Choosing insurance isn’t an easy task regardless of whether it is a home, car or life insurance. Before starting to hire one, you have to take into account a series of steps that will help you make the right decision so that you don’t regret it within a few months. In the case of the car, it is of vital importance.
Your vehicle is a means of transport with which you can cause more than one physical and material damage so knowing what are the coverages you need, your economic status, etc. We’ll help you to evaluate each of the options and choose them successfully. The ten steps that we offer below draw a fixed line for you to follow and get the best possible option.
Step 1: First of all
When you are looking for car insurance you want to be adequately covered in the event of an accident, but without paying a penny more. OK, and how do we get it?
The insurance represents important money to save a year in these times of crisis. To give an example, a researcher used an online comparison of car insurance calculations for your specific profile and found the not insignificant difference of $ 540 insurance per year between the most expensive and the cheapest company. What is it worth?
Step 2: What coverage do I need?
To find the right car insurance you have to start by finding out “the amount” of coverage I need. Each person and situation are different. Do I need a full risk without a franchise? There are many clients who base their decisions on the worst situations and maybe this is the client type of insurance companies Insurance companies “play” with statistics and knows in each case how many average people will have an accident, suffer a theft …
Experts recommend that if you have a large number of assets you should have enough liability coverage to protect them. For example, I have $ 25,000 of liability coverage for bodily injury, but I have $ 40,000 in assets. The attorneys could go against my estate in the case of an accident in which I was at fault and the other part of the medical bills exceeding $ 25,000.
Driving habits should also be considered. If you have a bad experience with an insurance company, if you have a hot foot with the accelerator or a difficult way to get home maybe you should consider a wider coverage. There are also positive aspects such as good accident history, the low death rate in accidents, robberies, etc. Make sure of aspects such as having a replacement car, it can be of vital importance in case of breakdown when you are on vacation or similar.
Step 3: Review your Driving Permit and your current insurance policy
Do you have a card? And an insurance policy? Have you had fines lately? Do you have points left? All this seriously influences the price of car insurance and it is not trivial your previous review, maybe you can recover some point in a few days and wait to quote the car insurance again.
Step 4: Request competitive quotes
The first Internet. There are many easy-to-use online insurance comparators that can give you a first price touchstone. Does this bore you? Think that only online can achieve savings of about $ 300.
There are some companies that don’t give you a price in real time, they call you to give you the cost of the insurance, especially if they are Insurance Brokers or similar. Each quote will require between 5 and 10 minutes, but it will be worth it.
Step 5: Record prices, write everything down
To not miss out on all the information you are collecting, make an electronic document with notes or a sheet of paper divided into categories so you will avoid working excessively. Don’t forget to add the following points:
Monthly and annual rates for the different types of coverage: as the annual price is not the same as the monthly, don’t forget to record the amounts of the insurance in the same form of payment (the annual is the most representative).
Discounts offered by insurance companies according to your profile.
Step 6: Now touch the phone
Once you have exhausted all online channels, touch the phone, contact all those who don’t have an online quote. Have a pen and paper in hand will help you again to have all the documents at hand to make easier, and faster, the work to the person who is going to quote me by phone. Don’t forget to request a document (via email) with all the information provided by the telephone operator.
Step 7: Search promotions
When you’re on the phone, I shouldn’t let my guard down with promotions. Ask your interlocutor Is there an additional discount that you can offer me? Maybe my history, my type of car, the extras that favor the low accident rate, etc.
Step 8: Select the right insurance company
You are closer to the final decision, only one detail is missing. Is the cheapest insurance company the most appropriate? Bad news, it’s time to read and investigate again because if you need your insurance company and they don’t know how to help you in the event of a disaster, you will have saved for nothing. Collect as much information as possible about the company that is starting to get your attention.
Here are some tips to guide your thinking and help make a decision:
- In the Directorate General of Insurance, they may be able to offer you information about the company, if it serves your clients well if you have many complaints …
- What the dealers of trustworthy cars think and the workshops about them.
- Do you have an insurance agent that the company recommends?
- Take a look at what the rating companies think about your chosen financial strength.
Step 9: Review of the particular conditions before signing
You have already done your research and you have decided on the insurance company. Before signing, you must carefully read the coverages, review the exclusions included in your policy before signing. Verify with special care a clause that is to maintain your right to sue, in the words of an expert … “Find out if you are waiving your right to go to court and if there is an obligation to go to arbitration if there is a disagreement [between you and the insurance company] “.
Needless to say, “It’s much better if you don’t give up this right … It’s easier for [insurers] to take advantage of you.” If you find a clause in this sense, not everything is necessarily lost. “At least, in theory, a contract is a mutual agreement, so you should be able to cross the negotiation line.”
Step 10: Cancel your old policy
After hiring the new policy there are two more things to do. The first is to cancel insurance coverage with the current insurance company. Now, you are free to enjoy the money saved.