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Top Pitfalls of Car Insurance Deals

By JP - March 05, 2020

If you or a loved one has ever been involved in a car accident that ended up causing physical harm or damage to your vehicle, you undoubtedly know just how important it is to have trusted car insurance. If you’ve been lucky enough to steer clear of any major car issues, it’s important to plan ahead and know you’re in good hands! The best thing to do is to review all your options.

Motor vehicle insurance is required in most American states and covers liability and costs if the car is lost to damages. Depending on the type of coverage the driver pays for, varying degrees of insurance are available. Medical coverage and property damage costs are usually accounted for BUT make sure to research your best options before settling with the first insurance company you might come across.

How do I start to research the best car insurance?

Pitfall #1: Not doing your online research

The first and most important thing to do during this initial phase of research is to request quotes from multiple vendors. Head to each company’s website to find out basic information. The home page usually provides a thorough description of all the products and services that are offered. Usually, you can request a quote directly from the company website. This can save you tons of time and, in the long run, can save you the headache of losing a ton of money!

An insurance agent should then contact you with an estimate of what your rate might be, depending on the carrier. Make sure to give as much information as possible when requesting your quote so the information provided is as accurate and up-to-date as possible.

What should I keep in mind?

Pitfall #2: Not comparing quotes

As is often the case, one size most certainly does not fit all. The best car insurance company for one consumer will not necessarily turn out to be the cheapest option for another consumer. A lot of the variation depends on the state you’re driving in and what kind of vehicle your policy covers. Bottom line: after you’ve requested and received all your quotes from your online search, compare prices using this amazing tool. Buckle down and take the time to weigh the benefits vs. monthly payments. The time spent comparing will pay off in the long run.

Just as quotes may vary, there are also multiple types of insurers. We’re used to hearing about the same major insurance companies: Allstate, Geico, Progressive and State Farm, mostly because they have the biggest advertisement budgets. These four mega-companies account for half of all American automobile insurance business. Having said that, there are other smaller, but possibly more affordable, fish in the proverbial sea. Regional insurers may have lower rates and can often offer more personalized customer service:

How can I save money?

Pitfall #4: Not digging deeper for deals and discounts

You may be able to access discounts or special deals with a bundle package, pairing car insurance with homeowner’s insurance, for example. As well, look for options to insure more than one car on a single policy or go paperless and the insurance company might knock off a few bucks. You could agree to make lump payments that might promise lower rates. Also, if you’re a member of certain professional organizations, ask to see if your affiliate group gets a discount:

Resources:

www.thebalance.com

www.nerdwallet.com

www.trustedchoice.com