How to Choose a Car Insurance Plan

The right auto insurance plan is key in protecting you and your family in the event of an accident or injury. Whether you already have a plan and are looking to change it, or you want to buy your first plan for a new car, we’ll help you select the right policy. Use these tips to buy a car insurance plan that meets your needs—and fits into your budget.

  1. Understand the different types of coverage: First, familiarize yourself with the different types of plans available in the auto insurance market. Car insurance companies typically offer collision, comprehensive, medical, or personal injury protection, liability, and uninsured/underinsured motorist protection plans. Each of these plans offers varied coverage, so make sure to assess your needs as well as your premium payment capacity before choosing a plan for yourself. 
  1. Consider getting optional coverage: The above-mentioned plans are core products that most people consider when they purchase auto insurance. However, if you want enhanced protection, it is a good idea to opt for add-ons for extended coverage, guaranteed auto protection (GAP), mechanical breakdown, and an OEM endorsement. 
  1. Keep information handy: When you start shopping for a car insurance plan, it’s important to have certain information nearby, such as the car’s VIN number, your driver’s license number, estimates of how much you drive annually, a copy of your current auto insurance plan (if applicable), and estimates on your annual insurance premiums. 
  1. Choose the right coverage and deductibles: When buying auto insurance, try to find the right balance between coverage and the premium payable. If you are deciding what coverage may be best for you, consider your financial situation. If you have a lot of assets, you may want to get a plan with a high liability limit. When thinking of the deductible, consider your liquidity. For instance, ask yourself if you can afford a deductible of $1,000. If you can, then opt for a higher deductible to save money. 
  1. Ask about discounts: Lastly, before you purchase an auto insurance plan, make sure to inquire about any possible discounts (like the safe driver discount, good student discount, etc.) that you may be qualified to get.