4 Things You Need To Consider When Buying Auto Insurance For The First Time

In most states, buying auto insurance isn’t a maybe – it’s a must. If you have a car, you will need to have auto insurance that covers you in case of an accident. Still, shopping around from auto insurance isn’t quite a cakewalk, so if this is your first time, consider the following things before you decide on which plan to purchase.

1. What Is Covered Under Your Plan? Some insurance plans only will pay for your car’s damages if the accident wasn’t your fault. Others will only cover a portion of the costs of car repairs in the case of an accident. Some insurance plans will ask you to pay the first 500, or even 2000, of damages in the event of an accident. Read the terms of your plan to find out what you should expect if you end up having an accident on the road. Avoid buying a plan which wouldn’t cover the expenses that you aren’t able to afford. And, it’s always good to get a little bit more coverage than what you think you will need. You can never be too careful.

2. How Much Will You Pay? Different insurance companies have different rates, especially when it comes to auto insurance. Get at least 3 or 4 different car insurance quotes for plans with similar coverage before you make your decision. It’s often best to search for auto insurance rates by zip code, since it will also point you in the direction of the best insurance companies for your area.  It could save you hundreds, or even thousands, every year. It’s also worth mentioning that some auto insurance companies also allow you to be billed quarterly, annually, or monthly, so you should also consider looking into getting a plan that won’t be too much of a punch to your wallet.

3. Is The Auto Insurance Company Well Rated? Many insurance companies are cheap for a reason – poor service, slow reimbursements, and possibly even worse reasons. Though insurance companies’ practices generally vary from location to location, it’s crucial to go for a company nearby that has a great reputation with locals. Research any company that you want to do business with before you sign off on a new auto insurance plan.

4. What Are The Cancellation Terms Of The Policy? Let’s say that you get the insurance policy, then realized that you can’t stand having to pay that first $750 when you got into a car accident. You want to cancel your policy and switch to a new one. Will your insurance plan allow you to do that easily? Can you cancel your policy without having to pay a cancellation fee? Are you allowed to upgrade your plan for a better one that is offered by the same company? If not, you may want to dig around and search for another policy that is more flexible and affordable.