What To Ask Before Choosing A Policy

Are you a first-time car insurance buyer? Whether you're a new driver or just made your first auto investment, take a look at the questions to ask before you select a policy.

Does the Insurance Meet Your State's Minimum Requirements?

Insurance minimum requirements vary by state. This means the policy your friend has in another state may not look the same as the policy you need to buy. 

Talk to an insurance agent to learn more about what the policy minimums are in your area. These include the type of liability insurance you're required to purchase and the amount per person or accident. Some states only require drivers to buy bodily injury and property damage liability insurance, while others also include uninsured/underinsured motorists, personal injury protection, medical payments, or other types of coverage.

Does the Insurance Match Your Budget Needs?

After you learn more about how much or what types of insurance you need, it's time to take the next step and find a policy that fits into your budget. Auto insurance is mandatory. This means it's an expense you need to cover. If you don't think you can afford insurance, discuss your options with a qualified agent. 

A high-deductible policy may cost you less per month, quarter, or year. While this option increases the amount you owe after an accident, it can save you significantly on initial costs. Along with an increased deductible, your insurance agent may find other ways to keep a policy within your budget. 

Overall insurance savings vary by insurer or region. These may include anything from a multiple vehicle/insurance line discount to savings based on how many miles you drive per year. Before you agree to an insurance policy estimate, review all discounts or similar savings options.

Does the Insurance Company Meet Your Needs?

More specifically, does your insurer provide the type or modes of customer service you expect? In a perfect world, you'll only need to talk to your insurer when you open and close a policy. But it's possible you'll need to interact with an agent or customer service representative after an accident or when you want to add, subtract, or change policy options. 

If you prefer a personal touch, make sure your future insurance provider offers in-person or phone-based services. Customers who would rather use technology to buy/change insurance policies or report incidents should look for a company with an easy-to-navigate website or highly functional app.