Choosing Insurance Doesn't Have To Be Stressful

4 Auto Insurance Tips

If you're buying auto insurance for the first time, or looking to switch companies, the process may seem overwhelming. There are a ton of car insurance companies, with different coverage, premiums, and deductibles. How do you navigate through this process to get the best insurance for you? Here are four car insurance tips:

1. Check for discounts

Many car insurance companies offer discounts. Before purchasing, check for all discounts that apply to you. With the right discounts, the most expensive insurance plan may turn out to be the cheapest. Here are some discounts auto insurance companies offer:

  • Driver's education- Complete a defensive driving course to receive a discount
  • Good student- Available to high school and college students who obtain a certain GPA. GPA required varies by company
  • Multi-car- The more cars you insure, the higher the discount
  • Multi-policy- By combining types of policies, you can save money. Combine your home and auto to get a discount

2. Think about the deductible

Your deductible can significantly impact your premiums. The higher the deductible, the lower the premium. However, it's not always best to have a very high deductible. If your deductible is $1000, for example, and you get into an accident, this is the amount you pay out of pocket before your insurance company will pay for damages. Because of this, you need to consider the likelihood you will have a claim, and whether you can afford the deductible. If you have a good driving record, you can save a lot of money by having a high deductible.

3.Get uninsured motorist coverage

Uninsured motorist coverage can save you from major headaches and financial losses in the future. Uninsured motorist covers you in the event you get into an accident with another driver who has no auto insurance. Your car insurance will pay for your repairs and medical bills. You only need to pay the deductible. Without this coverage, you may have to sue the other driver.

4. Be careful when switching companies

If you're switching to a new auto insurance company, be very careful. Don't cancel your old plan until you have proof of insurance from the new company. Just going a few days without insurance is a big risk. If you get pulled over or get into an accident, you may face having your license taken or going to court. You may end up paying two monthly premiums at once by waiting to cancel, but the cost is worth the peace of mind.

These are four tips you need to consider when shopping for car insurance. Contact a local auto insurance agent for information about discounts and quotes.