Choosing what kind of insurance to get is an important financial decision, but insuring a brand new car can be an especially difficult decision. These questions and items to ponder should help you think your options through carefully before making up your mind about what kind of auto insurance policy fits your needs.
There are some truly awful auto insurance policies out there, no doubt about it. Even some insurers with reputable, established names don’t offer the best insurance policies, and there’s no shortage of horror stories floating around about unscrupulous claims adjusters and deadbeat agents who don’t care about what happens to you or your car after you’ve paid your premiums.
While certain isolated incidents are unavoidable, the following are questions and talking points for your initial discussion with a potential insurer for your new car, and they’ll help you determine whether or not you’re looking at the best deal out there on an auto policy before you sign on the dotted line.
What Does This Auto Insurance Policy Cover
First and foremost your first question to any insurance agent should be "What does the insurance cover?" The price might be right, but will the policy bail you out if you’re hit by an uninsured motorist? Does this insurance cover you for another new vehicle if your own nearly new car is damaged beyond repair? Or would they significantly undercut you based on depreciation the second you drive the car off the lot, giving you half of what you just paid for it in the event it gets totaled?
Does The Insurance Company Provide Any Discounts?
Another line of questions should cover possible policy discounts. There are numerous policy riders that can provide you with savings to your premium. You may ask about any discounts for the great safety accessories you just paid the dealer for? Many insurers will give you a break on your premium if you get anti-lock brakes or anti-theft systems. If the company you’re considering doesn’t give any such discounts you could be looking at a warning sign.
What other breaks can the company give you? Most good insurance companies will throw you a bone on a number of points, taking a nice bit off your premium for things like a good driving record or the completion of safe driving courses. Others, though, offer additional discounts that can be very beneficial if you qualify for them. Some of these might include discounts for keeping the car garaged overnight, having only one authorized driver (difficult if you’re married, but maybe not if you’re single), or keeping the annual mileage low. These discounts can be significant, and some insurers won’t ask you for that information; it’s often up to you to find out whether you qualify for any perks by asking.
How Forgiving Is The Insurance Policy For My First At Fault Accident?
While most insurers will significantly raise your rate as soon as you’re found to be at fault in one accident (which can be very difficult and frustrating for anyone who selected a policy for its affordability in the first place), others will actually let the first incident slide and wait until it happens a second time before raising your premium. Be sure to get the facts on this before agreeing to a new auto policy – it’s a big one.
Various Other Considerations When Getting Auto Insurance Quotes
Does the agent you’re talking to seem to be “phoning it in”? Are you a real client, or just another paying numbered customer? This isn’t really something you can ask them – but use your judgment and answer honestly. An unenthused auto insurance agent is a very bad sign. If this person can’t muster any enthusiasm when signing you up, how hard do you think he or she will work to get you your money on an insurance claim?
Take Your Time In Making Your Decision - Auto Insurance Is A Big Deal
There are a number of good insurers out there, and you might have noticed by the influx of auto insurance ads in recent years that it’s a competitive industry. This can be used to your advantage if you play your cards right. After you’ve gotten all your quotes and asked all of the above questions (and any others you can think of), take some time and do the math. Imagine different scenarios: How much will it cost if my new car was totaled? How significantly will my rates go up if I rear-end someone at a stop light? What if I decide to add my husband or wife to my policy? Would that make this insurance more expensive than my second-choice policy?
Choosing an auto insurance policy and carrier is an important financial decision to make. Be sure to think it through carefully before making up your mind.
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