As an insurance specialist, I’ve seen a wide range of automobile policies. Some chocked full of coverage and others – not so much. However, how well they work for the consumer always depends on the individual. If he or she understands the following key essentials to selecting great auto insurance, all is well. If not, the outcome is usually disastrous.
1. Learn basic insurance terms – It’s hard to understand what you’re buying if the lingo used sounds like a foreign language to you. So, do a bit a research and get an understanding of basic insurance terms. Before you pay a premium, you should understand the difference between comprehensive and collision coverage. Fortunately, you don’t have to attend school to acquire this knowledge. Just visit a few websites geared toward the subject of auto insurance. (See: Glossary of Insurance Terms )
2. Understand your financial needs – Are you a single person driving an old junker with few assets or a retiree who owns a home and luxury vehicle? Categorize yourself and assess your financial status. If you don’t have much to lose, you can get away with a bare bones auto policy. On the other hand, if you have a life time of hard work to lose, you need to pay the extra money for an auto policy with higher limits as well as specialty clauses. Don’t screw yourself in the long run by over insuring or trying to pinch a few pennies. (See: How Much Car Insurance Do You Really Need ?)
3. Stick with reputable insurers – You may not like everything State Farm, Geico or Pemco stand for, but these industry giants do have something in common. Unlike smaller companies, they are reputable and have the ability to pay you after a claim. These two factors are important aspects for any insurance company. You don’t want to deal with an unknown entity in this world unless you’re prepared to pay a heavy price. Also, most well-known companies offer a wide-range of services and products that help their clients avoid unnecessary phone calls to an already overwhelmed insurance agent. (See: Best Car Insurance Companies)
Use these three key essentials to selecting great auto insurance and get the coverage best for you. Otherwise, understand you may be less than satisfied after submitting a claim. For more information on the subject of insurance read – “When Standard Auto Insurance Isn’t Enough”.
Source – Self.