Auto insurance is one of the most important types of insurance most adults consider at some point in their lifetime. Some parts of auto insurance are mandated by law, while others are optional (more like life insurance, where you pay for peace of mind). So how can you evaluate auto insurance quotes and figure out what kind of insurance you need? Here are answers to some of the most frequently asked questions regarding auto insurance:
- How Can I Get Cheap Auto Insurance?
The best way to find the lowest rate is simply to get multiple auto insurance quotes. Be careful, however, that you’re comparing apples to apples; you’ll need to look at more than just the premium on the bottom line. Unsurprisingly, you’ll get the lowest rates for a bare-bones policy. At the very least, you’ll need liability insurance (that’s the part required by law for all drivers), but you might want to consider collision insurance, personal injury protection, and more.
- Is Auto Insurance a Regulated Industry?
Auto insurance is regulated by state. Insurance companies must file how they determine rates and then stick to those rates (to show that they’re not being discriminatory). State overseers make sure that those rates are within the standards that state considers fair.
- Why Do Rates Vary Among Insurance Providers?
No matter where you buy your insurance, whether that’s online directly from a company or through a broker, you’ll be paying for the costs of running that business. In the case of a broker, for example, that will include the commission they need to make a living. If you buy online, you’ll be paying for the company’s ability to keep that website running and provide support for it. Beyond that, one of the most common reasons for a difference between rates among various companies is the level of customer service that is provided to you. So even if two policies offer similar benefits, you’ll want to consider extras such as a dedicated agent, 24/7 access, etc.
- Can I Lower My Auto Insurance Rates?
Insurance providers calculate rates based on a number of factors. Some of those are demographic (age, gender, etc.), which of course you can’t control. But driving safely, avoiding traffic citations and not making claims for very small problems can all lower your rates or keep them low. Many companies even offer discounts for lifestyle accomplishments such as being a good student.
- Can Coverage Be Adjusted?
You don’t need to get a new policy because you buy a new car, have a teenager start driving or have an older child leave the policy to get his or her own insurance. It’s normally very easy to update your insurance based on these kinds of changes.
What other questions do you have about auto insurance quotes? Ask or share your thoughts in the comments.