When you buy your first auto insurance policy, you may not know what to look for. But it isn't complicated. Here's what you should you know about buying auto insurance, and what you should look for in your policy.
The first thing to think about is how much coverage you should have. There are 4 basic kinds of coverage: liability, collision, comprehensive, and uninsured driver. Most states require you to have liability and uninsured driver coverage. Collision coverage will pay for your damages if you have an accident that's your fault. And a comprehensive policy protects your car from fire, theft, and disasters.
Ideally, you want all 4 kinds of coverage. But how much you buy depends on your budget. And it depends on your car, too. If your car didn't cost much to begin with — and doesn't have much resale value — collision and comprehensive coverage may not be worth it.
Before you buy a policy, make sure you know exactly what it covers. Insurance policies are full of limitations and exclusions. You don't want to be driving around thinking you have coverage, only to get in an accident and have your claim denied.
After you've found an affordable policy, it doesn't mean you can forget about auto insurance. You should review your policy every year, and compare rates on other policies.
Auto insurance is a competitive market, and that means that companies are always trying to undercut each other's prices. Getting a quote every year is a good way to save money. If you find a better price, you can always switch your coverage to another company.
You should also review your auto policy whenever a major life change happens. A few good times to review your policy include:
Don't settle for one company's best offer. The prices on auto insurance policies are always changing.
The best way to save money is to get quotes from several agents. And you can use our free auto insurance quote service to get matched with multiple agents. They'll help you get the right kinds of coverage, and they'll help you save money.