The best way to shop for car insurance

The Best Way to Shop for Car Insurance

The Best Way to Shop for Car Insurance

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The best way to shop for car insurance is when it is all automated for you so that within a few minutes you can get the rates and terms you want. There is a bit of upfront work you need to do so that you can quickly and easily get the best possible deal on your car insurance.

The first thing you need to know about car insurance is that there are technically six different types. Knowing the differences between these types, and what they are for, will help you to make sure you are getting the coverage you need. 

Liability Insurance

When most people reference auto insurance, this is the type they are talking about. It is probably the most important type of insurance to have and to have enough of. Liability insurance covers you if you are the cause of an accident and you are personally sued for damage to property, vehicles, or bodily injury. Most states require liability insurance in order for you to drive legally. It is important to have significant coverage (as much as you can easily afford) because if you don’t have enough to cover the cost of an accident or property damage, you will be responsible to pay for the rest out of your own pocket.

Comprehensive Insurance

Comprehensive auto insurance is typically an optional coverage option. This is to cover YOUR car if there is damage or theft unrelated to an accident. For example, a storm blows a tree branch and it lands on your windshield – comprehensive coverage would cover the cost to repair the damage. However, this type of insurance has a deductible. (More on deductibles later!)

Uninsured and Underinsured Coverage

Most states also require this type of insurance coverage. Uninsured and Underinsured auto insurance covers you in case you are in an accident with a driver who is not covered by their own auto insurance. If you do not have this type of insurance, and you are in an accident with someone who is not covered by auto insurance, you will not receive compensation for bodily injury or property damage, even if the accident is not your fault.

Collision

Collision insurance is another type that is not typically required, however, it is highly recommended if you have a new or expensive vehicle. Liability insurance only covers damage to other’s property or personal injury, and comprehensive insurance does not cover you in the case of an accident that you are the cause of. So collision insurance is important because it can cover the costs of replacing or repairing your vehicle if you are the cause of an accident. If you have an older car that you could easily live without or replace, then collision insurance probably isn’t necessary for you.

Medical Payments and Personal injury

If you, or anyone else in your car, are injured in an accident that you caused, this insurance covers the medical costs incurred as a result of the accident. As mentioned before, Liability insurance only covers others, not those in the car of the insured. So this is another way to protect yourself and those you love in the case of an accident. And a way to protect against having to pay a significant amount of money if you or a loved one are injured. If you live in a state where Personal Injury (also referred to as PIP) is available, this can help pay for costs that occur due to the injury that is not medically related (like child care or lost income due to disability.) 

Your credit score can affect your insurance rate?

You need to get your credit in order today! In most cases, your credit score affects the rate of your car insurance. By improving your creditworthiness, you also put yourself in a much stronger position to shop around with multiple insurers, having them compete for the best rates for you. 

By far the best company out there for you to get a current credit baseline, ongoing monitoring of your credit score and your credit report all for free is Credit Karma. If you haven’t done so already, stop what you’re doing and open an account up with Credit Karma. I have a link for them below.

Click here to learn more from Experian on “How Much Does Credit Score Affect Auto Insurance Rates?

#1 Rated For Free Credit Reports & Credit Scores

#1 Rated For Free Credit Reports & Credit Scores

Monitoring your credit score on an ongoing basis is part of your ongoing journey to financial wellness. The best company out there for this is Credit Karma. You can access your credit score and credit report anytime you need it. I continue to use Credit Karma to this very day. The best part of all is that it’s free. If you haven’t signed up already go do it today.

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YouTube video for you to get your free credit report

Is it worth shopping around for car insurance?

Absolutely. Yes. Please shop around! 

Comparing auto insurance rates and getting quotes from as many possible insurance groups is the best way to be sure that you are getting the best rates.

Be sure to compare similar insurances – options that offer liability only are going to cost significantly less than options that include comprehensive or collision insurance as well. You want to be sure that you are comparing apples to apples to be sure you get the coverage you need at the best rate.

What are three factors that lower insurance premiums?

Your Car

New cars typically have a “new car” discount, there are also discounts for cars with specific features: anti-theft, stolen vehicle options, GPS based systems, and VIN etching can all result in discounts for you. Cars that have safety features – anti-lock brakes, airbags, etc. can also result in significant discounts. Cars that are less expensive to replace are also typically less expensive to insure, so older or cars that are not from high-end manufacturers are typically cheaper to insure.

Your Driving

Safe drivers, those without moving violations or other crashes on their records are typically able to get lower insurance rates. There are also discounts offered by some groups if you take and pass a defensive driving course. Those who do not have long commutes or use their car as much can also expect lower rates.

You

There are all kinds of discounts available. Those who have multiple cars generally get a discounted rate for insuring all of your vehicles on one policy, bundling home and auto insurance can also get you a discounted rate. If you choose to pay electronically and have a paperless account there are discounts available as well. One of the most significant discounts is to pay for the year of insurance upfront, this can save you 10% or more in some cases. 

Many companies also offer discounts for good students or people who work in specific fields. So be sure to check into these options and see if you qualify for these as well. Unfortunately, one of the biggest factors in determining car insurance rates is your age and driving experience. There is nothing you can do to change this, but if you are between the ages of 16 and 25, you can expect to pay much more for your auto insurance than those older than you.

Do insurance premiums go up or down if your deductible goes down?

Typically, if you would like a smaller deductible, your monthly payments increase. This means that you are guaranteed to pay more per month for the chance of paying less if there is an accident. If you are willing to take the chance and have a higher deductible, you will have lower monthly payments. Weighing the likelihood of accidents and your ability to cover the deductible is an essential part of deciding which car insurance and which policies are right for you.

What is the best way to shop for auto insurance?

Calling independent insurance agents (those unaffiliated with one specific company) is a great way to find out how much coverage is recommended for your situation and to get the best quotes from a variety of companies. Having an agent also means that you have direct access to someone if you ever need to make a claim. They will contact the insurance company and coordinate everything for you if there is ever an accident.

Another great way to shop for car insurance is by comparing prices online. Some companies even offer discounts for those who sought an online quote and purchased insurance online.  

Gabi makes is quick and easy to shop for car insurance.

Gabi is like the Expedia of insurance. It allows you to compare multiple companies and policies side by side so you can easily see which auto insurance is right for you and your budget. Typically gathering quotes on Gabi takes less than 10 minutes and you can be approved in no time.

It’s free! And it can compare many types of insurance, not just auto. There are options to compare: home, auto, umbrella, renters, landlord, and even motorcycle and RV insurances. Bundling these can result in significant savings.

In addition to having no fees, you can also use Gabi to change insurance policies right on the Gabi App.

The best way to ensure that you are getting the right insurance, at the right price, is to gather and compare as many quotes and companies as possible. The easiest way to do this is Gabi

#1 Rated For Home, Renters, Auto Insurance & More

#1 Rated For Home, Renters, Auto Insurance & More

Insurance companies do not reward you for your loyalty, so always price around to see if there are better deals to be had out in the open market. There is no better company out there for auto, home, renters, landlord and umbrella policy insurance comparison shopping than Gabi. Within a couple of minutes you’ll be able find the policy that is the best fit. Try Gabi and save!

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Frank Makrides

Frank Makrides

Is a former financial technology industry executive, licensed realtor, real estate investor, an award-winning speaker, has been published, holds multiple patents and is passionate about all things personal finance and entrepreneurship. He is also a proud husband and father of 2 amazing children.

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