If you just purchased a new car and you need coverage fast or even if you are thinking about switching auto insurance providers, there are several questions you should ask that could help you save money without skimping on coverage. One of the most common questions savvy auto insurance shoppers ask is “do I need all of these coverages and what exactly do they cover?” According to Autoinsurancetips.com, many insurance policies offer medical coverage or "med-pay." This will help cover medical expenses in the unfortunate event of an auto accident. Fortunately, if you already have a traditional health insurance policy, you may already be covered, so check your policy carefully. Also, some auto insurance policies offer roadside assistance coverage. This will add to your monthly rate. If you have a credit card, you may already have roadside assistance. Check with your credit card company. If you belong to a motor club such as AAA, Shell or BP, you do not have to purchase additional roadside assistance coverage.
Another common question savvy shoppers ask is “what discounts do I qualify for?” If you have safety features (additional or standard), you may qualify for lower rates. If you have completed a safe driver course, you are entitled to a discount. If you belong to an auto club, you may qualify for lower rates and if you willing to submit an official statement of usage, your auto insurance provider may offer lower rates. If you are an A or B student, you may qualify for a good student discount and seniors with good driving records may also qualify for discounts. If you carry home, life, and health insurance, most insurance companies will offer a multi-policy discount if you carry your policies with them.
The next question most shoppers ask is “why do you need my social security number?” Auto insurance companies will ask for your social security number to obtain a copy of your credit report. In many states, it is legal for auto insurance companies to obtain a copy of your credit report in order to assess risk. Contact your state insurance department to find out if your state allows this practice. If your state does allow it, then a low credit score could affect your rate or it could prevent you from obtaining auto insurance altogether. A "good" credit score varies among companies. A 750 score may qualify you for the best (lowest) rate at one company, but the same 750 may not be high enough to qualify you for the best (lowest) rate for another company.
One of the most confusing aspects of shopping for auto insurance has to do with deductibles. So smart shoppers always ask, “What are the safest and most economical deductible options?” Choosing a low deductible doesn’t always mean you will save money. According to AutoInsurancetips.com, choosing a deductible that doesn’t benefit your risk level could end up costing big. If you have a lower deductible but little to no claims, you will pay a higher premium for your low deductible level than you would for a higher level.
And finally, if you want to get the lowest possible rates, you should always ask, “how do your rates compare to competitors rates?” This will help you determine which auto insurance providers offer the lowest rates (for the same coverage) and the auto insurance company might be willing to meet or beat the competitors rates.
For more information about auto insurance rates and laws, visit your official state insurance department website or AutoInsurancetips.com.
