If you own and drive a vehicle, comprehensive auto insurance is something you may not want, but need in order to protect your assets. Prices for car insurance continue to rise and looking for the best and lowest rate is something on the minds of many people.
when looking in your local business directory and by searching the Internet, you will be overwhelmed by all the companies trying to get your business. There are 3 types of insurance sales organizations, online or in a local business. These are independent agents, captive agents or direct company sales. Independent agents can offer insurance to many insurance companies. Captive agents only sell one insurance company’s products. Direct Company sales are sales offices owned by the insurance company and their agents are employees of that company.
Before ever visiting an insurance sales office or clicking an Internet site you need to determine your insurance needs. If you have an existing car loan or are leasing your car, read the agreement and note the requirements for insurance level of coverage. These agreements list maximum deductible and minimum coverage amounts. Lease agreements usually have higher coverages required. Also determine what items you feel you want included in your insurance coverage. For instance, do you want or need towing coverage and or rental car reimbursement in case your car is in a repair shop because of an accident.
If your car has no financial liens and is totally paid for, the value of the car might be less than the cost of comprehensive coverage. If this is the case, you might opt for just liability and medical coverage.
If you already have insurance coverage, your agent already knows your history and will advise you of any discounts you may have available. If you have a clean driving record, some companies give a discount for this record and will offer a discount for renewal. Your agent will also notify of any increases in premium fees.
Visit local agents and visit online sites and get quotes of similar coverages. Compare apples to apples and oranges to oranges. Some companies batch coverages together and can confuse the buyer. Some companies ask what coverages your current policy contains and they will use that to offer a lower price to get your business.
Once you have multiple quotes, review the differences. Sometimes one company will have lower fees for one part of the coverage and higher fees on others. A local independent insurance agent will usually be willing to help explain the differences and which options are best suited for your needs.
Something few people know are that comprehensive rates vary depending on where you live. Sometimes if you live a few blocks away and have a different zip code, you might spend hundreds of dollars less than you are paying at your current location.
If you have high insurance costs, and you are planning on moving, consult your insurance agent and have him run a quote on your new planned zip codes. You may be surprised at the savings one location will have over the other.