10 Steps to buying Car Insurance
1. Starting
We all need insurance for our car. That’s a given. But from who and from where? And how much? Keep in mind that if you do it right, you will have proper coverage and save money. Possibly as much as $1000 over a year.
2. How much is enough?
To start off, find out what is required by law, where you live. This can vary depending on where you live. Then you have to decide how much extra you need. Cautious people might get more than is necessary. Less cautious or people who don’t have a lot of money might get less. But what’s a good rule of thumb?
Experts say to get enough coverage to cover your assets. Not just your car, but all your assets. For example, say you have $50,000 insurance on your car and say your house is paid off. If you get into an accident where the damages total more than $50,000, lawyers could be asking for the keys to your house.
Another thing to look at is your driving habits. Do you have plenty of speeding tickets? Do you only drive very short distances? Do you have a car coveted by thieves? If you answered yes to any of these, you might want to get more comprehensive coverage rather than collision.
3. Review record and policy
Take a look at your driving record. You might want to contact your local motor vehicle branch for this. Any tickets? Any points? Think about waiting for these to expire before looking for new coverage. Chances are you will be paying more if you have a bad record with outstanding tickets.
Also get out your coverage. How much are you paying right now? Monthly? Yearly? Keep these figures in mind as a target to beat.
4. Get quotes
Now, with all your records and numbers ready, head to your computer. Start with the online quotes. For example, Hometown offers online quotes
here . This maybe a little tedious, but you will save money. Keep in mind that some online sources are different. Some give instant quotes some will email them to you later.
5. Compare quotes
Open a spreadsheet or at least jot down some extensive notes here. What are the annual and monthly rates for each one? Is there a contact number for your questions? Any discounts you can get? What about the company itself? Reputable and in good standing?
6. Start phoning
Once you have exhausted the online sources, grab your phone book and start calling. Make sure you have your records and licence with you. Confirm the price given to you. Ask them to email or fax it to you for your records.
7. Any discounts?
There might be discounts above and beyond the quoted prices, saving you even more money. Some companies give savings on safety equipment on your car, good driving records, credit history, professional affiliations, etc.
8. Choose the right one
By now you will have a lot of the information you need. Now you have to dig a little deeper. You might already have a company that seems to be the cheapest. But is it a good company? Give a call to some of your local body shops and ask their opinion. Are there any complaints with this company? Check with JD Power and take a look at their customer surveys and see if your company is listed there. Type the name into your favourite search engine along with the word “complaints” and see what happens. Take everything you hear with a bit of grain of salt, but consider who is telling you. And trustworthy they are.
9. Review policy
Now that you have your company is mind, read the policy carefully. Two things to look for: retain your right to sue and aftermarket parts repairs. If your contract waives your right to sue, you could be at the mercy of your insurance company should you have a grievance with them later down the road. Keep your legal rights. Secondly, if your contract allows or even demands aftermarket parts for your car in case of damages to it, you might want to keep looking. With new cars, many people demand original parts by the original manufacturer to keep the value and durability of the car up.
10. Cancel the old one
Now that you have your new coverage, cancel your old one. And make sure you have proof of purchase of your new coverage with you at all times.
