How to pick the best auto insurance in 2019
Your vehicle is an expensive and delicate piece of machinery. There are many moving parts, and each one works in perfect harmony to get your from A to B. Whether you use it for business or leisure, it quickly becomes an indispensable tool in your life.
If anything happens to your vehicle, you need to be absolutely certain that you can repair it quickly and have those expenses covered. This is why you need to find the best auto insurance for your particular needs.
Rather than just signing up with the first policy you find, it’s important that you take the time to properly investigate the options that are out there. This will help you to not only save money, but to get a policy that offers you favorable terms and protects you and your investment.
But what does that investigation process look like?
We have put together a guide to help you ensure that you get the best insurance. It’s a simple one, and we hope that it helps you.
But first, let’s take a look at why great auto insurance is so important and some other key questions that we need to understand.
Why you need auto insurance
Nobody likes to think about being involved in an auto accident, but it’s part of being a responsible person to be prepare for those unfortunate eventualities. If you are unfortunate enough to be involved in an accident, your insurance will be responsible for covering the expenses that are related to it. That includes damage to the vehicles, passengers, and pedestrians who might have been involved.
It is a legal requirement to be insured (but there are odd exceptions and you should be sure to properly understand your situation), and it also helps to cover you in the event that your vehicle is stolen, vandalized, or affected by fire.
If you do not have the appropriate cheap insurance while driving your vehicle, you could find that you will be fined and even disqualified from driving. The vehicle that you use can also be destroyed in these instances.
How are prices for auto insurance calculated?
The prices for auto insurance are complex and established according to a variety of factors. Many people complain that premiums are high, and some groups of people will find that it may be more expensive for them based upon certain criteria.
The cost is calculated by factoring in things like age, location, the vehicle that is being drive, the occupation of the driver, where the car is kept, and what it is being used for. Of course, criminal history and the nature of it will also be taken into consideration.
Age is a huge factor, given that studies show younger people are more likely to be involved in accidents when driving due to inexperience. Some believe that this is unfair, and it’s one of the reasons that the main parties looking for the best auto insurance possible are young people.
Unfortunately, many bad actors try to capitalize upon this search for cheaper insurance, so make sure that your insurance is properly regulated by insuring authorities. This will help you to ensure that the policy you buy is above board and will pay out should you need it.
What is a no-claims bonus?
You may have heard of the no-claims bonus before. The way that it works will vary from one country to the next, but generally, every year that a person drives without making a claim gives them a years no-claim bonus. In the UK, for example, this goes up to 9 years.
These bonuses count as discounts and they help to make the prices of auto insurance cheaper. In fact, some car insurance providers can offer amazing discounts on insurance the more no-years claims bonuses are accrued.
Finding the best auto insurance
Now that we have a common understanding of some key concepts, it’s time to take a look at how you can get the best auto insurance possible.
Research, research, research
As the number of insurance providers continues to increase, there are more options than ever before and you’ll have a better chance of finding one that fits with your specific needs. It also means, however, that you might find it more difficult to find the option that is right for you among the crowd.
This is why we recommend that you take your research seriously and give yourself an appropriate amount of time to find the right option. Rather than rushing, you should relish this opportunity and realize that it’s your chance to do something positive for your future finances and safety!
There are a wide range of price comparison sites out there, and you should be certain to use as many of them as possible to get a good idea of which providers can offer you the best policy. You’ll begin to notice patterns, and you might even discover that one particular provider might be best for your particular needs.
Read customers reviews, too, to get an understanding not just of the policy but the level of service that you can expect to receive. You could find the best policy terms ever, but if the customer service is terrible, it might be worth nothing.
Ask for quotes
Don’t be afraid to approach providers and ask them to create a policy catered to your specific needs. They want your business, and you should feel comfortable making them work to your needs. This is a great way to get a personalized policy that isn’t just off the shelf.
This helps you to get a policy that works for you, and also allows you to make a direct link with the provider. This can help you to get your questions answered while also giving you an indication as to the level of service that you can expect to receive.
Think about deductibles and insurance limits
You should configure your limits and deductibles to help you feel comfortable. If you’re willing to take on some more risk and you’re comfortable with it from a financial and personal perspective, you’ll be able to find the best auto insurance for you that doesn’t break the bank.
Be sure to play with different price comparison tools to see which balances you can strike to get the best results and a policy that you’re truly happy with.
Adjust your policy
You should take advantage of changes in your life to adjust your policy. Recently married? Many providers offer a lower rate for those people who are part of a married or domestic couples. Likewise, perhaps you’ve recently moved into a safer neighborhood. This could mean that your risk of accident decreases, and therefore your rate.
Don’t be slow to communicate these types of changes, given that each one could help you to get the most from your auto insurance policy.
Confirm that providers are accredited
There are some illegal providers who offer insurance policies that are not properly accredited. These policies will not protect you in the case that you need them, so they are to be avoided.
You should be sure to investigate the appropriate credentials that are needed in your country, and ensure that the policy you choose complies with them. This is another reason why it is so important for you to investigate the providers on review platforms around the web.
Ask for recommendations
Auto insurance is a complicated topic and many people are looking for the best deal possible – be sure to make the most of the work that other people have already done! People in your life will all be insured if they have a vehicle, so be sure to ask them for their thoughts and experiences with particular providers.
By getting this immediate feedback, you will be able to get a firsthand perspective on providers without having to worry about the accuracy of what you read online. This is important, because there can be many fake reviews that circulate online.
Ask your driving instructors
If you pass your test, you should also be sure to leverage the experience and industry insight that your instructors might have. You should be sure to ask them if they have a particular recommendation of a provider in the local area which offers great rates to newly-qualified drivers. This will help you to get recommendations that are based on reality and also serve your local area.
We hope that this look at how to find the best auto insurance has been helpful for you. The landscape is complex and competitive, and there are many policy providers vying for your attention.
You should use this position to your advantage to ensure that you’re actively working to get the best auto insurance deal possible. If you manage to make a significant saving on your policy, you will find that over the course of the year this can result in large sums.
We wish you all the best on your journey – drive safe and good luck!
David is a financial expert who graduated from the University of Fordham (Master in Finance) in 2001. He has 10+ years of experience in private equity and wealth management. With strong expertise in senior-level financial planning, personal financial analysis, and mortgages, David knows his way around personal finance. Before working at CCR he used to be a financial analyst at McKinsey.
- Cash Management
- Trade Finance
- Working Capital Finance
- Student Loans
- Wealth Management