Shopping for auto insurance might sound like a drag, but it’s important for you to have appropriate coverage in the event of an accident. Following are some guidelines to consider when purchasing an auto insurance policy.
- Gather information. Before you start shopping, compile key information about each vehicle you want to insure. This list should include the year, make, and model of each vehicle. Knowing your Vehicle Identification Number (VIN) may help you get a more accurate quote. Be prepared to answer questions about vehicle usage or special after-market equipment installed in your vehicle.
- Decide what you need. Whether you’re purchasing auto insurance for a new vehicle or making changes to your existing policy, it’s important to be familiar with the different coverage options that are available. Maybe what you currently have doesn’t meet your needs, or perhaps your premium seems too high. Bear in mind that there may be a gap between the minimum coverage your state requires and how much you may actually need.
- Shop around. When selecting an insurer, ask questions. How long has the company been selling auto insurance? Does it have a good reputation? How is the company’s customer service and claims handling? Is it able to provide the coverage you need at a price you can afford? Answering these questions could make it easier for you to shop for the policy that’s right for you.
- Ask about discounts. You could be eligible for several discounts. These vary by state and company but may include discounts for multiple vehicles, anti-theft devices, and low annual mileage.
- Compare quotes. Once you have a collection of quotes, you need to compare them. Review each quote for information such as coverage levels, policy length, and price. This will help you attain the best overall value for your money as well as sufficient protection for your vehicle.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2020
