct insurers have representatives to field questions, you may not get responses as detailed as you would from an agent.

• Online car insurance quotes aren’t guaranteed; rather, they’re estimates that may differ from your final price.

• You’ll need to share personal information to get an accurate quote and may get follow-up calls and emails. If that sounds like a hassle, consider creating a separate email account or Google Voice phone number to screen contacts.

Car insurance from a captive agent

Getting car insurance quotes through a “captive” agent was once the customary way to buy coverage. Captive agents work exclusively for a single insurance company and act as your main point of contact from the day you buy your policy. Large insurance companies, such as Allstate, Geico and State Farm, have exclusive agents in just about every state.

Good choice for you if:

• You don’t quite know what you need and want someone to guide you through your options.

• You want someone to help you manage multiple policies.

• You want familiarity and a long-lasting relationship with your insurer.

Possible downsides:

• Captive agents are limited in the prices and policy features they can offer, which could be off-putting for shoppers looking for more options.

• Agents are paid a percentage of your premium as commission, which could incentivize some to offer pricier policies.

• They won’t help you compare their policies to those from other companies.

Car insurance from an independent agent or broker

Unlike captive agents, independent agents and brokers don’t represent a single company. Instead they work with many different providers and can offer you a variety of policies and quotes. Dozens of insurers sell through independent agents, including Travelers, American Family and many smaller companies.

Both agents and brokers earn commissions, but agents represent the insurance companies they contract with, while brokers represent the client who’s buying the policy.

Good choice for you if:

• You want someone who can explain the complex parts of your policy. Independent agents and brokers deal with many insurance companies and may have a greater sense of how certain regulations and contract details vary from one company or state to the next.

• You like the idea of dealing with an agent but want more price and coverage flexibility than captive reps can provide.

• You have a decent understanding of how much coverage you need and can resist unnecessary add-ons or upsells.

Possible downsides:

• They might not be authorized to sell all types of policies from an insurer, nor are they obligated to sign you up for the cheapest. J.D. Power researchers have found that independent agents tend to do more business with the insurance companies they like best.

• They don’t have access to quotes from companies that use captive agents, so if you want to compare quotes from some of the largest insurers, you’d still have to get those separately.

• Because they work on commission, they might try to sell you on policy features you don’t need.

• Brokers often charge a fee to supplement their commission.

Car insurance from specialty agencies

If you’ve had recent accidents, DUIs, tickets or lapses in coverage, get quotes from high-risk car insurance companies. These insurers specialize in nonstandard policies and are more likely to offer coverage to people with spotty records (or no driving records at all).

Some agencies specialize in high-risk coverage from nonstandard companies and can help you find one that will accept your application. These agencies tend to be local, so search in your area for reputable agencies with websites that indicate agents can get car insurance for drivers who are commonly denied coverage.

4. Compare companies

We recommend getting quotes from at least three different companies before you make your final decision. When evaluating prices, make sure you’re comparing policies with the same coverage limits and deductibles.

While you may be tempted simply to choose the cheapest option, it’s worth reading reviews and ratings for each insurer before you buy. For example, you can check the website of the National Association of Insurance Commissioners to see how many consumer complaints have been filed against a company you’re considering, 

You might decide it’s worth paying slightly more for a policy from a company with better customer service.

5. Buy your new policy (and cancel your old one)

Once you’ve chosen a company and a policy, you can usually pay all at once or on a regular schedule, such as monthly. (You may get a discount on your policy by paying in full upfront.)

If you’re buying a new car, make sure you have insurance coverage in place before you drive the car off the lot.

If you’re simply changing policies on an existing vehicle, reach out to your former company to cancel the old policy once the new one is in place. Avoid a lapse in coverage by setting the cancellation date for your old policy for after the start date of the new one. You should receive a refund of any unused premium you paid your former insurer, minus any cancellation fee.

 

How to Shop for Car Insurance: Tips and Tricks for Finding the Best Deals

Insurance is an essential expense that every car owner must bear. However, the cost can vary significantly from one provider to another, depending on several factors, such as your driving record, age, location, and type of vehicle.

