Why Drivers Should Compare Car Insurance Quotes

Why Drivers Should Compare Car Insurance Quotes

Not everyone is excited when it comes to comparing car insurance quotes, but by doing this task drivers can save a lot of money. Although insurers look at similar factors when it comes to setting rates, they use different algorithms. The same driver can get two completely different premiums from two different insurers. To find the cheapest rates, drivers should compare multiple car insurance quotes from different car insurance companies.

To properly compare car insurance quotes, drivers should do the following:

Gather information. 

Drivers will need to fill in personal information such as the address, date of birth, occupation, driver’s license and marital status of everyone they want included on the policy. They will also need to complete vehicle information like make, model, year, mileage, VIN, and data about their driving history in the last five years such as claims, violations, and tickets. If the drivers had completed driving courses, they should mention them. Furthermore, they will have to add the current or previous insurer’s name for anyone on the policy or in the household.

Choose the right coverage levels. 

Liability auto insurance protects policyholders from the worst-case scenario by providing a cushion between their assets and the amount they’re on the hook for. Liability coverage has three parts: bodily injury liability, total bodily injury liability, and physical damage liability. For a 100/300/100 limits option, the insurer will reimburse up to $100,000 for bodily injuries per person the policyholder injures in a crash, up to $300,000 total for all bodily injuries caused by the policyholder in a crash, and up to $100,000 for any damage to a property caused by the policyholder. In some states, the policyholders will be required to get personal injury protection (PIP), medical payments coverage (medpay), or uninsured/underinsured motorist coverages.

Decide if full coverage is needed. 

Besides liability coverage, full coverage contains additional policies like comprehensive and collision coverages. Collision pays for damage to a policyholder’s vehicle in an at-fault accident, damage to a vehicle that hits objects like a pole or a fence, damage to a policyholder’s vehicle that was caused by another driver. Comprehensive coverage pays for car theft, damage caused by weather like tornadoes, hailstorms, or hurricanes, fire, floods, explosions, falling objects, animal collisions, and vandalism. 

Collect as many quotes as possible and compare them. 

Drivers should compare quotes from at least two or three insurers. When comparing quotes drivers should also include offers from smaller local or regional insurers. To properly compare quotes, drivers should make sure that they compare quotes that each contains the same levels of liability, the same deductibles for full coverage, the same drivers and cars, and the same discounts they are eligible for.