What Are the Most Important Features to Consider Before Purchasing Car Insurance?

Important Features to Consider Before Purchasing Car Insurance

Before signing on the dotted line, drivers should learn what features are the most important to consider before purchasing car insurance. While a company advertised on TV every day may seem like a logical choice, others may choose the company their friends use. These may both be the easiest options, they’re not always the smartest choice. Choosing the right car insurance company or policy is something that should be carefully considered. Here are some features worth considering before making the purchase.

Types of Insurance Drivers Need

Every state has a minimum amount of liability insurance a driver must carry on their vehicle, but there are additional coverages beyond just liability. The value of the vehicle or if there if there is a loan on the vehicle will play a role in the type of coverage required. Typically, vehicles of high value are insured with full coverage while low-value vehicles often have just liability and possibly comprehensive. Here are the most common types of car insurance:

  • Collision – pays for damaged done to the vehicle by the owner/driver
  • Comprehensive – pays for damages to the car from non-collision causes, such as theft, deer, storms
  • Uninsured or underinsured motorist – covers damages done by other drivers who don’t have insurance or are under-insured
  • Personal injury protection – covers medical bills to driver and passengers from accidents caused by the driver
  • Gap – offers additional coverage so the driver gets enough to cover the damages when the value of the car isn’t enough to fix or replace

Who Will it Cover?

This is something that many drivers fail to learn prior to purchasing auto insurance, but it’s an important feature to consider. A driver may have a teenage driver just learning to drive. It’s important to learn if the policy will cover that individual. It’s also important to learn if the insurance policy will cover drivers outside of the family if they’re driving the owner’s car with the owner’s permission. Not all insurance companies will pay for drivers outside of the family or those that are not listed on the policy. It’s important to find out who is all covered on the policy.

Price

Many things can affect the premium a driver is required to pay for the auto insurance. These may include driving record; age; marital status; gender; type of vehicle; the amount of coverage; miles driven daily and geographic location. It’s important for drivers to compare costs with different insurance companies. The most popular auto insurance company may not necessarily be the cheapest. Drivers should also inquire about any discounts the company may offer because multiple discounts can really lower the amount of the premiums.

Type of Customer Service

It’s often said that a company is only as good as its customer service. An auto insurance company that can’t be reached when needed isn’t going to work out well regardless of how cheap the premium. Answering the following questions can be beneficial when choosing the right insurance company.

  • Do they offer 24/7 customer service?
  • How long does it take to collect on a claim?
  • Do they have an officer nearby?
  • What type of reviews are given on this particular company?

Related Resource: 10 Best Cheap Car Insurance Companies

According to U.S. News & World Report, not having the right kind and amount of car insurance can be almost as risky as not having any car insurance. By keeping in mind the important features to consider before purchasing car insurance, drivers and their family members can be protected from almost any auto-related catastrophe.