Therefore, shopping around for the best deal can be overwhelming, especially if you are unfamiliar with the industry. This article will provide tips and tricks to help you find the best deals on car insurance.

Understand the Different Types of Coverage

Before you start shopping, it’s essential to understand the different types of coverage available. The three primary types of coverage are liability coverage, collision coverage, and comprehensive coverage.

Liability coverage is the most basic type, and it covers the damages you cause to other people and their property while driving.

Collision coverage pays for the damages to your car in case of an accident, irrespective of who is at fault. Comprehensive coverage covers non-collision damages, such as theft, vandalism, or natural disasters.

Determine Your Insurance Needs

The next step in shopping for car insurance is determining your insurance needs. Several factors can influence the type and amount of coverage you need, such as your driving habits, financial situation, and car value.

For example, if you have a new car, it may be a good idea to get comprehensive coverage to protect it against theft or damage from natural disasters. On the other hand, if you have an old car, liability coverage may be sufficient.

Shop Around and Compare Rates

Once you have determined your insurance needs, it’s time to start shopping around. Comparing quotes from multiple providers is the best way to find the best car insurance for your specific needs and budget.

You can ask for quotes from your current provider and other insurance companies. Make sure to provide them with accurate information about your driving record, car model, and coverage needs to get an accurate quote.

You can also use online comparison tools to compare rates from different providers. These tools can help you find the best deals in your area based on your specific needs.

Look for Discounts

A car insurance company would offer discounts for various reasons, such as having a good driving record, being a safe driver, or having multiple cars insured. Therefore, you must ask your insurance provider about any discounts you may be eligible for.

You can also look for other discounts, such as discounts for paying your premium in full, discounts for having anti-theft devices installed in your car, or discounts for being a member of certain organizations.

Consider Your Deductible

Your deductible is the payment you must make out of your hands before your insurance coverage starts being applicable. Generally, the higher your deductible, the lower your monthly premium will be.

If you have enough savings to cover a higher deductible, it may be worth opting for a higher deductible to save money on your monthly premiums.

 

How to Shop for Car Insurance in 5 Simple Steps

Car insurance is a necessity for anyone who drives their own car, but with so many different types of car insurance and policy options out there, it can be easy to feel overwhelmed.

In this article, we’ll break down how to shop for car insurance in five simple steps to help you find a policy that fits your needs—and wallet—best!

1. Determine Your State's Required Coverage

The first step in shopping for car insurance is figuring out your state's minimum coverage requirements. These requirements are the least amount of coverage you must have to legally drive your vehicle, according to your state of residence.

Insurance companies, agents, and other reputable insurance websites can help you find this information. However, we’re all responsible for purchasing insurance that meets our own state requirements, so it’s always a good idea to check for yourself and be sure.

An Example of State Required Coverages:

To understand some of the required insurance coverages a state might have, let's take a look at Illinois.

The state of Illinois requires their drivers to carry the following coverages:

• Bodily injury liability coverage of $25,000 per person and $50,000 per accident

• Property damage liability coverage of $20,000 per accident

This means that as a driver in Illinois, you must have a minimum of $25,000 per person and $50,000 per accident on your policy for bodily injury coverage, and a minimum of $20,000 per accident of property damage liability coverage.

When looking at an auto insurance policy or quote, you may see this represented as $25,000/$50,000/$20,000.

Choose Your Coverage Options

Your state's minimum coverage requirements only include the types and amounts of insurance that you must carry. State minimum coverage requirements don't always translate to sufficient coverage when an actual claim arises, so it’s important to find the level of coverage that’s right for you.

While "just enough" insurance might seem like the more frugal option when you’re first signing up for your policy, if your state-required coverages are found to be inadequate in the case of an accident, you could be left with significant out-of-pocket expenses. So how do you decide how much insurance is enough for your specific needs?

