Revamping Your Auto Insurance: A Concise Guide from Auto House Pros

December 18, 2023

Revamping Your Auto Insurance: A Concise Guide from Auto House Pros

“What car insurance do I need?” is one of the most common questions we hear from customers buying a car. Of course, with so many options available, it can be overwhelming. So it’s good to have some expert guidance on revamping your auto insurance. What to know before buying car insurance includes understanding car insurance pricing, different types of coverages, and how policy pricing is determined.

There are three main factors to consider in a car insurance policy:
  1. Bodily Injury/Property Damage: Liability coverage is required by law in case of an accident—and is designed to protect the driver ‘at fault’ from what could be substantial out-of-pocket payouts. 
  2. Deductibles: Choose the right deductible for your car. Comprehensive and collision cover the repairs to your vehicle in the event of a claim. Property damage covers the other person’s vehicle. 
  3. Uninsured and Under-Insured Coverage: These two car insurance coverages, along with medical payment, can pay for any injuries to you and your passengers in case of an accident.

The first question to ask yourself: what car insurance do I need? To begin, all drivers must have Liability coverage by law, and recommended car insurance coverage levels will vary by state. For instance, the state of Arizona recently updated its minimum liability requirements. Today, Arizona’s minimum liability limits are divided into 25/50/25: $25,000 coverage for one person in the other vehicle who is injured, and $50,000 is the limit if there is more than one person in that car. The last 25 covers $25,000 for property damage that has occurred as a result of the accident. Since medical treatment can be very expensive, the recommended car insurance coverage you should consider is a policy with a 100/300/50. This provides four times the coverage but is approximately 25% more expensive than minimum liability car insurance pricing!

How Car Insurance Pricing is Set

Revamping your auto insurance rates are determined through a complex process, relying on data provided by various sources, including statistics from the National Bureau of Statistics in Washington D.C. Insurance companies interpret this data differently based on their experiences, categorizing clients to assess their likelihood of filing claims. Numerous factors influence insurance pricing, encompassing demographics, driving records, and vehicle costs. Contrary to popular belief, the color of your car, such as red, does not impact insurance rates. Seeking guidance from a car insurance expert is crucial. Especially, considering that state minimums often result in higher costs and may not provide adequate coverage. Clients benefit from exploring alternative policies and options to ensure they get the best coverage for their needs.

How to Get Better Car Insurance Pricing

From a customer’s perspective, maintaining a good driving record remains a key factor in securing lower insurance rates. Accruing tickets or getting involved in accidents can substantially raise insurance expenses. Seek potential discounts such as multi-car bundles or combining coverages (e.g., home, auto, life) with the same insurer. Defensive driving courses may qualify for discounts, and individuals in professions like teaching, first responders, and the military should inquire about affinity discounts for potential rate reductions.

Relationship building with the same insurance agent or company, similar to relationships with a personal physician or lawyer, can be advantageous in the long run. Building a rapport allows for personalized assistance in selecting the right insurance coverage. They can help pick based on individual life stages and family needs. For those desiring optimal car insurance pricing and coverage, collaborating with an insurance expert. They will make sure the choice is a sensible to ensure comprehensive protection and avoid missing potential savings.

What is the Right Insurance for Me?

Insurance policies are totally customizable, so the right insurance is the one that meets your needs and your budget. While you can go online and get a policy on your own. It’s always best to get some insight from an expert to know exactly which insurance will cover. They will double check all your needs and get the best price possible. 

Optional Car Insurance Coverages to Consider

Opting for a zero deductible for glass is always a good idea for newer model cars, as many of the vehicle’s safety technologies are embedded into the glass. Glass coverage will slightly increase your monthly premium, but this insurance is always quoted by Auto House’s sister company The Coverage Pro because it’s very good to have. You might want towing and roadside assistance or rental car coverage for when your car is in for repairs. Remember, it’s all customizable!

Finally, buying a new car is a big deal, so you’ll want to protect your investment. Auto House has teamed up with The Coverage Pro, providing our clients access to insurance experts. They assist you in ensuring you’re not overpaying for unnecessary auto coverage and, more importantly, that you have the right coverage in case of an accident. Working with an insurance expert will NOT add any extra costs to your premium. Just like buying your car from Auto House, won’t add extra dealership costs to the price of your car. Insurance companies pay insurance agents for getting them a new policy, not the client. 

Remember, when you buy a car from Auto House, you get a great vehicle at a great price! But you also get access to expert advice from The Coverage Pro about which types of car insurance coverage you need, the ones you don’t, and what’s nice to have when you need it – so we have you covered!

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