Do you know how to compare car insurance offers? Experts recommend changing or at least shopping for car insurance policies at least every three years to make sure you are not overpaying your premium. However, very few really talk about how to compare car insurance offers, especially if you are shopping for a new insurance company for the very first time.
Doing a background check
The financial health of your prospective insurance company is an important factor to look into. While it’s certainly not the only thing you should be looking at, it helps to compare car insurance offers also based on the stability of the company you are getting the insurance from. While it may cost you more money to get insurance from an industry main-stayer, the risks are lower. This means that you are least likely to have any problems making claims in case you face an accident.
Reading up on complaint ratios
While financial stability is important, most car insurance holders claim that checking each company’s complaint ratio is more beneficial. This just lessens the chances that you will be having difficulties claiming your benefits later on. When you compare car insurance offers, don’t be blinded by low premiums or by the number of extra coverages they have to offer. What you are really looking for is a company that is highly reliable.
Comparing exact plans/offerings
It is useless to compare car insurance offers unless you are comparing the very same insurance policies. When you use online calculators, punch in the same types of benefits per company so that you can objectively compare which car insurance company can give you the best deal.
You might also want to experiment on raising your deductible. Simply put, this is the amount of money you are willing to shoulder from your own pocket should anything happen to you on the road. You might find that in trying to compare car insurance offers, you will also save a lot of money if you just raise your deductible to the maximum amount you can shell out. This way, you will be paying less on a monthly basis, and only shelling out real cash if an accident happens.
When you compare car insurance offers, you will find that companies really compete hard to get clients. They will offer any extras including side mirror replacements, CD replacements, car rental coverages just in case your car needs to be repaired or is totaled, and so on. You need to be very careful, though, because taking these optional coverages can hike up the price of your premiums.
While adding these extra coverages are not bad if the same price is applied (or if the extra coverage is offered for free), choosing to include them could be an issue if the added cost is hefty. Try to be smart when opting into these extra coverages. Make sure you only agree to have them if you really need them.
Always remember that the best car insurance lets you breathe easy that you won’t have to shell too much should you figure in an accident. However, it should not be so expensive that you are unable to keep up with your payments.