Here are a few questions you can ask yourself to help you narrow in on how much insurance you might need:

Here are a few questions you can ask yourself to help you narrow in on how much insurance you might need:

• "How much is my car worth?" Generally, the more your vehicle's worth, the more value you’ll find in additional protection like comprehensive and collision coverage. In fact, if you finance or lease your vehicle, your lender may require you to carry these coverages.

• "How likely am I to get into an accident?" Accidents are unpredictable. However, if you don’t have the best driving record or have young or inexperienced drivers insured on your policy, you may feel more comfortable with increased coverage limits.

• "What am I willing to pay monthly, and what can I afford in an emergency?" When you're deciding on your insurance coverage, your budget can often be a primary factor that will drive some of your decisions. For example, if you prefer a lower monthly payment, you might have higher comprehensive and collision deductibles. This means that you would enjoy a lower regular payment each month, but you could end up having to pay a larger amount of money out of pocket in the event of an accident. On the other hand, if you don't want to worry about having to come up with a larger amount of money in the event of an unexpected accident, you might prefer a higher monthly premium so you can have lower deductibles.

Pro Tip: Call an Insurance Agent or Get an Online Quote to Help You Find the Right Policy

While it's great to be knowledgeable about your insurance needs, it can also be beneficial to have a professional help you craft your perfect policy. When you speak with a knowledgeable insurance agent or obtain an insurance quote through an online quote system, you'll not only be provided with information about state minimum requirements, but you’ll often receive guidance to help you build a policy that meets your unique needs.

2. Get Quotes from Multiple Providers

When you’re shopping for new car insurance policies, getting multiple quotes and comparing all of your available options is one of the best ways to find the policy that’s right for you.

Because there is such a multitude of coverage options and features, it can be difficult to make an apples-to-apples comparison between different policies. Identifying the main components of the car insurance policies will make everything a bit easier to digest.

If you already have car insurance and want to compare policies, turn to your insurance declarations page. This is usually the first or second page of your auto insurance policy, where your coverages are listed. Use that to compare some of the main components of an automobile insurance policy:

• Liability coverage

• Uninsured and underinsured motorists’ coverage

• Comprehensive and collision coverage and deductibles

• Medical payments coverage

• Personal injury protection (PIP)

Note, this list is not exhaustive and there are many more coverage options. However, apples-to-apples comparison to the other policies you’re reviewing will give you a better idea of whether or not you are making a reasonable comparison between policies.

Now that you have a better idea of where to focus, start your search for new insurance with a free, no-obligation quote from our 60-second coverage wizard calculator.

Pro Tip: Use an Online Insurance Comparison Tool

In the past, shopping for insurance would generally require hours of back and forth phone calls over the course of several days just to receive four or five quotes.

Thankfully, those days are behind us. Today, there are numerous online insurance comparison tools that let you compare dozens of auto insurance options in minutes. Here are some popular free tools that will help you take the next step in reviewing your coverage options:

• www.way.com

• www.thezebra.com

• www.insurify.com

• www.compare.com

Between online insurance comparison tools, direct quotes from carriers, or giving a quick call to an independent agent, you can bypass the waiting and get all the information you need in minutes.

3. Look for Car Insurance Discounts

One way to save money on your car insurance policy is to keep an eye out for discounts. When choosing a new car insurance policy, you can often find a number of different discounts available (and you may be eligible for more than one)! While discount eligibility and availability can vary from person to person and state to state, some of the more common car insurance discounts are:

• Safety-related discounts: Have you gone a few years without any accidents or tickets? Or maybe you’ve taken a driver's safety course to become a better driver? There are a number of ways you can show your commitment to being a safe driver that could make you eligible for a safe driver discount.

• Vehicle-related discounts: Is your vehicle equipped with features like anti-lock brakes, airbags, or a passive restraint system? Insurance companies value your safety and may offer a discount if you have eligible safety features installed in your vehicle. 

• Policy-level discounts: Many insurance companies like to reward their customers for remaining loyal by issuing certain discounts based on how they choose to manage their policy. Some examples include discounts when you continuously renew your policy or choose to pay in full instead of monthly.

