6 Things To Consider When Choosing Car Insurance

You’ve just bought a new car, and you’re itching to take it for a spin. But before you hit the gas and speed off into the sunset, there’s something you need to take care of: car insurance.

But with so many options out there, it can be tough to know where to start. That’s why we’ve put together a list of six things to consider when choosing car insurance. Let’s cover all the bases to help you make an informed decision.

1. Coverage Type

When it comes to car insurance, considering the type of coverage you need is essential to make sure you can keep your car safe:

• Liability Coverage – It’s typically required by law and pays for damage you cause to other people or their property in an accident. It doesn’t cover your injuries or damage to your car, but it can save you from financial ruin if you’re found at fault for an accident.
• Collision Coverage – It covers damage to your car in an accident, regardless of who is at fault. Collision coverage is important if you have a newer or more expensive car that you want to protect.
• Comprehensive Coverage – It covers damage to your car caused by non-collision causes such as theft, vandalism, or weather-related damage. You can check out Rollin Insurance for more information.
• Personal Injury Protection (PIP) Coverage – It covers medical expenses and lost wages for you and your passengers in case of an accident, regardless of who is at fault.
• Uninsured/Underinsured Motorist Coverage – It comes into play if you’re in an accident with someone who doesn’t have insurance or doesn’t have enough insurance to cover the damage.

2. Deductibles

A deductible is an amount you pay out of pocket before your insurance kicks in to cover the rest of the cost of a claim.

For instance, let’s say you have a $2,000 deductible and get into an accident that causes $10,000 worth of damage to your car. You would pay the first $2,000, and your insurance would cover the remaining $8,000.

Typically, the higher your deductible, the lower your monthly premium will be. This is because you’re essentially taking on more of the risk yourself by agreeing to pay a higher amount out of pocket in case of a claim.

However, it’s important to consider your financial situation when selecting a deductible. If you can’t afford to pay a high deductible out of pocket in case of an accident, it may be worth paying a higher monthly premium in exchange for a lower deductible.

3. Premiums

Premiums are the amount you pay on a regular basis for your car insurance coverage. And  the cost of your premiums can vary based on the following:

• Driving Record – If you have a history of accidents or traffic violations, you may be considered a high-risk driver, and your premiums may be higher. But a clean driving record can help you qualify for lower car insurance premiums.
• Car Make/Model – Cars that are expensive to repair or replace will have higher premiums. Similarly, cars considered more likely to be stolen may also have higher premiums.
• Age and Gender – Younger male drivers are often considered riskier and may have higher premiums. In comparison, older women and men may be perceived to have lower risk and lower premiums.
• Location – Your premiums may be higher if you live in an area with high accidents or car theft rates. On the other hand, if you’ve established your home base in a less accident-prone area, your premiums will be lower.

4. Company Reputation

When choosing a car insurance policy, it’s crucial to select a reputable insurance company. Here are some factors to consider when you’re doing that:

• Financial Stability – Make sure the insurance company you choose is financially stable and has a strong track record of paying claims. You can research a company’s financial strength through websites like J.D. Power or Consumer Reports.
• Customer Service – Look for a company with good customer service reviews, as you’ll want to be able to get in touch with them quickly if you have any questions.
• Claims Handling – Research how the company handles claims, including their speed and efficiency in processing claims and resolving disputes.
• Coverage Options – Ensure the company offers the coverage options you need, such as liability, collision, and comprehensive coverage.

5. Claims Process

A good claims process can make all the difference when it comes to dealing with an accident. So, choosing an insurance company with a reputation for efficient, transparent, and high-quality claims handling is essential.

Here’s how the process should go:

1. Report the accident to your insurance company. They’ll ask for details about the accident and may send an adjuster to inspect the damage.
2. Your insurance company will evaluate your claim and determine whether or not they’ll cover the damages. If they do, they’ll provide you with an estimate of the damages and explain the coverage options available.
3. The repair process will begin once you agree to the coverage and the estimate.

However, when evaluating a company’s claims process, pay attention to the following factors:

• Speed – You’ll want a company that’s quick to respond and process claims, so you can get back on the road as soon as possible.
• Transparency – Make sure your insurance company is transparent about the claims process, so you know what to expect every step of the way.
• Repair Quality – You’ll want to choose a company that uses high-quality repair facilities and parts.

6. Customer Service

Good customer service helps you quickly and easily access information about your policy, file a claim, or make changes to your coverage. Plus, your car insurance company will be there to answer your questions and provide support when you need help.

However, don’t settle on the first car insurance option you come across, no matter what people say about it. Instead, look for a company that offers multiple channels for customer support, such as phone, email, and online chat.

Also, make sure your chosen company responds quickly and efficiently to customer inquiries and complaints. They’ll help you get your claims processed faster.