When it comes to choosing a car insurance policy, many people let premium price drive decisions. But cutting corners on cost could leave you underinsured and overexposed to the risks of the road. Fortunately, it’seasy to strike a balance between affordability and adequate coverage when you have the right information.
Remember, your insurance representative is a valuable resource when you want to get cheap car insurance. Asking these questions before you purchase a car insurance policy can help you get the protection you need at a price you decide is right for you.
Do I Have All The Coverage I Need?
Thefirst answer to this question will depend on the state where you live. At a minimum, most states require liability insurance, which covers the cost of accident-related injury and legal fees. Once the minimum requirements are met, ask your insurance representative to explain and recommend additional coverages.
These commonly includes collision, comprehensive, uninsured, and underinsured car insurance. Your representative should also explain how each will affect your premium and out of pocket expense after an accident. If you have a lot of personal assets to protect, you may also want to discuss excess liability insurance with your agent.
Am I getting all the discounts and savings as I can?
The cost of insurance partly depends on the coverages, deductibles and policy limits you choose. It is also based on your risk rating a calculation used to determine the likelihood that you will be making a claim in the future.
Factors such as the age, gender, driving record, and location will largely determine the price of your premium. While there is not much to affect your risk rating and its effect on the price of your policy, there are many discounts designed to help lower premiums.
Final Thoughts
To keep monthly premiums low, drivers often opt for higher deductibles and lower policy limits. But if you can’t pay your deductible above and beyond your limits, you may find yourself in a financial crisis. Before purchasing any policy, have your insurance agent to guide you through and give answer to the questions above.