• Driver-level discounts- Certain insurance companies will choose to extend discounts to customers as a way to celebrate their personal achievements and accomplishments.

4. Select Your New Policy and Get Insured!

After you've compared a few quotes and applied for any eligible discounts , it's time to lock in your coverage.

If you’re ready to activate your policy, your next steps are to confirm your coverage selections with your provider of choice, select your payment methods, and submit your signed application. Once you've submitted your signed documents and they have been approved by your insurer, they should send you a notification and confirm with you when your policy will officially start!

5. Cancel Your Old Policy (If You Have One)

If you have an existing car insurance policy, you'll want to make sure to cancel it once your new policy goes into effect. This is a crucial step—you don't want to be paying for two car insurance policies at the same time. More importantly, you don't ever want your coverage to lapse!

Pro Tip: Wait Until Your New Insurance Is Active to Prevent Gaps in Coverage

As touched on above, it's important you don’t cancel your old policy before your new one goes into effect. A lapse in insurance coverage—even just a few days—could result in major trouble in the event of an accident, as well as increased premiums and other insurance headaches down the road.

How to Shop for Car Insurances

 

How to Shop for Car Insurance

When it comes to car insurance, the options can be overwhelming. That's why we sat down with our in-house expert, Fred Hippo, who brings 28 years of insurance industry experience. For Fred, helping people comprehend their insurance policies and safeguard their loved ones and assets is more than a job—it's a deeply rewarding experience.

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What is the first thing you should look for when shopping for car insurance?

Fred: The first thing you should do is take the time to research and use the tools that are on the internet. Use comparison sites to understand your needs, coverage, and what insurance companies are available in the market. 

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Can you pinpoint the most critical insurance red flag 🚩 to watch out for?

Fred: Transparency is critical. When seeking an insurance policy, whether with or without an agent, asking to review many quotes from various carriers is crucial. The agents should show the quotes to you in a clear and understandable format.

We take pride in transparently displaying your options, empowering you to make the best choice. We do all the hard work of finding quotes, and we let you choose. We don't make it for you. That way, you can know you are making the best decision.

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What's something nobody tells people when you are insurance shopping?

Fred: That would be: all insurance companies, agents, or brokers charge a fee for their services. That's why the price might change in the total amount you'll be paying depending on the agent or broker you are working with. It is essential to know and understand the fees the insurance companies and agents/brokers charge you.

Most companies charge the fee the first time you pay for your policy. That's why prices can suddenly climb to a very high amount. .

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What are your top 3 tips for people who want to change their insurance company?

Fred:

1. Don't always go with the cheapest option. Go with the best coverage, and if you can do so, select coverages that are well above the state minimum of limit coverage because the state minimums may not protect you adequately as a consumer. 

2. Understand the policies you're purchasing to know what your coverages mean, and you can compare policies before making a buyer decision. It's equally important as you're shopping for insurance to ensure you're protecting yourself properly and other people on the road. 

Coverages like bodily injury and property damage protect other people, whereas uninsured motorists or uninsured property damage protect you.

3. Know the carrier and broker fees that you're paying. Often, fees can add hundreds of dollars a year to your insurance cost.

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What other things do you consider essential for auto insurance shopping besides what you shared with us? 

1. Know what's at stake when you buy the "Cheapest Coverage". Make sure you compare your insurance quotes to look beyond the price. The lowest price may mean you are sacrificing important coverages that are critical to protecting your family. In addition to Bodily Injury and Bodily Injury Property Damage that is required in most states by law, make sure your policy includes Uninsured Motorist / Underinsured Motorist Coverage, Uninsured Motorist Property Damage Coverage, and Medical Payments which can protect you in the event of an accident.

2. If you're buying Physical Damage Coverage, Collision and Comprehensive Coverage protects your vehicle (Also known as Full Coverage). Consider taking a higher Collision or Comprehensive deductible. Take the premium savings from buying the higher deductible and purchase the coverages suggested in tip 1.

