Top 6 Questions To Ask Before Buying Auto Insurance

After saving up for months, you finally have the keys to your brand new car. But before you hit the road, you need to get auto insurance. Here are a few important questions to ask insurance providers so that you can get the insurance you need: 

1. What type of coverage should I get?

Auto insurance requirements vary from one location to another but one thing that’s considered mandatory is liability insurance coverage. There are two kinds: property damage (PD) and bodily injury (BI). If you are at fault in an accident, then BI will pay for the third party’s bodily injuries. PD liability will pay for any property damage but will not cover for the damage to your vehicle if you’re at fault. This is why add-on coverage should also be carefully considered.

2. How can I tell if I’m high risk?

Auto insurance providers have risk assessment tools and they usually base your risk level on age, occupation, sex, location, and driving experience. First time drivers are considered high risk and so they pay higher premiums.

3. Who is covered in my policy?

The owner of the vehicle is the one who is covered in the auto insurance policy. If you plan to share your vehicle with other members of your family then you will have to get additional coverage. This will naturally raise your premiums except if the drivers are labeled low risk.

4. How much should my deductible be?

A deductible is basically the amount you will pay towards treating injuries or repairing damages. This amount is pre-agreed upon when you purchase your insurance policy. A low deductible will mean you will pay higher premiums but then it also means your insurance provider will cover most of the costs. A higher deductible will mean lower premiums but should you get into an accident, you’ll also be paying a bigger amount out of pocket.

5. How can I qualify for discounts?

There are several ways you can lower your insurance premiums. If you have good grades in school (if you’re a student) then you may be eligible for a discount. If your vehicle has extra safety features, this may also lower your premium. The best way to find out if you qualify for a discount is to ask your insurance provider.

6. Does the value of my car affect my premium?

Your auto insurance provider will always take into account the value of your vehicle. If you have an expensive and flashy car, you may have to pay very high monthly premiums. If your car was bought from an unreputable used car dealer, then the insurance company may even refuse to insure it.

Before you pick an auto insurance plan, make sure to do your research properly and compare the rates of various companies so you can find the best deals. Lastly, don’t forget to read the fine print before signing your name on the dotted line.

from Motorlogy http://www.motorlogy.com/top-6-questions-to-ask-before-buying-auto-insurance-4152/
via IFTTT