Monday, May 11, 2015

Tips for Taking Out Your First Insurance Policy

Many people are fortunate enough to be put on their parents’ insurance when they first start driving. Some are even lucky enough to have their parents actually pay for their insurance too. However, the time will come for everyone when they’re expected to open up their own insurance policies for the very first time. Whether the people in your life are insisting you do that from the get-go or you’re opening a policy after years of having someone else handle your insurance, know that it’s not as hard or as frightening as it might seem. By following a few simple tips, you can take out insurance, get a great deal, and be feeling pretty proud of yourself before you know it!

Compare, Compare, Compare                  

First things first, know that there are a lot of insurance providers out there, and the moment they find out that you’re in the market for one, they’re going to be vying for your attention. Put aside all the hype and pushy marketing gimmicks, and do some real research on different providers on your own. Compare rate quotes from different insurers. Think about price, especially if you’re on a budget, but don’t think only about price. Also really consider what you’re getting from each provider- the “bang for your buck,” and go with the most affordable provider who still manages to offer you everything you need.

Carefully Consider Your Comprehensive and Collision Deductibles

When you’re comparing the details of different policies and what they offer, be sure to pay special attention to your comprehensive deductible. It’s one of the most important parts of any insurance policy. Comprehensive coverage is there to protect you in the event that something unexpected, like a flood or a fire, damages your vehicle. The deductible, however, is the amount of money you’ll be expected to pay, out of your own pocket, for repairs resulting from these types of things. The higher your deductible, the lower your cost, but the lesser your protection level, so you’ll have to think about budget, risk, and many other factors as you find that perfect deductible to meet your needs. And you get to do it all over again when it comes to choosing your collision deductible, which abides by the same basic principles, too. Lucky you!

Know How Much You Get in a “Total Loss” Scenario

Finally, you must know the value of your car because if you get in an accident and the damages are going to cost more than around half the value of the car, it’s probably going to be deemed a “total loss.” When that happens, your insurance provider gets to write you a check- which you can use to get a new car- and then be done with it. Sadly, though, these checks aren’t always as nice as you might expect and can vary in amount depending on a provider’s specific policies. So, read the fine print carefully and never sign on the dotted line until you know and are happy with what you’d get in the event of a total loss.

As you can see, a lot of thought has to go into choosing your first insurer, but take it one step at a time, and you should end up with a great policy and, even more importantly, a sense of pride.

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