‍3. Know the discounts you're eligible for and explore the deals! Insurance companies offer a wide range of discounts, so take the time to understand what you qualify for.

4. Finally, Shop your insurance once a year with your insurance comparison website or agent. Your needs will change over time, and shopping for your policies will help you secure the best coverage and value.

 

Car Insurance Florida

Car insurance is a must-have for any driver in Florida. With so many options available, it can be overwhelming to choose the right coverage for your needs. At our Insurance, we understand that choosing the right car insurance policy can be a daunting task. To help you make an informed decision, we've put together some tips for buying car insurance in Florida.

1. Understand Your Coverage Options

There are several coverage options available for car insurance in Florida. These include liability coverage, collision coverage, comprehensive coverage, personal injury protection (PIP), and uninsured motorist coverage. It's important to understand what each of these coverage options entails so that you can make an informed decision when choosing a policy.

Liability coverage is mandatory in Florida and covers damages and injuries that you may cause to other people or their property while driving. Collision coverage covers damages to your vehicle in the event of an accident. Comprehensive coverage covers damages to your vehicle from non-collision incidents such as theft, vandalism, or natural disasters. PIP coverage pays for medical expenses and lost wages if you or your passengers are injured in an accident, regardless of who is at fault. Uninsured motorist coverage protects you if you're involved in an accident with a driver who doesn't have insurance.

2. Determine Your Insurance Needs

Before you start shopping for car insurance, it's important to determine your insurance needs. Consider factors such as your budget, the value of your vehicle, your driving habits, and your level of risk tolerance. Based on these factors, you can decide which coverage options are necessary for you and how much coverage you need.

For example, if you have an expensive car, you may want to opt for comprehensive coverage to protect against theft or damage from natural disasters. If you have a long commute, you may want to opt for higher liability coverage to protect against potential accidents. If you have a history of accidents or traffic violations, you may want to opt for a higher level of coverage to protect against potential lawsuits.

3. Price and Coverages.

When comparing quotes, consider the coverage limits, deductibles, and premiums of each policy. Don't just opt for the cheapest policy, as it may not provide the coverage you need. Similarly, don't assume that the most expensive policy is the best option. Instead, choose the policy that provides the best value for your needs.

4. Consider Bundling Your Policies

If you have other insurance needs, such as home or life insurance, consider bundling your policies with the same provider. Many insurance companies offer discounts for bundling, which can save you money in the long run.

At our Insurance, we offer a variety of insurance options, including auto, home, renters, commercial, and more. By bundling your policies with us, you can save money on your insurance premiums and simplify your insurance management.

5. Work with an Experienced Agent

Finally, it's important to work with an experienced agent who can help you navigate the complexities of car insurance. At our Insurance, our agents are trained to help you choose the right coverage options for your needs and budget. We can also help you file a claim and advocate on your behalf in the event of a dispute.

 

Best Way to Shop for Car Insurance: Everything You Need to Know

The best way to shop for car insurance is to do so annually by using comparison tools located on specific websites. These tools allow you to examine the costs of several providers so you can determine which option works best for your budget and needs.

What Type of Auto Coverage Do You Need?

Everyone's driving situation is different, but auto insurance acts as financial protection. If you get into a serious accident, the bills for injuries and damage can be quite expensive. If you cause the accident, the victims could sue you.

Before you dive into shopping for car insurance, you should know what your state minimum coverage amounts are. That way, you can compare the costs accurately.

Liability coverage protects you from that worst-case scenario, so selecting the right coverage is one of the most important parts of your insurance quote comparison. NerdWallet recommends that you have as much liability coverage as your net worth.

When looking at liability coverage, note that it comes in threes. You might see something like 250/500/250 in a policy. Think of it as individual injuries/total injuries/property damage.

