Important Questions to Ask When Buying Car Insurance
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UPDATED: Oct 19, 2021
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- When you are buying car insurance, it’s important to ask as many questions as necessary to be sure about your choice
- Although there are several important and optional questions you can ask, it’s crucial that you focus on the policy specifics before you purchase coverage
- Once you’ve purchased your policy, it is often difficult to make changes, alterations, or add conditions to your coverage options
- Additionally, there are questions you’ll need to ask yourself about your car and how you plan to use it
- You can speak to different insurance providers before choosing your coverage, and you may want to consider talking to a trusted friend or family member about important items to consider
Whether it’s your first time purchasing car insurance or you’ve had car insurance for years, it’s important to ask the crucial questions before agreeing to any policy purchase.
Insurance policies can carry different terms and conditions based on the provider, the state requirements, your history, the type of car you have, and the intended use. Consider insurance policies from different providers before making your final decision.
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Questions to Ask Yourself
There are several important questions to ask yourself before buying car insurance, which include:
- What coverage choices are you required to carry?
- What optional coverage should you select?
- Does anyone else hold a financial interest in your vehicle?
- Who will be driving your vehicle?
- What will you be using your vehicle for?
When shopping for insurance coverage, there are required coverage options and then optional coverage choices. The requirements may vary based on the state.
Most insurance providers will give you coverage quotes that include the mandatory coverage options by default since they cannot write policies without these coverage options.
However, you should assess your vehicle’s value and your needs to decide if optional coverage choices need to be added to your policy.
When a third party carries financial interest in your vehicle, which is common when you have a lease or loan in effect, there are often requirements in place for physical damage coverage for your car.
Another important consideration is who will be driving your vehicle since high-risk or teenage drivers can impact the premiums for your coverage or the available coverage choices.
It’s essential that these drivers are listed on your policy before a loss occurs, since some providers may be unwilling to cover these drivers if they are not listed when a claim is filed.
Your vehicle’s use is something else to consider when you are searching for coverage since different policies are used for commercially used cars when compared to personal use cars.
If you are using your vehicle for work-related purposes but do not carry the proper coverage, losses that occur when using your car for work may not be covered; this can expose you to exceptionally high risk.
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Questions to Ask Potential Providers
There are several important questions to ask any potential provider, which are often different than the questions you should ask yourself. These questions can include:
- What types of losses will your policy protect you from?
- What are the policy exclusions and are there any exclusions regarding non-listed drivers?
- How much will your insurance deductibles be, and when will they apply?
- Are there opportunities to reduce your premium through discounts or safe driver programs?
One of the most important questions you can talk to any potential provider about is the types of losses you are covered from, as well as the types of losses that are excluded.
Understanding the situations that your policy protects you in is necessary to understand what the provider is offering, but understanding the situations where you are not covered is often more crucial.
Before making your choice regarding any potential policy, assess your risk factors, your needs, and your state’s regulations. There may be exclusions, either from your provider or your state, regarding other drivers or non-listed drivers as well as excluded loss events.
These exclusions can often be a deciding factor when it comes to choosing an insurance policy, so speak to any potential provider at length before making a choice.
It’s important to discuss the minimum requirements for insurance in your state with your insurance carrier since they can help assess your risk exposure and the coverage you’ve selected.
When it comes to mandatory insurance requirements, the minimum levels of coverage may not be enough for your needs.
Any potential provider should be able to address this concern with you, as well as helping you understand the difference between the types of available coverage and the applicable limits.
Deductibles that are listed on your policy are another piece of information that you should ask questions about, as this can influence your policy pricing as well as future claim settlements.
Additionally, it’s essential that you know when a deductible applies to your claim, how it works through the specific provider, and situations where you may be exempt from the deductible.
Another important question to discuss with any provider is ways to reduce your premium cost while still meeting your insurance needs and protecting yourself from loss.
There are often different ways to receive insurance discounts or reduced premiums, which can include safe driving courses, carrying higher deductibles, and carrying multiple products with the same provider.
Choosing Your Coverage
When you’re purchasing car insurance, it’s essential that you ask some pointed, important questions before agreeing to any policy purchase. The coverage needs for your policy can vary based on several factors, which include:
- any state requirements
- your driving record
- your car’s intended use
- the style of car you own
Before you choose car insurance, make sure to assess your budget, risk factors, and coverage needs; these vary from person to person. Every insurance carrier offers different coverage options, and these can be different based on the carrier’s risk profile and their coverage terms.
Remember that your gender, age, insurance history, and driving record are all factors that insurance carriers will take into consideration.
Even seemingly unrelated factors, such as your credit score and any defaults or bankruptcies, can impact your options or your premiums.
Additionally, the drivers you choose to list on your policy can impact your coverage; some states require anyone that may use the vehicle to be listed before they can drive it.
Get the coverage you need for the best price by using our free car insurance rate comparison tool below.