Why is it important to have the right auto insurance? Mostly because when the time comes for the policyholder to use the insurance and make a claim, they will want to pay as little out of pocket as possible and have the most pleasant experience possible. For a driver to ensure this as an end result to making a claim, a careful and thorough search should be performed by the policyholder comparing a number of auto insurance companies and what each company provides. Selecting the proper coverage is vital to make certain there isn’t a lack of protection. The right auto insurance protects the policyholder from unexpected accident-related costs.
What constitutes as the “right auto insurance” is different for every driver and policyholder. Some drivers base their auto insurance around the price of the premium, while others choose their policy according to the exact coverage and protection they desire. It is hard to pinpoint what precisely the right coverage entails until research and careful planning have been done to meet the needs of the individual. A few things to consider before finding auto insurance is getting full coverage and knowing how the insurer operates.
Full Coverage
Too many people foolishly believe they have “full coverage” when they have purchased their auto insurance policy. The fact is, any driver can only be fully covered if they have purchase all of the coverage options up to the highest amount the auto insurance company will allow. Even then, the driver may be at fault for a major accident that causes death or a permanent disability and is taken to court for a large amount of money for pain and suffering or loss of wages. Auto insurance is available to help of course, but if the driver made unwise choices while driving, such as excessive speeding or drunk driving, more risk for a major accident with high expenses involved.
Minimum Coverage: All states require drivers to purchase bodily injury liability and property damage liability at a minimum amount. Experts always suggest to purchase more than the minimum amount since that amount is usually not sufficient enough to pay the damages of a major accident. Bodily injury liability is for the other driver’s medical expenses, not the injuries of the policyholder, members of the policy, or passengers in the vehicle. Property damage liability is applied to the cost of damages of the other vehicle or property, not the property of the policyholder. Many policyholders fail to recognize this required coverage only applies to the other party and not themselves.
Additional Protection: To have a policy that gives better coverage (as close to “full” as one can get), other insurance will need to be added to the policy. There are coverage options that are specifically used for medical expenses of the policyholder and members of the policy (personal injury protection) that can be used in addition to or in place of health insurance (medical payments). Insurance can be purchased that protects the driver from paying for damages done to their own property by someone without insurance (uninsured/underinsured motorist liability). Other options may be required (comprehensive and collision) by the loan or lease company to ensure the vehicle can be repaired or replaced no matter what the cause of damage was.
Drivers on the Policy: A well-rounded policy should be considered especially when the policyholder is purchasing insurance for more than just themselves. When additional drivers are added to the policy, such as a new spouse or teenage driver, the cost of the premium will rise because the risk of making a claim also rises. Policyholders should consider the number of drivers on the policy as well as the number of passengers who regularly travel in the vehicle.
The Auto Insurance Company
Not only should you have the right coverage options in your policy, your policy should be provided by a reliable auto insurance company. Everyone has their own reasons for choosing their insurer, but those reasons should extend beyond “the agent is a childhood friend” or “they gave the best rates.” Choosing your auto insurance provider should be done based on a number of factors, not just one.
Financial Security: The ability of an auto insurance company to provide money for a claim is crucial and should be integral in the selection process. If a company isn’t financially stable enough to provide money for a claim as soon as the policyholder is in need, there is no longer a reason to continue to pay for insurance. Auto insurance companies can fail due to paying out more money in claims than they receive in premium charges. One way to check the financial status of auto insurance companies is by checking ambest.com, weissratings.com or standardandpoors.com.
Insurance Prices: While it isn’t great to base an auto insurance company solely on the price they offer, it is a good idea to look at their prices in addition to other factors. So many auto insurance companies are competing for every driver’s business that most insurers provide very comparable rates, but some companies can still provide the same service as others for a cheaper price. As most consumers are tightening their money belts and looking for ways to cut back spending, companies take notice and do their best to comply. When drivers do not compare insurance prices given by a number of companies, they may unknowingly be stuck paying the absolute highest amount on the market.
Customer Service: No policyholder wants to deal with a discourteous or dim-witted insurance agent. Checking on the customer service offered by the auto insurance company before committing to them will help show how what the policyholder will be dealing with any time contact is made with the insurer.
Making a list of what is wanted by the policyholder before purchasing an auto insurance policy does help avoid forgetting important aspects of carrying auto insurance. It can be easy to get swept away by a low price or a sweet-talking agent. Pros and cons of coverage options and insurers show the policyholder what option is best for the individual or family’s needs, and the insurance policy can reflect that. Any driver can find the right auto insurance policy by taking the time to look.
