Shopping for Auto Insurance: Key Considerations

For many people buying auto insurance could be like having their wisdom teeth pulled by a dentist, that too without anesthesia—painful and stinging. Today, we intend to show you how you can make this process simpler and easier for yourself by asking the right questions and looking for the right information.

When shopping for auto insurance, there are three key considerations to bear in mind; price, coverage, and reputation of the agent (or company).


Let’s discuss price first.

No one insurance company has great rates for everyone. If a company is offering a good price to your friend, it may not necessarily offer a great price to you. The reason is companies have their age, income and risk groups prioritized. If you belong to a different age, income or risk group than what the company is targeting, you’re very likely to receive a less favorable quote. Your objective should then be to search for a company that caters to customers like you, so you can find a policy that best fits your budget. The rule of thumb says that you should get quotes from 8 to 12 companies to find that perfect match.


Next, we have coverage.

Different companies offer different types of coverages. The most common ones are:

  • Liability – This is the coverage you get from your insurance company in the event you hit and injure someone or damage their vehicle.
  • Medical coverage – This is the coverage you get for injured passengers traveling with you. It pays a flat amount per person regardless of whoever was at fault for the accident.
  • Underinsured and uninsured motorist coverage – This coverage protects you and your passengers in the event you are hit by a driver who does not have enough insurance or no insurance at all.
  • Collision and comprehensive coverage – Collision pays for the repairs of your vehicle when it hits another vehicle. Comprehensive coverage protects you in the event of vehicle theft, vandalism or fire.
  • Towing coverage –This pays you for any expenses incurred in towing your damaged car to the workshop for repairs.
  • Special equipment coverage – This covers damage to any special accessory or equipment installed on your car.

experiencesYou can choose to extend the coverage your policy offers. Just remember, the more coverage your auto insurance policy offers the more expensive it gets.

Reputation of the agent (or company)

The third and last key consideration to keep in mind when shopping for auto insurance is the reputation of the agent (or company).

You don’t want to be working with an unreliable insurance company that will leave you scrambling in desperation when you need it the most.

One way to find out if a company is dependable is to inquire about their “Best” rating and reading reviews about them on the internet.

So, we hope you found this read helpful, and we were able to give you some good and valuable tips. If you have any questions about auto insurance that you’d like to ask, you can always reach out to us and we’ll try our best to answer them.

Happy auto insurance shopping!