How to Compare Insurance - It's Not Just The Cost

When you are shopping for insurance it is wise to consider a few things. You will want to get adequate coverage from a reliable company that is not going to cost you an arm and a leg. You should also be aware of any additional coverage that you might end up needing and the costs associated with them. We all know that financial times are tough all over. By considering these variables ahead of time, you could end up saving hundreds or thousands of dollars down the road.

Know What You Need

48 of the 50 states require some type of minimal insurance requirements for drivers. The exact types of polices vary from state to state. The majority of states only require bodily injury and property liability insurance. Other states also require PIP, or personal injury progection, and some of these states even mandate that drivers have uninsured/underinsured motorist coverage. Be aware of what your states insurance requirements are, though these minimum state requirements may fall well short of the protection that you actually want or need.

Know What is Included

Some insurance policies can be vague or have some questionable writing. You should be vigiliant in getting clear answers to any uncertainties before you sign on the dotted line. Pay attention to all the exceptions and provisions included in your insurance policy. People often forget that insurance policies are legally binding contracsts; signing them should be taken very seriously. You must be careful as some insurance companies add claueses that allow them to avoid payment for certain types of damage. It's your job to have a clear understanding of anything you sign. If you are unsure, ask questions.

Do You Need Additional Coverage?

Gap coverage can be a great investment for some. This type of coverage pays for the total amount that you owe on your car rather than just paying the book value. If you remember from earlier in this article, each state has its own minimal requirements for insurance and this coverage may not be adequate for your needs. One more note on gap coverage; since cars lose their value quickly, gap coverage can help you to pay off your loss in full instead of making continued payments for a car that is not drivable.

Research the Insurance Carrier

The last thing you want is an insurance company that is folds and is not there for you when you need them most. It is a good precaution to research the professional reputation and financial stature of potential insurance companies. You can use companies like A.M. Best to give you a reliable rating for the insurance company that you are considering. It pays to do your homework on insurance companies.