Don't Get Taken for a Ride --
Save Money on the Auto Insurance Coverage
That's Right for You
Auto insurance is most likely one of those purchases that you feel stuck
with; car insurance issues are generally confusing and, in most states,
auto insurance is mandatory. However, even though you have to buy it and
might have to learn a little bit about what your auto insurance coverage
really entails, you can save money on your auto insurance by comparison
shopping among auto insurance companies.
So, how do you ensure that you get the best auto insurance policy at
the best car insurance rates available? Here are several tips you should
follow to get the right auto insurance policy at the right price.
Understand the auto insurance coverage you're buying.
Remember when buying auto insurance that, if you get into an accident,
you're not typically asking yourself how much you saved on your auto insurance
coverage, but rather, whether you have enough coverage. Take time to understand
your current auto insurance coverage and why you're carrying it.
You may be surprised to find that you're carrying liability limits that
are too low, or that you don't actually need towing coverage because you're
already a member of a motor club. Always remember that the price isn't
right unless you're adequately covered.
Think about higher limits and higher deductibles.
To get the most value
out of your auto insurance dollar, a good rule of thumb is to select the
highest liability and deductible levels you can comfortably afford. Why?
Higher deductibles save you money on auto insurance premium that you can
then spend on higher limits, which enhances the protection your auto insurance
provides you.
Something quite a few people are unclear about is the trade-off you're
making when you choose your comprehensive and collision deductibles. When
you choose a deductible, think about which you'd prefer -- paying more
now or paying more later if you ever need to file an auto insurance claim.
If you select a higher deductible, you'll have a lower auto insurance
premium, but you'll have to pay a greater amount out-of-pocket if you
get into an accident or have a loss. If you choose a lower deductible,
your premium will be higher, but you'll pay less out-of-pocket if you
get into an accident or have a loss.
If you choose a higher deductible to save on your auto insurance premium,
think about spending a bit of that savings on purchasing higher limits
for some of your auto insurance coverages. Remember that car insurance
is protection against a worst-case scenario. Your limits should be high
enough to protect your property and assets if you get into a serious accident.
Often, for just a few dollars more in premium, you can increase the protection
provided by your auto insurance policy by thousands of dollars.
We know that's a lot to think about. That's why we created the Esurance
Coverage Counselor planning tool. Use
the Esurance Coverage Counselor for help in determining your auto
insurance needs. After you answer a few questions, our interactive Coverage
Counselor will offer you a set of personalized recommendations about auto
insurance coverage types, limits, and deductibles.
Use the Internet to shop around.
While most people research cars or other big-ticket items they're thinking
about buying, few will do the same when it comes to auto insurance, even
though auto insurance can constitute a large part of your household budget.
As with any large purchase you're considering, the more auto insurance
research you do, the better equipped you are to make the most cost-effective
auto insurance choice.
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