The old adage “you get what you pay for” still holds true, especially when you are purchasing car insurance.
You want an affordable policy that will provide the coverage you need. That’s understandable. Why pay more for the same thing you can get elsewhere for less? The problem, however, comes into play if you don’t carefully compare what you’re actually buying. You might think the quote you just received that will supposedly save you money is a great deal. It might be. But before rushing into a big decision such as changing insurance carriers, make sure you’re comparing apples to apples, so to speak.
Here are some areas you should specifically compare with your current coverage to make sure you’re not sacrificing coverage you’ll need one day:
- Amount of your deductible. This is the out-of-pocket amount of the loss you will be required to contribute in the event of a claim. A higher deductible usually equals a lower premium. But, before deciding to raise your deductible, consider the likelihood that you will be able to afford that amount if you experience a loss.
- Liability limits. The medical coverage limit you choose plays a crucial role in protecting your assets after a loss. Medical care costs seem to increase every year, potentially letting you open for significant out-of-pocket costs if your limits are too low.
- Claim support. No one wants to experience a loss, but imagine how much worse it would be to have to go through it alone. Some companies that offer cheaper insurance prices might do so by cutting customer service and claim staff. When choosing an insurance company, make sure your claim will be handled by an experienced claim professional who will walk you through the process.
- Lastly, does the policy you purchase come with access to a local independent agent? The value of your agent’s experience can be priceless. One of your agent’s goals is to protect your assets. They do this by recommending coverage you need to make sure you are adequately insured in the event of a loss. Be an informed consumer and don’t buy based on price alone. Independent agents can offer you affordable insurance options and provide the added value of experience and expertise in the industry.