What to Know Before Buying Car Insurance

June 2, 2022

The Ins and Outs of Auto Insurance From the Experts

By Jeff LaScala –  The Coverage Pro

“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. 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

Car insurance rates are computed using data provided by the National Bureau of Statistics in Washington D.C. Pricing varies between companies because each insurance company delivers statistics in different ways based on their experiences to get better data on who is more likely to have a claim. This is where companies will separate each client into categories. There are plenty of factors that impact car insurance pricing, from demographics like age and gender to driving records to the cost of the vehicle. For instance, a luxury/sport vehicle will require higher insurance than a regular car. But, despite the persistent myth, owning a red car will not raise insurance rates.

State minimums are usually more expensive than other policy options, which is another reason it’s important to get some advice from a car insurance expert. Clients will often opt for the state minimum without hearing about other policies and options, and then end up paying more for less coverage.

How to Get Better Car Insurance Pricing

From a customer’s perspective, rates for drivers with a good driving record will be lower. The more tickets you have, or accidents you’ve been in, the more expensive your insurance will become. Look for discounts like multi-car bundles or multiple coverages (i.e., home, auto, life) with the same company. Defensive driving courses can also qualify for discounts. Teachers, first responders, and military personnel should always ask about affinity discounts, which can also contribute to lower rates. 

Consider sticking with the same insurance agent or company consistently, much like your personal physician or lawyer – the more you know them, and they know you, the better off you’ll be in the long run. They will work with you personally to get the right insurance for you at the life stage you are in and for your family members. If you really want to be sure you’re getting the best car insurance pricing and the right coverage, working with an insurance expert makes good sense, so you don’t accidentally leave money on the table!

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 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 partnered with The Coverage Pro in order to offer our clients access to insurance experts who can help you make sure you’re not paying for more auto coverage than you need but, 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!

Get a Car Insurance Quote

Read More Blogs