Performing and auto insurance plan review is an important step in the overall process of purchasing auto insurance coverage. It saves not only your time but also your resources. So, it is advised that you purchase auto insurance coverage the way you purchase your household and/or costly items and use similar planning before and during review of auto insurance plans.
An effective review requires you to understand the type of auto insurance coverage you want, the risks that you want to cover, the amount you are willing to pay as premium, and whether you are also open to paying deductibles.
In order to provide a quote, insurance providers need some basic information about you based on which they calculate and prepare a quote suitable for you. You need to provide them with the following information to get started:
Name, age, gender & marital status
Driving record (accidents, moving violations, etc)
The following information on all cars:
Full vehicle identification number
Type of car
Year of vehicle
Cost of vehicle
Vehicle Use & annual mileage
After providing the above given basic information, you will receive quotes from different companies. At this point, you have to actually carry out auto insurance plan review before choosing one particular quote. You should review the insurance providers’ premium rates, risk coverage, record of claim processing and settlements, financial strength etc. Also, coverages can vary widely from one policy to another. Similarly, insurance providers are free to decide the price of coverage that they offer. Therefore, while reviewing, you must check the price and the coverage that they are offering. Pay special attention to any “exclusions” in the policy. Overall, you must consider the following factors while carrying out each insurer’s auto insurance plan review:
Important considerations for an Auto Insurance Plan Review
Compare the price and risk coverage offered by one insurance provider with the price and risk coverage offered by others to find out the competitiveness of any quote. However, always bear I mind that cheapest coverage is not always necessarily the best coverage. This is because; paying a few extra dollars now can save you from most of the potential unpredicted financial loss and harassment. Remember, better coverage is always preferred than lower price of coverage.
Check the length of the auto insurance plan. This can vary from one month to one year depending upon the insurance company.
Many companies offer installment plans which offer you the convenience of paying the premium over a certain period of time. However, a service charge is taken for this. Find out the amount of service charge that you may have to pay.
Check if you are required to pay any upfront fees as some companies charge policy issuance fee.
If you car is old, check if you should drop the idea of collision/comprehensive coverage. Otherwise, it may prove too costly for you to cover potential risks arising out of an old car.
Discuss and find out the territorial provisions of your policy with respect to Canada and Mexico, if need be.
Read in detail the policy provisions for licensed driver who may use your vehicle occasionally. This is because coverage may extend differently to you as compared with an occasional driver.
Compare discounts offered such as multi-car, airbags, anti-theft device, etc. and/or surcharges the company applies.
Check if you can get higher deductibles. You can reduce your coverage cost by requesting higher deductibles for comprehensive and collision coverages.
Usually equipment that are not permanently fitted in the vehicle by the manufacturer such as cellular telephones, compact discs, tape players, and recorders are not covered, unless you particularly declare and request the insurance provider to add in the policy.
Check out the financial viability of the insurance provider. Infact, financial strength is one of the most important factors that must be considered while reviewing any auto insurance plan. Remember you claim depends on the financial strength of the insurance provider.
Try to find out the record of claim processing and customer service of insurance provider. Even if the company is stable financially, if the process is too slow and cumbersome it can become tough to get a claim settled.
Remember, the key to an effective review is to know what auto insurance coverage you need before you start, and then to find out how much those coverage will cost from a number of companies. Comparing several auto insurance plans is a time consuming process but saves you money not only now when you are purchasing suitable coverage but also helps in effective settlement of your claims in future.
Nobody wants to pay more for auto insurance than is necessary. However, the only way that you have to make sure that you are not being overcharged is by comparing and reviewing quotes from several auto insurance providers and finding out the most suitable quote not only in terms of price but also in terms of risk coverage, claim processing, and customer services.
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Finding an auto insurance company is not difficult, but finding the right auto insurance company can be challengling. Policy provisions vary from company to company, as do premium rates. When you are considering which auto insurance company to get coverage from, it pays to do some research to make sure that the company is a reputable one. You also want to ensure that your company has the assets to pay out a large claim, if that becomes necessary…
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