Historically, purchasing auto insurance required picking up the phone or visiting an insurance agent's office. And your options may have been restricted to the insurance companies with which your agent was affiliated.
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Today, you can buy auto insurance online, but this comes with its own set of challenges. With so many options available, it can be challenging to zero in on the ideal policy.
But do not fret. We will show you how to find a good policy at a reasonable price from the best auto insurance providers without leaving your couch.
Before you begin your online shopping, you'll want to ensure that you've gathered all the pertinent information. This will improve the efficiency of the process and produce more accurate auto insurance quotes. Here is the needed information:
1. Include the name, address, and date of birth for each driver who will be listed on your insurance policy.
2. Driver's license information for each insured driver
3. Every driver on the policy's driving record, including completed defensive driving courses, traffic violations, and at-fault accidents.
4. The year, make, model, current odometer reading, and vehicle identification number of a vehicle.
5. Current insurance provider (if applicable) and coverage limits
To obtain your driving record, visit the website for motor vehicles in your state. You can typically download and print your driver history for a small fee, such as $2 in California, $8 in Massachusetts, and $10 in Florida and Massachusetts.
Determine the required amount of car insurance
The next step in purchasing auto insurance online is determining how much coverage you require. You want to dial the correct number. If you purchase excessive auto insurance, you will pay for coverage you do not require. However, if you purchase insufficient coverage, you'll be underinsured, which could result in significant out-of-pocket expenses if you cause a car accident.
Here are the primary car insurance options to consider:
Liability insurance
If you cause a car accident, your liability car insurance pays for injuries and property damage to others, such as their medical bills and car repair costs. It also covers legal fees if you are sued due to an automobile accident.
Except for New Hampshire and Virginia, every state mandates that you carry a minimum amount of liability auto insurance. For instance, if you purchase auto insurance in California, you must purchase at least 15/30/5 coverage. What do these numbers mean?
- $15,000 for one person's bodily injury or death
- $30,000 for bodily harm or death to multiple people
- $5,000 for damage to property
It is prudent to purchase more insurance than your state's minimum liability requirements. Typically, these amounts are insufficient. For instance, if you cause a major car accident in California that results in serious injuries and the total loss of the other driver's vehicle, $15,000 for medical expenses and $5,000 for car repair bills won't go very far. And you will be responsible for any amount that exceeds your policy limits.
It is recommended that you purchase sufficient liability insurance to cover potential lawsuit losses.
Uninsured motorist insurance
Not everyone is a model citizen who purchases the minimum amount of auto insurance. According to the most recent data from the Insurance Research Council, one out of every eight drivers is uninsured. Then there are drivers who purchase only the state minimum and are underinsured in the event that they cause an accident.
So, what happens if a driver without insurance or insufficient insurance hits you? Uninsured motorist insurance (UM) and underinsured motorist insurance cover medical expenses, lost wages, pain and suffering, and funeral costs for you and your passengers.
In some states, UM is required, while in others, it is not (you can reject coverage in writing). Even if UM coverage is not required in your state, you should still purchase it.
Comprehensive and collision insurance
If you want coverage for your own vehicle's repair costs, you must add collision and comprehensive coverage to your policy. These coverage types are frequently sold together, but they cover distinct types of occurrences:
1. Collision insurance pays to repair or replace your vehicle after an accident, regardless of who was at fault. For instance, if you crash into a guardrail or someone hits you at an intersection, you can file a collision insurance claim.
2. Comprehensive insurance pays to repair or replace your vehicle if it is stolen or damaged by events such as floods, fire, hail, vandalism, animal collisions, or falling objects.
If you lease or finance your vehicle, your leasing company or lender will likely require you to purchase these types of coverage. Full coverage auto insurance is sometimes used to describe a policy that includes comprehensive and collision coverage in addition to the mandatory liability coverage.
Medical Payments
Coverage for medical payments, also referred to as "MedPay," is typically offered in amounts ranging from $1,000 to $5,000 as the maximum benefit. No matter who was at fault for the accident, it will pay for your medical bills as well as the medical bills of your passengers. There are some states that do not offer the MedPay program.
Where Do I Get Car Insurance Quotes Online?
Now that you've gathered your information and determined how much auto insurance you require, you can begin requesting quotes. Do not skip this step and obtain quotes from multiple companies. Insurers price their policies differently, and you can often find the same coverage at a lower price with a different insurer.
The best way to find an affordable auto insurance policy is to compare quotes from multiple insurance providers.
Online, you can typically obtain auto insurance quotes from either the insurer's website or a comparison website. Let's examine both.
Typically, you can find free auto insurance quotes on the website of an insurance provider. On the insurer's website, there will likely be a button you can click to initiate a quote. You will be asked to enter details including your:
Age at birth
ZIP code
Identifying information
Vehicle class
Driver record
You will also have the option to select coverage types, policy limits, and, if applicable, add additional drivers.
After entering all of the required information, you will receive a quote. Typically, you will also be able to review and modify your coverage choices. You may have the option to purchase the policy if you are satisfied with your coverage choices and premium.
However, before making a purchase, you should compare insurance quotes from multiple providers. You may be able to negotiate a lower price or better coverage options.
Buying car insurance online through a comparison site
Utilize a comparison website in the event that you are interested in obtaining price estimates from a number of different insurers all at once. You will be required to enter information that is very similar to what is requested by websites that represent insurance companies. After that, the comparison website will present you with car insurance quotes from a number of different companies.
When you want to get an overview of multiple quotes at once, using a comparison website can be a helpful tool. On the other hand, it's possible that some websites only provide a select few quotations. On the other hand, the website might not show you the rate that was quoted but might instead send you to the website of the insurance company, where you might be required to enter more information.
If you are unhappy with the quotes you have received, you may want to try using comparison websites as well as the websites of various insurers.
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