You have probably seen many insurance ads promising the best auto insurance in the market. These ads feed you a lot of promises and offers. When you want to purchase an auto insurance policy, you have many options, and you may not be sure which one to choose. You should make your selection carefully. The right insurance company will protect you if you have an accident or injury, but the wrong one might not even exist when you want to make a claim or renew your policy. Understanding what to consider when comparing auto insurance policies is key to selecting the right insurance company.
Comparing Car Insurance Quotes
One of the most critical considerations for any major purchase is the cost, and insurance is no exception. Compare car insurance quotes based on the costs and the coverage the company offers to get the best deal for your money.
Biggest Cost Factors for Auto Insurance
Insurance companies use various parameters to set the cost of policies for their clients. The money you would pay for a specific policy will likely differ from what someone else would pay for a similar policy. Here are some of the main factors that determine your car insurance quote.
- Vehicle: Insurance companies will consider your car's make and model. Although the latest models may have better safety features, these new technologies may also be more expensive to repair. Sporty and luxury vehicles are generally more expensive to insure than models that tend to have fewer claims.
- Driving record: Your history of violations and at-fault accidents plays a significant role in determining auto insurance rates. The company will examine your driving history for the last three to five years. If you've had an accident during that period, you'll pay higher premiums than someone without any accidents.
- Age and driving experience: Teens and individuals new to driving typically pay higher premiums.
- Where you live: Premiums can be higher or lower depending on your state. Factors that come into play include the frequency and cost of accidents and rates of car thefts and vandalism in your area.
- Credit history: Most states allow insurance companies to use your credit score to determine premiums. The score relates your likelihood of having an insurance loss. Factors determining the score include credit history length, outstanding debt, credit mix, pursuit of new credit and payment history.
- Annual mileage: The more you drive, the higher your premiums will be.
- Deductibles: An auto insurance deductible is the amount you pay out of pocket before your insurance starts paying. The lower the deductible, the higher the premiums and vice versa.
Insurance companies may also consider other factors, such as marital status, gender, education level, occupation and whether you own a home.
How to Choose Car Insurance
You have compared auto insurance policy prices from different insurance companies and want to narrow your search to fewer insurers before choosing one. There are three important additional factors to consider.
The Level of Coverage You Need
Some main types of auto insurance coverage include comprehensive, liability and collision insurance. Cheap plans may not have the coverage you're looking for. Although comprehensive insurance is more expensive, it covers damage to your car not caused by accidents, such as theft, vandalism and natural disasters.
Some coverage is mandatory. According to the Insurance Information Institute, nearly all states require car owners to have bodily injury liability and property damage liability. To get more coverage for yourself and your car, you can go beyond these minimum requirements in your state.
Financial Health of the Insurance Company
Research the financial health of the insurance companies you've picked. Although some companies may offer you cheap plans, these companies may not exist when you need them to pay claims. Check the health of the insurance companies using reports from independent ratings companies like Fitch, Best and Moody's.
It's best to consider top-rated insurance companies with positive reviews from their current and previous customers. Choose an insurer that provides fair and fast claim settlement and excellent customer services, offers help proactively, and helps you review your auto policies thoroughly.
Ask for Discounts
When you compare quotes from different insurance companies, you can also ask for discounts. Prices for the type of coverage you want to buy may vary from one insurer to another. You may still be able to negotiate a discount from the most affordable insurer, but you might have to meet specific criteria to qualify for the discounts. For example, some insurance companies offer discounts to drivers who take driver education classes or meet annual low-milage thresholds.
Some insurers also offer no-claim bonuses. Insurers provide this discount as a reward for not filing claims during the policy period when you renew your policy. Other companies offer discounts if you buy additional types of insurance from them, such as homeowner, RV or motorcycle insurance.
Besides discounts, you can also ask for other benefits or privileges the insurance company provides. AAA membership gives you access to some of the best auto insurance discounts in the market, travel rewards, financial services and other discounts.
How to Find the Best Auto Insurance Rate
When comparing auto insurance quotes from various companies, find out the level of coverage for each cost. The quotes should have similar coverage, limits and deductibles. Be sure to account for discounts and ease of filing a claim. The option with the lowest monthly premium may not be the best option when you consider all the variables.
Get Your Auto Insurance Solutions From AAA Central Penn
At AAA Central Penn Insurance Agency, we pride ourselves on being more than just an insurance provider-we're your trusted insurance broker. This means we don't just offer one-size-fits-all policies. Instead, we work with a variety of reputable insurance carriers, giving us the flexibility to find the perfect coverage that meets your unique needs. Our extensive network allows us to compare options and tailor a policy that not only provides comprehensive protection but also fits comfortably within your budget. By offering you the best coverage at the best price, we ensure that you're always in good hands, no matter what life throws your way.
Comparing auto insurance policies will help you select plans that suit your needs and budget. In addition to comparing the quotes, you should also compare the coverage offered and any other additional benefits. We can help you settle on the best auto insurance plan. AAA Central Penn provides services like auto loans, insurance and roadside assistance to drivers. We can help you choose from various insurance services such as liability coverage, injury protection, uninsured motorist protection, complete coverage, rental car reimbursement, collision insurance and collision coverage. Get an insurance quote, or contact us for auto insurance solutions.
