7 Important Steps You Need to Consider Before Choosing Auto Insurance

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Having a car may be the most memorable moment in your life as a one-car family, but with that moment also comes fear, which is the fear of loss. The most common reason you may have that fear is having full responsibility that might be too much to handle for you, but the good news is with the help of car insurance companies, they would willing to take the risk out of your hands and you don’t have to worry a single thing about your car in case something bad about to happen.

The practice of insurance itself has been around since the early 18th century, but now the saddest thing that happened to car insurance sector nowadays is people buy car insurance company right after buying their first car without giving a single thought, that’s the problem. What you should do is do your homework before choosing a car insurance company now to help you with your homework consider these 7 most important steps as best as you can.

  1. Car insurance company

The first thing you need to consider is the car insurance company itself but for now, try not to think about the price first, you know it is not such a big deal going from a car insurance company to another. Many companies claim that they are the best, but what you should ask is which one is the best car insurance company for you. There are many qualifications for a good car insurance company here are some you should consider:

  • Customer service

The main offer every car insurance company has is its service, a good insurance company will offer you its qualified customer service who should be very responsive to any questions you may have.

  • Experience

Another thing you should consider is how much experience the company has, an experienced car insurance company should have professional management skill and their staff should possess the necessary qualifications and skills.

  • Reputation

With the experience come along the reputation. In the US, car insurance companies are regulated based on their license status and you should deal with a company that has been around for a long time with a good reputation.

  • Financial stability

Why do you even want to buy from an insurance company that doesn’t have the resource to pay for your loss? If you want to know if the company has financial stability or not you can take a look at its annual financial statements.

  1. Coverage

Having coverage that suits your need is critical because it can save you a lot of money, but if you want the best option, you might want to consider other types of insurance, not just the liability insurance because just in case you get hit by an uninsured motorist the other insurances can cover it which usually above your financial limit such as:

  • Comprehensive insurance
  • Property damage insurance
  • collision
  • Personal injury protection
  • Roadside assistance
  1. Price

Do you remember the old English idiom “don’t judge your book by its cover”? Now if you take the context in term of choosing a car insurance plan then you shouldn’t judge the plan based on its price what you should judge is the value the company has to offer that suits your need and also it must come with the right price because being expensive doesn’t mean it’s good for you, and cheap doesn’t mean it’s bad.

  1. Comparison 

Another step you need to consider is to compare, compare, and compare. Many people decided to go to the insurance company once they have found 2 or 3 insurance providers, to find the best car insurance company is better to stick to more than 5 or more providers from there you will find their weakness and strengths then you can decide which one suits you best. You can also do the comparison through online surfing since most car insurance companies are now accessible online and it may be the best option to find benefits, features, claim, and more for each car insurance company.

  1. Yourself

Before choosing a car insurance company, you should pay attention to yourself because the rate of insurance will be affected by your driving habits, age, marital status, driving history and more. For example if you are an inexperienced driver, have a family, in your 20’s then prepare yourself to pay more money for the insurance plan because there is high chance you get an accident on the contrary if you are well-experienced driver, single, have taken some driving course before, and in your 30’s or above you can relax because there is high chance the insurer will drop your rate since you are less likely to get an accident.

  1. Ask about the discount

With many car insurance companies out there, most of them try to compete by offering their customers some special discounts. So, no need to be shy when asking for available discounts such as:

  • Annual or six months paid in full
  • Multi-car discount
  • Bundling discount
  • Loyalty discount
  • Safe driver discount
  1. Beware of scammers

Believe it or not, many scammers pose as legitimate insurance providers which cost car insurance companies billions of dollars every year, and unlike the other crime, the number of convicted insurance fraud so far is low. To not fall as a victim you need to pay attention to these signs of car insurance fraud.

  • Lack of transparency

If your insurance agent avoids many specific answers to your questions or doesn’t mention any important information, then you may consider this as the first sign of car insurance fraud.

  • Asking for sensitive information

Besides avoiding many answers, a scammer may ask you for policy number or other identifying information which has nothing to do with the deal.

  • Lack of documentation

The scammer may lack documentation like official paperwork, receipts, and proof of your policy claim.

  • Unnecessary request

If your insurance agent request for unnecessary which create a sense of urgency like paying a fee for a limited time offer or signing many documents, then be wary.

  • Ghost broker

The most common sign of car insurance fraud is ghost broker, ghost broker is the term used to describe a professional fraudster who sells invalid discounted insurance policy to the unsuspecting consumers which usually through online. To not get scammed by this fraudster is by checking online registers if the firm is not authorized then you shouldn’t buy it.

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