Leasing or financing a new vehicle requires additional auto insurance coverage. It is possible to need or want coverage even if you do not own a car. Be it through getting on a call with an agent or tapping on some links on your phone, getting car insurance can be either a time-consuming or a quick process.
We hope this guide will help you through the steps of buying a car insurance policy.
Obtain information about the driver and vehicle
Here are the key points you need to know about what car insurance requires:
- Every driver on the policy must provide basic information like their name, address, and date of birth.
- Information about all drivers covered by the policy, including their license numbers.
- An overview of the vehicle, including its year, make, model, identification number, and current odometer reading.
- Each driver on the policy is required to provide their driving history, including any accidents, traffic violations, and safe-driving courses they have taken.
- Your current insurer (if you have one), including your current coverage limits.
Calculate the amount of car insurance you need
The first step to buying car insurance is to determine how much coverage you need. It is possible to be woefully underinsured if you purchase too little coverage. However, it is also important not to overbuy.
Here are some common coverage types you’ll want to consider:
Liability Car Insurance
A liability car insurance policy covers property damage and injuries caused by a car accident, as well as repairs and medical expenses for those injured. A lawsuit resulting from an accident is also covered by the policy. In general, you should purchase enough liability insurance to cover your potential losses.
Uninsured Motorist Coverage
In spite of the fact that liability insurance is required, only some drivers purchase it. The liability insurance of some may not be enough to cover an expensive accident. Uninsured or underinsured drivers often crash into you. The consequences include medical bills, funeral expenses, etc., that can be covered by uninsured motorist insurance (UM) and underinsured motorist insurance (UIM).
Collision and Comprehensive Insurance
If you crash or back into a pole, collision insurance will help cover your repair bills. As an alternative to using your collision coverage, you could make a claim against the liability insurance of the person who crashed into you.
In addition to paying the value of your car if it is stolen, comprehensive insurance covers damage caused by falling objects, collisions with animals, fires, floods, hail, vandalism, and theft.
Personal Injury Protection
In the event of a car accident, personal injury protection (PIP) covers medical bills and other expenses of yours and your passengers, regardless of who caused the accident.
Assess Car Insurance Quotes
You should compare car insurance quotes from multiple companies once you have determined how much coverage you need. This is crucial because car insurance rates can vary significantly between insurers.
Here are some ways to get free quotes:
- The Internet: Find an insurer’s website or a comparison site that allows you to compare multiple policies simultaneously to find free car insurance.
- Insurance agents: A licensed insurance agent can also assist you in finding a suitable plan. A captive agent only sells policies from one company, so it’s better to speak with an independent agent who sells policies from a variety of companies.
You can repeat the buying of car insurance online regularly now that you have a step-by-step guide. Whenever you renew your policy, it is a good idea to shop for another provider to see if they offer a lower rate for the same coverage or if you qualify for any new discounts.