Escape Car Insurance Pitfalls

If you own a car, chances are you’ve been through the ringer when it comes to purchasing auto insurance. And if you’ve done your homework, you’re well aware that not all car insurance is created equal. Unfortunately, most people aren’t privy to this information and are disillusioned by the belief that car insurance is just car insurance, all across the board. If you’re one of those people, today is the day for enlightenment.

First and foremost, think about your own current car insurance. Are you truly, thoroughly covered? If a baseball breaks your windshield, will your insurance pay to fix it? What if your neighbor’s tree falls on your SUV in the midst of a storm? Will your car insurance company pay for that? What if, Heaven forbid, a heavy construction crew drops a beam on your car while you’re shopping at that mall? Are you covered? All these things may sound a bit crazy, but when it comes to car insurance, one should always expect the unexpected. Why? Because accidents happen and an accident doesn’t have to mean one car crashing into another (as we so commonly believe).

It’s common knowledge to inquire of your potential insurance company what kind of coverage will be extended in the event of a vehicle-to-vehicle accident. We also typically ask questions about single car accidents (like backing into a pole or hitting a mailbox), but we very rarely think about making inquiries about freak occurrences or goofy circumstances. As a result, the number one piece of advice we can give, as pertaining to shopping for car insurance, is, “ask as many questions as you can, about everything from a common fender bender to an elephant sitting on your hood”.

Another piece of sound car insurance advice is to consider shopping online. Shopping for online car insurance typically means that questions are answered in black and white (in writing) and that you will be able to keep record of communications with your potential insurance company quite easily. Most insurance companies that offer e-commerce purchasing options will be able to provide customers with printable coverage descriptions and prices. Unfortunately, when it comes to traditional insurance companies, we’re often swayed to “take the representative’s word for it”.

So, in closing, GET IT IN WRITING and ask lots of questions. And by all means, request that your car insurance representative put all the information in terms you can understand. If your rep has the tendency to use insurance ‘jargon’ be sure and request that he or she translate into layman’s terms. This point of advice sounds simplistic, but it can really make a big difference when the time comes to filing a claim down the road.

Can You Really Save Money on Car Insurance?

Car insurance is a necessary evil. And while we all hate paying for it, we all enjoy having it, especially when we get into an accident. If you're ready to buy auto insurance you've likely already found that it's not a very enjoyable process. However, there are some tips that you can follow to ensure that your new car insurance policy is not only cost effective, but will cover all of your vehicle insurance needs.

You could spend hours flipping to the phonebook and calling local agents, talking to your friends about their insurance companies, even asking your parents for advice on shopping for car insurance. Or, you could save yourself a lot of time and trouble by shopping for car insurance online. And believe it or not, doing so can actually help save you some money in premium costs.

Most companies claim to be inexpensive, but inexpensive occasionally translates to inferior. More important than the cost of your insurance is the effectiveness of your insurance. If your car insurance company doesn't thoroughly cover your needs in the event of an accident, then every penny you've paid in premiums has been in the vain. For this reason, it's a wise choice to perform some auto insurance quote comparison as you search for the policy that best suits your needs. Unfortunately, this can be a painstaking process -- but not if you turn to online resources for help!

Instead of requesting premiums one by one, individually, over the phone, why not request premiums from a variety the insurance companies at one time via some online auto insurance quote comparison? Doing so will allow you to compare side-by-side the benefits versus cost ratio for a variety of insurance coverages. Besides saving time, this approach can also save you some confusion.

When you're shopping, remember that a wide variety of circumstances will alter your insurance needs. If you're driving a new car, chances are you'll be under contract with a finance company. If this is the case, you'll likely be required to have collision insurance (or a comparable full-service package). However, if you're driving a vehicle that you lovingly described as a “beater”, chances are you won't need a full-service package. You should also keep in mind that any moving violation, traffic ticket, or car accident will affect your insurance premiums. Not only that, today it is perfectly legal and very common for insurance companies to check your credit when you apply. If you have poor credit, you'll have high insurance premiums.

So, when you're shopping for insurance, do your homework -- and always remember to pay those bills on time.