How to Choose the Right Auto Insurance

by Bianca Garrison - January 31, 2020
Laptop on desk with a car insurance policy on the screen

When it comes to auto insurance, choosing the right one can be a challenge because there are so many options. Not only do you have to choose an insurance provider, but you also have to select the right coverage, the right premiums, and you need to understand the policy. If you are a new driver or are looking to switch your car insurance, read on to learn how to make sure you choose the right auto insurance for you. 

Knowing What Coverage You Need

Every state has minimum car insurance requirements. The basic requirements are usually liability insurance but some states may require that you have additional coverage such as uninsured/underinsured motorist coverage.  It is important to know what policy limits your state requires so you can decide if you want to add more coverage beyond what’s mandated. In addition to liability car insurance, you can add collision, comprehensive, and personal injury protection. Knowing how to choose the best car insurance starts with deciding how much coverage you need. 

Choosing Your Deductible

A car insurance deductible is the amount you pay on a claim before your auto insurance will cover the rest. Picking your deductible is a personal decision. A higher deductible could result in a lower premium, but it increases your out-of-pocket expenses if you are ever in an accident. For example,  if you are in an accident, and your deductible is $1,000, you will need to pay $1,000 before your insurance company will cover any damage. When you pick your deductible, make sure it is an amount that you can comfortably afford. 

Understanding Auto Insurance Coverage

It is important to understand that a car insurance policy is actually a grouping of different coverages that protect you and your vehicle. The basic car insurance that you will need is liability car insurance. But liability insurance protects others in a car accident. It does not cover your injuries or vehicle damage. If you want to make sure you and your car are covered in an accident, you will need to add collision insurance. Collision insurance is an optional coverage that will cover your injuries or vehicle damage if you hit another vehicle or object. 

Comprehensive insurance covers everything that is not a collision. It covers theft, vandalism, weather, acts of nature, accidents with animals and more. 

Personal injury protection (often called PIP) covers your medical expenses, regardless of who was at fault for an accident. It is required in some states. 

Your Car Insurance Premium

A car insurance premium is an amount you pay to your insurance company every month, six months, or ever year. Your premiums are calculated based on numerous factors including age, driving history, the type of car you drive, location, and more. Some car insurance companies use your credit score and insurance history. 

Getting a Car Insurance Quote

Now that you have an understanding of what coverage is required and what is optional, you can now call for your free car insurance quote. In the past, you would have to call numerous car insurance providers to get multiple quotes and compare them. But now, Bluefire Insurance does that for you. We work with the top car insurance companies in the country and can provide you with a car insurance quote that meets your needs. When you are on the phone with the insurance agent, be sure to mention your budget so that we can provide a quote that you can afford. If you are still worried that you don’t know how to choose the right car insurance, don’t worry. Our experienced agents can help you every step of the way. 

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