Last Updated on December 16, 2020
This means, that not every car insurance is good for you and you need to be more careful when it comes to purchasing the right one that will cover all your needs without breaking your bank account!
It’s true that auto insurance is smart and prudent but don’t forget that it can be costly too and you don’t really have to pay an arm and a leg for it! Therefore, before comparing policies and insurers, take time to specify your personal priorities and your budget.
Also, make sure to evaluate how you actually use your car and what risks you are more likely to face! By doing this, you will be more able to decide what insurance policy makes the best sense for you!
Here are 8 questions you should always ask before shopping for your car insurance. Answering these questions will guide you to make the right choice!
Table of Contents
How Much Do You need to Drive?
These questions will help you determine which auto insurance policy that reflects how much you need and use your car. For instance, if you don’t drive a lot, you might only opt for mileage-based insurance.
Will You Be Using Your Car To Drive To Work?
For instance, if you use your car to get to work as well as to perform other daily tasks for which you get paid such as transport paying passengers through a ride-share service, drive as a courier or even deliver pizza, then, purchasing a commercial auto insurance, in this case, is a necessity.
And that’s because personal auto policy won’t be enough to provide you with enough coverage!
What is the Car You Drive?
Moreover, they can also provide you with specific details concerning the types of cars, makes, and models that are more or less likely to incur claims. If you drive a flashy sports car that has a very strong engine, then, this means that it’s more likely to be stolen.
Therefore, it requires an insurance that could cover it according to its bodywork costs. As for classic or modified cars, a special insurance might be needed. For those of you who have a ‘’safe’’car with good safety features and record, might interestingly receive discounts!
How Much Do You Love Your vehicle?
However, if you drive a beater and want to save on premiums, it would be wise in this case if you limit your auto insurance policy to liability!
Where Do You Live And Where You Park Your Vehicle?
For instance, parking a car in the street and more particularly in urban areas will make your car more likely to be subject to theft and vandalism. Therefore, a comprehensive coverage, in this case, would be just a perfect option!
It’s also good to note that your premium rates can get lower when you decide to move from a city to a suburb!
Who Else Will Be Using Your Car?
What Are Your Legal Obligations?
However, should you keep in mind that in case you had a serious car accident, you might end up being sued for a large sum of money? To be safe, you might need to opt for a higher level of liability coverage.
Is Your Car Financed Or Leased?
It’s also good to know that your gender, age, and driving record can affect your insurance options and costs while your credit score might affect your insurance rates. Therefore, it is critical that you closely look at your needs and priorities first and then decide which insurance options will suit them the most!