Comparing Auto Insurance Policies

By Compuquotes Team on May 12th, 2008
Auto Insurance

When you're looking for a car insurance policy, it's a good idea to get quotes from several different providers. Rates and coverage can vary greatly from one company to another. The best way to be certain that you are getting the best possible deal on your vehicle insurance is to see what options are available to you. Gathering information about a number of different policies allows you to make an educated decision about your vehicle insurance.

  • Requesting Quotes

Many factors impact the cost of car insurance. Vehicle insurance prices are affected by factors such as the type of car you have, the age of the vehicles, the size of the metropolitan area in which you live, how much your drive, your driving record, your age, and a number of additional variables. The fact that you know someone who got the best rate from a particular company does not mean that the same provider will be the best choice for you.

Because rates can vary so much, you can't get realistic pricing without first sharing information about yourself with an insurance company. The only way you'll be able to compare realistic coverage costs is to request quotes from the insurance companies from whom you are interested in purchasing insurance. When you request a quote, you'll need to share specifics about yourself and your vehicle so that the prices you receive will be as accurate as possible.

When you receive several different quotes, it's important to closely evaluate each option available to you. Don't assume that the policy with the lowest price is necessarily the best value. You'll need to look very closely at the type of coverage included with each option. The least expensive choices might have higher deductibles, lower limits of liability, or feature only minimal coverage.

  • Uninsured Motorist Coverage

When comparing policies, one of the things you should look for is whether or not the different options include uninsured motorist coverage. This type of coverage protects you in the event you are involved in an accident with an individual who does not have vehicle insurance. It adds a little bit to your premium cost, but can be very valuable protection.

  • Deductible Considerations

It's also important to look at the exact deductible amount for each type of claim associated with the policies you are considering. A policy with a $2,000 collision deductible is going to cost less than one with a $500 collision deductible. When choosing between policies, you'll need to strike a balance between keeping your premiums low and selecting deductible amounts you can afford to pay in the event you need to file a claim.

  • Making Sense of Limits of Liability

Insurance policies often vary greatly in terms of limits of liability, and those with lower limits are often less expensive. Of course, by choosing lower liability limits to save money on your premiums, you open yourself up to greater liability in the event of an accident.

If you have a $300,000 property damage liability limit, that means that the insurance company will be responsible for paying for damages you cause up to this amount, less your deductible. If you're limits of liability are $100,000, your coverage will cut off at this amount. Any damages above and beyond the limit will be your responsibility.

  • Making Fair Comparisons

One of the best ways to make sure you are fairly comparing insurance policies is to request quotes for specific coverage. If each company provides you with pricing for identical policies, with the same deductibles, limits, inclusions, and exclusions, you'll be able to determine which option provides you with the best value.

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