5 Important Things You Should Consider Before Getting Auto Insurance

Applying for auto insurance should be a non-negotiable when you have a car. LexisNexis Risk Solutions released a report which found that there’s been a recent rise in risky driving behaviors like distracted driving, resulting in an abnormal spike in major speeding violations. There has also been a rise in yearly traffic fatalities. This means that even if you’re a safe driver, there may be some risks outside your control that you’ll need to prepare for.

With how complex auto insurance can be, there would be many things to consider before you apply for yours. Knowing these can help you make the most out of your policy. Here are some factors to consider.

5 Important Things You Must Know Before getting auto Insurance

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#1. What coverage you will need?

There are three main types of auto insurance: liability, comprehensive, and collision. Liability covers the costs for damages you’ve caused to another person or their property, while collision covers damages your car incurs. Meanwhile, comprehensive insurance pays for theft or damages caused by natural disasters, vandalism, and accidents involving animals. To know which ones you’ll need, you must consider the area you live in, your driving habits, and who will drive your car.

For instance, if you live in a temperate state or low-crime neighborhood where vandalism is not likely to occur, you might not need comprehensive insurance. Likewise, you might not need liability insurance if you’re a safe driver. On the other hand, if you have teens driving your car, consider insurance for them. Our article ‘Top 10 Cars For 16 Year-Olds 2022 — Best Cars For Teens’ explains that teenagers are more prone to accidents, with costs amounting to $13.1 billion in 2019 alone. As such, you’ll need to protect them with an insurance policy.

#2. Value of your Vehicle

#3. Getting Discounts

Before settling on an auto insurance policy, ask your provider whether they offer discounts. A feature by Sound Dollar on how you can save on auto insurance recommends taking good care of your vehicle and practicing safe driving. Parking your car in a garage, installing safety equipment like anti-lock brakes and airbags, and anti-theft features like tracking or recovery devices can help you qualify for discounts.

Having a safe driving record can also lower your auto insurance rates. Adversely, violations like fleeing from the scene of an accident, driving under the influence of alcohol, and speeding can raise your rates. Some insurance providers offer mobile apps tracking your driving habits to reduce costs. Whether or not you have these apps, driving more slowly, reducing nighttime driving, and avoiding using your phone on the road can be beneficial to your safety, as well as your driving record and insurance rates.

#4. Your credit score

One of the things that might impact your auto insurance rates is your credit score. A high credit score can significantly lower your auto insurance premium, while a low credit score can make it challenging to secure favorable deals.

If you currently have a low credit score, there are ways to boost it. US News suggests raising your credit score by consistently checking your credit reports and disputing errors that you spot. Ensure that you make payments on time, preferably in full. You can also lower your credit utilization rate by spending way below your credit limit. If you secured your auto insurance policy on a low credit score, check in with your provider to explore the possibility of your rates changing.

#5. Review Your Insurance

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Conclusion: What to Consider Before Getting Auto Insurance?

Auto insurance is necessary to protect yourself and your loved ones from any possible incidents. While you never have complete control over what happens on the road, educating yourself about auto insurance policies can help you make the right choices for your safety. Thanks for reading!

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