You probably noticed that liability coverage doesn't pay for injuries that you or your passengers sustain. That's why oftentimes people opt for full-coverage insurance. This isn't one type of coverage but refers to policies that include additional coverages. Some examples of add-on coverage include the following:

• Personal injury protection (PIP). Not every state mandates this coverage, but it goes toward paying your medical expenses regardless of which driver is at fault in case of an accident.
• Uninsured and underinsured motorist coverage. This coverage helps if you're injured by a driver who either lacks or doesn't carry enough insurance. It covers your medical expenses.
• Medical payments. This coverage applies toward medical expenses for everyone in your vehicle, regardless of who is at fault.
• Collision coverage. This covers the costs associated with collisions involving another vehicle or fixed object such as a fence or pole.
• Comprehensive coverage. This covers your vehicle against physical damages not involving an accident, such as weather incidents, falling objects, or crashes with an animal.
• Gap coverage. This type of coverage pays the difference between a loan amount on the vehicle and its value after depreciation.
• Roadside assistance. If your vehicle breaks down, this covers the cost of towing and tire changes.

How Do You Comparison Shop for Car Insurance?

One of the most common ways to comparison shop for auto insurance is doing so directly via the insurance company's website. The downside to this option, though, is that you only can view one company's rates.

Expect to compare auto insurance quotes via specific websites more frequently. Lead generation sites oftentimes sell your information, and agencies might not provide you with the entire cost. Only comparison sites give you a free and no-obligation way to save money based on your driver profile and financial needs.

Comparison tools via certain sites, such as The Zebra and Insurify, show auto insurance premiums from different companies to help you locate the best rate. This way you can view the prices of several companies and find the best price for your needs and budget. In fact, using Insurify can save you an average of $585 annually.

These tools should also include the state's minimum car insurance requirements pre-loaded. States that require PIP are typically referred to as no-fault states, which means that if an accident with injuries occurs, each driver makes a claim with their own company to pay for them. Beyond the PIP limit, the at-fault driver's liability insurance covers the rest.

What Information Do You Need to Get a Car Insurance Policy?

When shopping for car insurance, most insurers require specific pieces of information to calculate your rates. Most companies use the following:

• The date of birth of all drivers on the policy
• Driver's license numbers of all drivers
• Driver's records of all drivers
• Insurance history of all drivers
• Vehicle Identification Number (VIN) of all vehicles
• The address where the vehicle is kept

How Can You Secure Low Insurance Rates?

By taking a few additional steps, you might be able to secure even lower car insurance rates. Some of these steps include the following:

• Raise your deductible. A higher deductible means you will have lower payments. If you have both collision and comprehensive coverage, opt for a higher deductible.
• Install an anti-theft device. Putting in a car security system can lower the chances of your vehicle being stolen.
• Maintain a high credit score. Your credit score plays a role in your rates unless you live in California, Hawaii, Massachusetts, and Michigan. Insurers see a strong credit history as an indicator that you are acting responsibly and will file fewer claims.
• Bundle your insurance policies. Some companies allow you to bundle your auto policy with homeowner's or renter's insurance.
• Take a defensive driving course. Insurers love drivers who have a clean driving record, and taking this course can help you become a better driver.
• Drive less. Being on the road less can reduce your chances of getting into an accident.
• Ask for discounts. Many companies offer different types of discounts. Common ones include deals for members of professional organizations, pay-in-full discounts, good driving discounts, and multi-vehicle discounts.
• Consider local and regional insurers. According to NerdWallet, just four companies (Allstate, GEICO, Progressive, and State Farm) control more than half of the country's auto insurance business. However, smaller insurers such as Auto-Owners and Erie Insurance oftentimes have higher customer satisfaction ratings and lower rates.
• Opt for user-based insurance. If you're a safe driver who doesn't travel many miles, a usage-based program, such as Allstate's Drivewise or Progressive's Snapshot lets your insurer track your driving in exchange for potential discounts.

When shopping for car insurance, don't rely on only one quote from an insurance provider. Compare at least four prices to give you a better understanding of pricing. It's also recommended that you shop around and compare car insurance quotes annually. That way you can make sure you're getting the best prices available.