5 Questions to Ask Before Buying Auto Insurance

The Alphas (the team has actually grown considerably since this picture).
The Alphas (the team has actually grown considerably since this picture).

Purchasing auto insurance is a decision that should not be made quickly. There are numerous insurance companies and each one of those companies has a number of different policies and policy options to offer to you. Before you make your decision, consider these important details when buying auto insurance. It could define how affordable and comprehensive your plan is.

#1: What type of risks does the policy cover?

In most cases, you will want to protect against liability risks as well as property risks. You need to protect against other people causing accidents and damaging your car and from the damage you cause to your vehicle or the property of other people. Your policy should offer as much protection as possible in these areas.

#2: What exclusions apply?

Most auto insurance policies have exclusions. These are very specific features of the plan that are not covered. For example, your auto insurance plan may exclude claims against flooding damage to the interior of the car. Look at the policy to learn what limitations apply.

#3: What is the claim limit?

One key way to reduce the cost of an auto insurance policy is to reduce the claim limit. This is the amount the policy will protect against at the highest level of loss. If a claim limit is in place, and it is too low, you could suffer financial losses as a result. Ensure your claim limit is high enough to minimize all risks.

#4: What discounts are available?

Security systems on the vehicle, anti-lock brakes, and good driver discounts can save you money. Before you agree to the terms of an auto insurance policy, ask for all discounts and savings opportunities the company can offer to you. Do not assume they will provide every discount.

#5: What is the financial strength of the insurer?

Have you researched the insurance company? They should have a long history of providing high-quality coverage. And, they should be able to provide you with the financial strength to know that you are protected even if a significant event occurs.

The more information you obtain before you buy auto insurance, the better the decision you make is going to be. Invest the time in talking to your agent to discuss all of your options. And, be sure to work with someone you trust and know is going to take every step possible to protect your investment.