There were roughly 6.3 million auto accidents in 2018alone. Nobody plans to have an accident, so many people don’t fully know what their financial responsibilities would be if they were to have one.
Premiums, deductibles, liability. Lots of terminologies that many people just glance over when reading it on paperwork.
Have you found yourself wondering if you’re currently getting the best deal with your auto insurance company? Confused about parts of your policy? Good news.
Keep reading below for five questions you definitely should ask your next insurance company.
1. What Coverage Do I Need?
A basic question, but you’d be surprised by how many people don’t know the answer. The answer, however, will depend on exactly where you live.
Most states require liability coverage. This covers costs related to any injuries, deaths, or damage resulting from an accident. Some states also required uninsured or underinsured motorist protection.
Be sure to speak with the agent about other requirements or coverage that would be helpful for you.
2. What is Actually Covered?
Getting into an accident or finding your car damaged in a parking lot is a stressful thing. This is why it is important to understand how your insurance will work before that happens.
Depending on your policy, your insurance may not cover things like tow trucks or rental cars. Ensure you have collision coverage, which covers the replacement or repair of your car after an incident.
Comprehensive coverage is helpful in cases of vandalism or theft. This also covers if you hit a deer or other animal and need repair work.
3. What Discounts Can I Get from my Auto Insurance Company?
While your premium price will mostly be dictated by your coverage and deductible choices, there are many discounts that can help cut costs.
One of the most common ways to save is through multiple policies. If you have renters or life insurance with the same company as your car insurance, they will often give you a discount.
Other auto insurance discounts include safe driving, good student grades, and discounts for hybrid cars. You may also get a discount if you pay your policy in full rather than a portion every month.
4. Out of Pocket Expenses
Make sure you know what your deductible is and be prepared to pay it. Let’s say an accident leaves you responsible for $2,000 worth of damage to your own car. If your policy deductible is $3,000, guess what? Your insurance won’t cover anything.
5. How Does My Job Impact Coverage?
When applying for coverage, you will disclose information on driving habits. This means how far your daily commute is and the nature of your job.
For example, many policies will not cover your car if you use it for sales work at the time of an accident.
Ensure the Best Insurance Deal
You should now feel much more comfortable about finding the best auto insurance company for your situation. Whether you are about to purchase your first or tenth car, understanding your insurance will save you money in the long run.