Experts often tell you to buy as much car insurance as you can afford. That is probably not helpful unless you know the basics of how auto insurance works and which coverages you should not skimp on. Generally, we advise that you compare car insurance quotes only when you understand the best coverage for you.
Just in case you do not know what auto insurance entails, here is a sneak peek at some of the things you should know.
- The Cheapest Coverages are Usually the most Helpful.
The minimum coverage you are required to have by law is known as liability insurance. The most common coverage limits can mean your insurance carrier is on the hook for hundreds to thousands of dollars for any damage you may cause. However, did you know that the value of your car caps other coverages?
Comprehensive coverage will typically be the most expensive option. However, it is usually about half the price of collision coverage and a third of the price of liability coverage. It is worth the cost to cover your car for things such as theft, fire, and vandalism. Uninsured motorist coverage is essential because it protects you from all the uninsured drivers on the road. Take a look at your coverage options, paying a little more now may save you a lot in the future.
- Factors that affect car insurance rates:
Each car insurance company has guidelines regarding which groups of drivers they want to accept and how much they will charge those groups. This process is called Underwriting, at this point, the insurance company will look at motor vehicle records to see how many accidents or tickets a driver has received. Many insurance companies also use an insurance history report to see if the driver has made any car insurance claims and how much money was paid. Although accidents and violations can only affect the rates you receive for three years, many companies will look back five or more years when deciding if they want to offer you insurance. Underwriting is done automatically by software behind the scenes.
This means no two insurers will have comparable prices for the same policy — often, the difference is hundreds of dollars. So, if you do not compare rates, you can wind up overpaying.
At Romero Insurance and Financial Services, we believe that the interests of our clients should be the priority, and this ensures that they are provided with the best options applicable to each case. Our clients are not just card-carrying members; they are family.
Reach out to us today to book a consultation. Let’s work together on finding you the best coverage for your insurance.