How to Choose the Best Car Insurance for You

With so many car insurance providers out there, it can be challenging to sift through all the companies and policies to find the right one for you. With each provider claiming to provide the best value for money, the task of choosing a policy can feel even more difficult.

At first glance, the policies you’re considering may all look similar. However, they will have small but significant differences that you’ll also need to consider. An important thing to keep in mind is finding a policy that meets your needs and fits your budget.

Below, we’ll take you through the steps to pick the best auto insurance policy for you.  

Step One: Determine how much coverage you need

While the cheapest car insurance in Florida may be budget-friendly, it might not suit your needs. If you do not have enough cash saved away to replace or repair your car in the event of an accident, you need to make sure you are protected by your car insurance.

Check the policy to determine if it covers collision coverage to ensure your car gets repaired after an accident. An inexpensive policy might not cover damage to your vehicle by other causes – such as theft, vandalism, or natural disasters. 

Although the vast majority of insurance policies cover liability, this is the minimum amount of coverage prescribed by law. While a policy that only covers the minimum required by Florida law will be a lot less expensive, you are at risk of losing money in the long run if you are involved in an accident.

Step Two: Research the insurance provider

While finding an insurance policy with the lowest rates might be your number one priority, the cash savings won’t be any good if the insurance provider won’t be around to pay out for claims in the future.

To protect yourself from any risks, you should vet an insurance provider before signing a contract. The best way to make sure an insurance provider is financially sound is to check independent rating companies such as Standard & Poor’s, A.M. Best, Moody’s, and Fitch.

Step Three: Compare several quotes

When you shop for insurance, it’s essential to get at least three quotes from three different insurance providers. You can comparison shop insurance companies online, via phone, or by seeing agents face-to-face.

Securing multiple quotes is essential because policies for exactly the same amount of cover can vastly differ between providers. This is because each provider has a different method for determining your risk.

While some providers will rely heavily on your insurance scores to determine how likely you are to file a claim, others may evaluate your policy’s price by weighing up your car’s value and how expensive it would be to replace or repair after an accident. Some providers will assess your risk based on your demographic and ZIP code.

Step Four: Ask for a discount

Most insurance providers are willing to offer discounts, so don’t forget to ask if you qualify for them. Some insurers will offer discounts for teens with good grades, and some offer discounts for taking driving classes or meeting annual low-mileage thresholds.

If your vehicle has an anti-theft device, you may qualify for lower auto insurance premiums. Securing a discount can make a big difference to monthly rates, so be sure to ask for a list of all the deals an insurance provider offers.