October 12, 2017

Shopping for Insurance online

Basically, there are two ways you can shop for auto insurance online:

Shop for quotes directly from a car insurance company’s website.
Shop for quotes from websites that let you compare many quotes from several providers.

Although both are viable options, the second option allows you to shop more efficiently and effectively, as you don’t have to look up names of various insurance companies and visit their websites on your own.

Get Clear on Your Budget

Before you begin shopping for car insurance, make you sure know how much you can reasonably afford.

Price should never be the only factor when choosing an auto insurance policy (you need adequate coverage, after all), but if you choose a policy you can’t afford, late or skipped payments could lead to cancellation of your policy. A resulting lapse in coverage can lead to a number of consequences, including:

Tickets.

License suspension.

Higher car insurance rates in the future.

So, as you shop around for quotes, take note of those that offer the exact coverage you need at a price you can afford. Always remember that cheap car insurance does not necessarily mean good car insurance.

Gather Your Information

When you start to shop around, you'll need to share information of your own, which may include:

Name and address.

Date of birth.

Type, year, make, and model of your vehicle.

Primary type of use for your vehicle.

Zip code where your vehicle is kept overnight.

Ownership status of your vehicle.

Marital status.

License status.

Social Security number.

Highest level of education.

Auto insurance history.

Information about other drivers to be included on the policy.

Decide Which Coverages You Need

First, understand that most states require some form of liability insurance either in the form of a liability insurance policy or another proof of financial responsibility, such as surety bonds.

After that, it’s pick and choose. Some of the post common forms of coverage include:

Collision: Unlike liability insurance—which covers the other party’s damages—collision insurance covers YOUR damages should you be involved in an accident.

Comprehensive: Comprehensive insurance covers loss and damages to your vehicle unrelated to traffic accidents. Covered events usually include theft, vandalism, weather conditions, and natural disasters.

Uninsured and underinsured motorist (UM/UIM): These types of coverages protect you should you be involved in an accident with a driver who doesn’t have enough—or any—car insurance.

Personal injury protection (PIP): PIP covers your medical expenses, lost wages, and funeral expenses if the other party’s liability coverage isn’t enough.