Car insurance rates might appear easy. You may think that you can just compare the premiums and get the lowest one and you’ll be set. In actuality there is a lot more to it than that because the coverage can vary greatly from company to company and even from plan to plan within the same company. The following are tips on how to compare car insurance rates.
Decide the coverage that you want
Before you can compare the rates of the different plans or companies you should have an idea of the type of coverage you want. Certain plans are much more comprehensive and may pay more than others.
Another very big thing to look at is the deductible. This is the amount of money that you will have to pay before your insurance starts to pay for a claim. For instance, let’s say you get into a car accident and incur $2000 of damage. If your deductible is $500, then you will pay that and the insurance company will pay the $1500 after that (subject to plan limits). If your deductible is only $100, then they will pay $1900.
In general you pay more for the lower deductibles with everything else being equal. You should decide which you want. Some would rather pay the money upfront and know that they will not have to pay a lot in an accident. Others would rather not pay as much and take the chance that they will have to pay more later.
Another thing to look at is plan caps. Some plans may have a limit and stop paying. Also, some plans cover things that other don’t. They may cover uninsured motorists while others won’t (although look at state requirements because some require you to have this). Also some might cover things like rental cars if you get into an accident.
Look at the premium differences
Get quotes from the different companies and plans. Do not just trust that another company will give you a quote from their competitors because there may be things that they are doing to make their company appear to be the better deal. If you are not sure of the coverage you want then look at a variety of quotes. Also consider discounts for which you might be eligible such as a safe driver discount. If you are going to be putting children such as teenagers on the plan then look at how this will affect it.
Car insurance can be expensive thus you will want to do your research to get the plan and premium that is right for you. Look to the above tips to help you compare these rates.