auto insurance

Here is how to find a low-cost reliable auto insurance company

Do you need car insurance?

Have you been looking around for affordable options but to no avail?

Several auto insurance companies are competing to get your business. With an assortment of eye-catching policy options available, it becomes difficult to compare offers from different insurers and find the one that best fits your needs.

Mentioned ahead are a few important factors that you should take into account when finding a reliable and low-cost auto insurance company so you can get an affordable deal:

  1. ‘Low cost’ is different for everyone

No single auto insurance company can claim to be the low-cost option for everyone. The insurance company that is affordable for you might turn out to be expensive for someone else. It depends on various factors, primarily the salary and the state you live in.

One way to ensure that the low-cost auto insurance company that you are dealing with is actually offering you low-cost premiums is to look around.

A research conducted by NerdWallet found that drivers can lose up to $416 on average if they don’t compare insurance prices. Of course, you don’t want to lose that kind of money. Therefore, make sure to conduct an extensive survey before you deem an auto insurance company affordable.

  1. Find out what type of coverage do you need

Purchasing some type of auto insurance is an essential requirement for most states. The cheapest one available is liability insurance that covers you in case of an accident. However, this insurance does not provide coverage to your car.

If your state requires you to purchase a comprehensive auto insurance coverage plan, you will be covered at all ends. It will protect your car from animal collisions, accidents, fire, weather damage, vandalism, falling objects, and even if your car gets stolen.

Therefore, figure out which type of auto insurance coverage plan you need and then contact a company.

  1. Don’t forget to look for discounts

Auto insurance companies offer price breaks and discounts for several customers, including the ones who:

  • Use one policy to insure multiple cars
  • Pay the annual premium in one go
  • Have a car with safety and anti-theft features
  • Are associated with affiliate groups
  • Process documents online
  • Have a charge-free driving record
  • Combine their auto insurance policy with other policies

Source

Despite these discounts, make sure to compare the final amount with other auto insurers.

  1. Do consider local insurers

It’s tempting to go for the most popular auto insurance company that has fancy ads and big offices. But you’d miss out on great deals if you don’t check out your small, local insurance companies. Usually, these companies have higher customer satisfaction ratio and lower costs.

  1. Prioritize payments of bills

Another research conducted by NerdWallet found that people who have poor credit scores usually end up paying higher car insurance rates than ones with a good credit score.

In most states, credit score is a major factor that directly affects auto insurance quotes. The exceptions include Massachusetts, California, and Hawaii.

Insurance companies claim that credit score shows people’s ability of filing claims. Therefore, it becomes a major deciding factor in setting the amount of your auto insurance premium.

The easiest way to get low-cost auto insurance is to pay your bills on time, improve your credit, and keep a track of your credit score.

  1. Pay-per-mile or usage-based insurance?

Mileage-based insurance is an ideal option for people who drive fewer than 10,000 miles per year. Esurance Pay-per-mile and Metromile are the prime examples of this type of auto insurance. The former is available in Oregon while the latter is available in 7 states.

Alternatively, usage-based insurance is suitable for drivers who have low mile usage. By getting this insurance solution, you give your insurance company the authority to check your mile usage. In return, you get discounts based on the time and frequency of driving.

The bottom line

Finding the right coverage for your vehicle is essential and comparing policies from different auto insurance companies will enable you to find the best one for your needs.

Gainsco auto insurance makes it possible for you to get low-cost insurance without any hassle. Want to find out about your options? Give us a call at 1866.GAINSCO.

Happy auto insurance shopping!

Do I Have Enough Collision Insurance?

Car insurance is expensive – we get it. You don’t want to pay more than you have to. But you also don’t want to compound the challenge of an accident with additional expenses. Don’t pay for coverage that you never use, but don’t pay too little and end up paying too much out of pocket. Make sure that you have enough coverage if you are insured for collisions.

The Basics of Collision Coverage

Collision insurance covers you for repair bills caused by collisions. The plan does not cover you for thefts, explosions or damages caused by natural disasters. Receive coverage for all types of collisions that involve other cars and property. Truck accidents are the most expensive types of crashes, costing as much as $20,000 to $100,000 in property damages. And according to George Salinas, these types of accidents are on the rise.

The state has minimum requirements for car insurance coverage. In most states, you need liability, property damage and personal injury protection. This data gives you a good idea of the minimum coverage you need, but it’s a general plan, so many drivers get more coverage.

Determine the Car’s Value

Determine your car’s current value as you obtain collision coverage. Know if the plan covers the full amount of the car because many cars are totaled in collisions and cannot be repaired. The car’s value and your driving record affect the cost of your policy.

Compare Repair Costs vs. Insurance Coverage

Compare the average costs of collision repairs with the costs of insurance coverage to make sure that you are getting enough coverage. Consider the maximum amounts that you would pay for repairs if you ever get into a collision. Then, determine the maximum amount of coverage that the insurance company provides.

In a head-on collision, the entire front part of the car is damaged from the bumper to the windshield. Replacing a bumper costs an average of $500, and replacing a windshield varies from $200 to $1,000 on average. The prices vary based on the car’s make, model, age and condition.

Add up the repair costs and see if the total exceeds the replacement value of the car. In some cases, you should not extend coverage on your insurance. Save more money by replacing the car altogether. Some insurance companies offer a replacement if you did cause the accident.

Make sure that you are covered for collisions before one happens. Review the policy instead of having a claims adjuster contact you after an accident. By then, it’ll be too late once you discover that the insurer cannot pay for all of the damages. Before the accident occurs, get the full benefits out of your collision coverage plan.