If you are a new driver, finding and purchasing an insurance policy can seem daunting. It does not have to be that way. The process can be easy if you know some things before you start looking for insurance.
1- Not matter what insurance company you talk to, they will want lots of information.
It may seem that you are being asked a million questions, but you need to realize that this company is basically “sizing you up” to see if you are a driver that they want to insure. Knowing what information you will be asked for prior to contacting them will help your insurance shopping experience run much more smoothly.
When you contact an insurance company, have the following information ready to share; your name, your address, your birthday, your driver’s license number and the information about your car. Some insurance companies will ask for your social security number, but it is not required.
2- You don’t have to use the same company that mom and dad use.
Sometimes it is good to stay with the same company as your parents. That company might offer discounts to you just because your family is already insured with them. It might be easier to stay with the same company because they may already have a lot of your information in their system, which will save you a lot of effort.
However, having insurance the same place as your parents can also be detrimental to your insurance. If you insure with the same company as them, then their driving records may affect the price of your car insurance. Same goes for siblings. Before you just sign up with a company because mom and dad said so, try to remember what kind of drivers you live with, you might be better off on your own.
3- Cheaper isn’t always better.
“It’s unwise to pay too much, but it’s worse to pay too little.
When you pay too much, you lose a little money, that’s all.
When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.”-John Ruskin
Why are you buying insurance? To protect yourself financially. This may not be the reason that you first thought of, but ultimately, it is the reason for purchasing any kind of insurance.
Make sure you have enough of the proper coverages to protect yourself and your net worth. It is dangerous to settle for the minimum amount of coverage when it comes to car insurance. More often than you would like to think, people are sued for money they don’t have because the insurance they bought to protect themselves was not enough when an accident occurred.
Be a smart consumer and learn what the insurance coverages are meant to do for you. Your insurance agent or broker can explain the coverages to you. Take the time to listen.
Insurance does not have to be difficult to understand or stressful to buy.