7 Crucial Questions to Ask When Shopping for Car Insurance
Most of us don't know a whole lot about car insurance procedures and practices. So when you've ready to buy a brand new Chevy or Cadillac or a Joe Bowman used car, you'll want to brush up on the finer points of a policy.
Whatever car insurance policy you choose, remember, the idea isn't to buy the cheapest or best policy. Instead, you want one that offers the best value for your money.
With that in mind, we've put together 7 crucial questions to include when car insurance shopping.
"Will my policy cover other drivers who drive my vehicle?"
Obviously, your policy will cover you while you drive. But what about when your best friend borrows it to run an errand? Or you sister borrows it to run to the grocery store? What happens if they have an accident? What happens if you have an accident driving someone else's vehicle?
How these situations are handled depend upon your insurance carrier and the laws of your state. Don't assume you will be covered just because you have car insurance.
"What additional coverage do I need besides the state required minimums?"
Keeping your premium costs to an absolute minimum means getting only the amount of coverage required by your state. However, there are add-on's that are well worth the investment.
For example, un-/under-insured motorist insurance, or UM. This coverage will cover the cost of car repairs if you're hit by a driver who is either under insured or in uninsured.
Personal injury protection is another inexpensive add-on that pays for your medical expenses up to a certain limit as well as lost income if you are hit by another driver.
"If I increase the deductible, how much will my premium be affected?"
Car insurance agencies offer consumers lower insurance premiums by increasing the deductible. But is that a good strategy for you?
You may save $200 per year by increasing the deductible from $500 to $1,000. However, you will also be increasing your own personal risk should an accident occur.
That means you will be responsible for paying $1,000 on a claim instead of $500. If you're good at saving money and you usually keep $1,000 in savings for emergencies, then this would probably be a good strategy. If not, you may want to consider the lower deductible.
"Will my policy include gap coverage?"
This type of coverage usually is required when you lease a car. However, if you have a loan on your vehicle, you may want to have it. Car insurance policies usually pay the book value of your vehicle.
If the loan on your vehicle is higher than the book value, you could end up paying the difference between the two if your car is totaled. Gap coverage pays that difference.
"How will my car be repaired following a car accident?"
This question relates to the types of parts used to repair your vehicle. You want to find out if the repairs will be completed using brand new parts. If so, up to what age of the vehicle? Or, will repairs be made using secondhand parts?
Your coverage may be less expensive using secondhand parts, but you have to consider this. Do you mind having 10-year-old car parts in your three-year-old vehicle?
"Does my policy include towing and roadside assistance? Are those service available 24/7?"
Towing is generally available for a mechanical breakdown or an accident. Because both happen without warning, insurance is good to have.
Roadside assistance is valuable because it provides assistance should you have a flat tire or need your battery jumped. This type of coverage can save you considerable money instead of calling a local mechanic.
Having all these services available 24/7 to you is also very important. You won't pay as much out-of-pocket costs in the event of an emergency.
"Will my job affect my coverage?"
Certain types of work are excluded from your policy. For example, using your car in sales work or any kind of delivery job. If you do have an accident, you will not be covered.
Before any person buying a vehicle from Joe Bowman Auto Plaza leaves our office, we call their insurance agent to make sure coverage is in place. We never want anyone to leave without having coverage in place.
Learn more about us at our website: https://www.joebowmanautoplaza.com.
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