The Dos and Don'ts of Choosing the Right car insurance At some point in your life, you might find yourself dealing with car problems and repairs. I
The Dos and Don’ts of Choosing the Right car insurance
At some point in your life, you might find yourself dealing with car problems and repairs. If you aren’t prepared to handle them, they can be both frustrating and expensive.
Fortunately, there are certain steps you can take to ensure your repairs don’t take too big of a toll on your wallet or your schedule.
The following dos and don’ts will help you pick the best car insurance for your needs, so that you can get back on the road as soon as possible—and avoid costly repairs in the future.
Do Compare Quotes
It might seem like an easy decision, but it’s not always. You have to figure out which plan is best for you. After all, there are more than 100 car insurance plans in America that vary by cost,
coverage options and discounts. When looking for a car insurance plan, think about your budget, needs and lifestyle before making a decision.
For example: A comprehensive plan may be right for you if you don’t want to worry about deductibles or paying small claims out-of-pocket while an accident-only policy might be preferable if you don’t mind paying a little more up front each year in order to save on smaller repairs over time.
Keep in mind that this doesn’t apply to every driver. Some people prefer higher deductibles because they can afford them or want the flexibility of being able to pay for small repairs without involving their insurer.
Don’t Pay a Premium
Don’t pay a premium for car protection when you can find plans that offer a similar level of coverage for much less.
Don’t be swayed by the brand name. If a plan has features that are important to you, look at reviews from other customers who have used it to see what they say. And don’t assume that just because an insurance company is well-known, their prices will be competitive.
Don’t sign up with any insurance company or agent who pressures you into buying something,
especially if they are not willing to share information about their pricing or policies in writing first.
And don’t feel obligated to buy anything because your salesman told you it would make it easier on them. After all, he’s not going to help you choose the best one for your needs.
Do Consider Brand
One important factor to consider is the brand. If you are looking for a reliable, safe car,
make sure to do your research before you settle on a specific make and model. What kind of safety features does it have?
Does it come with an emergency battery backup? How much power does it produce? Do you know how well-known it is in its respective category?
All this information will help you determine if that particular make and model is worth investing in. As a general rule, I recommend sticking with brands such as Tesla or BMW which are known for their excellent quality.
A lot of people prefer leasing because they don’t want to worry about what might happen if they were ever unable to drive their vehicle anymore.
But when it comes to leases, there’s usually a catch! The price per mile may seem good at first glance but after 10K miles or so,
the miles you’re paying can add up significantly due to high wear-and-tear fees. You might end up spending more money than if you had bought outright or done a traditional finance deal.
Do Pick Comprehensive Cover
Comprehensive cover is usually a good option for anyone who owns a car, because it can help to protect you against all possible eventualities.
It provides protection for your car against fire, theft, collision, vandalism as well as breakdown. The one drawback with this type of plan is that it is often more expensive than some other types of cover.
A key point to consider before buying a comprehensive insurance policy is what exactly you want to be covered for;
if you are looking for only basic protection then this may not be the best choice for you.
Comprehensive insurance policies can also come with deductibles that might affect how much money you have to pay out-of-pocket in case there’s an accident or something goes wrong with your car.
You should think carefully about what the deductible is on your policy and compare this to any quotes you receive from insurers.
If it doesn’t seem like you’ll be able to afford the deductible on your policy, then you should look for another kind of coverage instead.
Do Get Insured on Your Own
Don’t Get a Warranty: Most new cars come with an extended warranty as standard, but it’s not worth buying an aftermarket one.
They cost a lot more than they’re worth, tend to be riddled with exclusions, and are often useless if your car breaks down after the manufacturer’s warranty has expired.
Don’t Pay for Full Coverage: You’ll want to get liability insurance or comprehensive coverage for your car,
but you don’t need full coverage. It costs too much money for what you get.
You can save some cash by only paying for collision coverage if you have a newer model car that is worth less than $1,000 or if you already have comprehensive coverage on your home insurance policy.
If you do opt for collision coverage, make sure you read through the fine print to make sure there are no hidden clauses in your contract (like deductibles) that might add up and eat away at your savings.
Don’t Go Cheap on Third Party Products
When you’re in need of a car repair, the last thing you want to do is go cheap on a third party product.
Chances are you’ll end up with something that doesn’t work correctly or won’t work at all.
The best solution for this is to go with an OEM part, which stands for Original Equipment Manufacturer.
These will be designed specifically for your vehicle’s make and model, so they’ll be more likely to work correctly.
There’s no point saving a few dollars now if it leads to bigger problems later.
You should also check reviews on sites like Consumer Reports before making any purchases online.
They’ll let you know how well-known the manufacturer is, how often people have had issues with their products, and whether there are any recalls currently being issued.
Do Buy Insured from Direct Providers
Buying your plan directly from a provider will get you a better deal, but you have to do your homework first.
You’ll want to shop around for the best price, so check out state websites or national providers like GEICO. And make sure you know what your deductible is; the lower it is, the more expensive your monthly premium will be.
Know Your Credit Score (two sentences)
Your credit score can have an impact on what kind of car insurance rates you’re offered. When insurers are deciding how much they’re willing to pay for coverage,
they look at how well you’ve been able to pay off your debts in the past. The higher that number is, the better off you’ll be when it comes time to sign up for a plan.
In fact, some carriers will only work with people who have a good credit history,
while others might offer discounts if your score is high enough. Either way, knowing where you stand ahead of time could save you money down the line.
Your credit score can have an impact on what kind of car insurance rates you’re offered.
That’s because when insurers are deciding how much they’re willing to pay for coverage, they look at how well you’ve been able to pay off your debts in the past.
The higher that number is, the better off you’ll be when it comes time to sign up for a plan.