Tips to Keep in Mind Before Purchasing New Car Insurance
Car insurance: it’s an unavoidable part of modern life. While shopping for car insurance is something we hope to get through as quickly as possible, it’s important to not rush into a new car insurance policy. Policies are no small expense, and while many insurance agencies will tell you they offer the lowest rates, if you don’t ask the right questions, you could be paying extra money for coverage that doesn’t do as much as you think it does.
So, before you pick up the phone and agree to a policy from any car insurance provider, consider the following.
Think about the type of car insurance you need. “Isn’t there just one?” you might be wondering. Not exactly. Under the larger car insurance umbrella, you’ll find different types of coverage to choose from, like collision insurance, comprehensive insurance, and personal injury protection insurance, just to name a few. They each address expense and liability in a different way. While these selections are often up to the policyholder (you), some states do require that drivers have a specific type of coverage.
For example, if you live New Jersey, Michigan, or Florida (or nine other states) you’re required to carry no-fault insurance, which means your policy pays for your medical bills, regardless of whose fault the accident was. This is different than traditional insurance, in which one driver is assigned fault and their insurance company pays for damages incurred to both parties. It’s important to know what your state requires.
Get a sense of the going rate. To estimate the cost of your new car insurance policy, it is best to request a quote from multiple carriers. Rates often fluctuate, so you want to make sure the deal is falling in your interest. That’s why working with an independent agency, who represents several different insurance companies, is the best solution. Independent insurance agencies, like Schechner Lifson Corporation, works in the best interest of the customer. With us, you can rest assured we’ll find the best rate for your situation.
Determine the deductible you can afford. Your deductible is the amount of money you’ll owe out of pocket before your insurance kicks in. Most deductibles start at around $500 and go upward. It’s important to have 100% clarity on a policy’s deductible. For example, you don’t want to discover your policy has a $2000 deductible after the fact if coming up with $2,000 at once would put a strain on your finances.
Ask about payment policies. Rarely will an insurance carrier require you pay to for a policy in one lump sum upfront (most request monthly or annual payments). However, you may want to ask about conveniences like the ability to put extra money toward your policy certain months, or installment plans that allow you to pay just the premium on your plan. It’s also wise to inquire about any subtle installment fees and required down payments. You want to know exactly how much you’ll have to put toward your car insurance policy when all is said and done.
Ready to shop for your new car insurance policy? Let the insurance experts at Schechner Lifson Corporation help you get started today! We’re committed to finding you the best policy to fit your lifestyle.