If yes, then here are some of the lists of questions you’re expected to ask yourself before you buy any of the car insurance policies.
A. HOW MUCH LOVE DO YOU HAVE FOR YOUR CAR?
If you have any special bond or connection with your car, you will definitely want it fixed to perfection or replaced with a similar model if anything happens to it. In this case, you should definitely shop for the fullest range of insurance including comprehensive, collision and even glass coverage.
If you see cars as objects that could be changed at any given time and you want to save on premiums then you may go for liability insurance.
Read: What Is Gap Insurance?
B. HOW MUCH DO YOU DRIVE?
Do you need to make use of your car everyday? Or is a car a convenience you could easily forgo if the need arises? How many miles do you drive in a month? You would want to make sure your policy reflects this little information. If you don’t drive a lot, you may want to go for a mileage-based insurance.
C. WILL YOU BE USING YOUR CAR FOR WORK-RELATED PURPOSES?
If you are not just using your car to commute to work but to also perform work-related tasks then commercial auto insurance is very necessary. A personal auto policy will not provide coverage if you undertake delivering pizzas, drive as a courier or use your car for commercial purposes.
D. WHAT BRAND OF CAR DO YOU DRIVE?
Insurers avail themselves with lots data and they know exactly which car is more or less likely to incur claims. Your insurance will be priced according to the car you drive, whether its a Maserati or a mid-sized sedan. In the same vein, you may receive discounts if your car has a good safety record and the latest safety features.
E. WHERE DO YOU LIVE AND WHERE DO YOU PARK YOUR CAR?
The insurance rates for someone who lives in an urban area and parks his car on the street are higher compared to someone who lives in a rural area because he faces a greater risk of theft or vandalism. In this case, you may want to go for comprehensive coverage.
F. WHO ELSE WILL BE DRIVING YOUR CAR?
In general, your car insurance will cover other people who drive your car from time to time. These ”other people” should be listed on your insurance policy if they live with you.
G. WHAT ARE YOUR LEGAL OBLIGATIONS?
Almost every state requires that you carry a minimum liability coverage, so you need to ensure that your policy complies with state mandates. The levels of required coverage in general is pretty low. However, to be on the safe side, you’ll probably want additional liability coverage.
H. IS YOUR CAR FINANCED OR ON LEASE?
If you are still owing money for your car or you have to return it when the lease expires in good condition, you’ll likely be required to insure it for its full value and for any gap between what you owe and the market value for the car.
Collision and Comprehensive coverage will cover the car’s damage up to the market value while supplemental gap insurance will take care of covering the rest.
Note that your insurance options and costs will be impacted upon by your age, gender and driving record. Also, your credit score will greatly impact upon your insurance rates.