5 Ways to Make Sure You have the Right Insurance Coverage

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There are over two hundred and sixty million registered vehicles in the US. Most of these are passenger vehicles, making America the second largest passenger automobile market in the world after China. All drivers must carry insurance protection. However, many simply pick an insurer when they buy their first vehicle and don’t examine the policy for years. This is simply inexcusable laziness for the most part. The internet gives you every opportunity to do your homework thoroughly when picking an insurer. Being a meticulous saver, I almost exhausted my spectrum internet researching insurers with the lowest premiums when I was getting my first car. For those of you who can’t find the time to delve so deeply, here are five ways to ensure you’re getting the right coverage:
  1. Understand How Your Premium is Determined:

It always feels nice when you’re getting the best value for money. Everyone wants to stretch their dollar as much as possible. This also applies to auto insurance. Polls show that premiums have a huge influence on what policies are chosen by consumers. But, one often ignored point is that premiums can be tailored to each consumer’s individual circumstances and needs. Therefore, it is important to look into how insurers determine premiums. Broadly, your premium is determined by the type of car you drive, where your car lives, and your own driving record and credit history. It also depends on the type of coverage you have (liability, collision, comprehensive). All these factors culminate in the determination of how much premium you are charged. So, you need to analyze if you’re paying too much premium for too little coverage.
  1. Significant Change in Your Situation:

With the economy finally fixing itself, unemployment rates have gone down. Many unemployed people are now back in the workforce, and those already employed are finding better options in other businesses. A change in job status is enough reason to review your auto coverage. Let’s say your new position requires twice the commute. This places you at a higher risk of accidents, which may not be appropriately covered by your current policy. You may have to get in touch with your insurance agent for available insurance types more suitable for your needs.
  1. Compare Premiums in Your Area:

It is normal to wonder what other people in your state are spending on premiums compared to you. The Insurance Information Institute has a breakdown of expenditures on 12-month policies in individual states that might be useful. This can give you an idea of what others are paying. However, bear in mind that many factors influence premiums and these statistics may not accurately represent people with unique circumstances.
  1. Annual Rate Check:

It is good practice to compare rates from other companies to your insurer. This helps you ascertain if you’re getting the best coverage for the amount of money you are spending. You can do this by getting in touch with your state insurance department, which provides guides to available insurance services. There are also several comparison tools available online that allow you to compare insurance policies. Obviously, personalized quotes specific to your circumstances are not immediately available until you get a call back from an insurance agent. Regardless, online comparisons are an efficient way to find a better deal.
  1. Always Ask for Discounts:

Insurers offer discounts to policyholders under certain circumstances. These may include buying a house or an RV, taking driver’s safety courses, or having your teenager get a driving license. Every insurer offers discounts but you may not even be aware of them. You should get in touch with your insurer about what deals they offer, and how you can save money on them. Many insurers offer deals like bundling auto and homeowners insurance that help you save significantly.
It is mandatory for all drivers to carry insurance protection. But mostly it is concentrated on liability insurance. Many people require different types of insurance like comprehensive insurance or collision insurance based on their specific situation. Too many of these people are not even aware of how they can get their insurance policy tailored to fit their specific needs. Worse, too many are paying too much for insurance that doesn’t even fully cover their needs. It is important to evaluate your policy with reference to what others are paying for the same or better coverage. After all, nothing is certain in life and the last thing you want is to be in a situation not covered by your policy. Play it safe, and make the smart decision when it comes to auto insurance.
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