When you are shopping around for car insurance, it can get confusing. There are so many companies to choose from. Prices seem similar but some may have certain perks that are beneficial to you while others might not have any of them.
Before we delve into the nitty-gritty of picking a specific company and policy, let’s take a look at some of the things you should look out for when it comes to insurance in general.
Choosing a policy is no easy task especially when there is so much information available on the internet and in person. It’s difficult to keep track of everything that has been said about car insurance. When you’re looking around, remember these tips:
1. Always find out what kind of policy you’re getting into. Car insurance is not the same as health insurance- although there are some similarities between the two, it’s much easier to compare car policies than it is to compare medical ones. When looking at car insurance, see if the company offers collision and comprehensive coverage. This will cover you in case of an accident.
You should also look for price quotes that are available online. It’s easier to compare plans when you can see them side-by-side. You also have more time to think about it this way and there won’t be any pressure.
2. Be aware of how much you’re paying for your car. This might not seem to be related but car insurance companies base their rates on the value of your car. If you have an expensive car, you will pay more than someone who has a cheaper one.
3. It’s important to go with a company that is reliable and can provide good service should something happen. You don’t want any mishaps to ruin your experience with an insurance company . Keep in mind how long the company has been around and for how long they’ve provided good service.
4. Not all policies are equal. Make sure that whatever policy you go with will provide you with the coverage you’re looking for. If you want your car covered 24/7, make sure that’s available with the policy. If you want to be covered when you travel outside of the country, find out if it is available with your plan too. If not, get quotes for a new plan before buying one so that you know what kind of coverage and benefits you’re getting into.
How often do you pay car insurance?
When buying car insurance, it’s important to be familiar with the terms of your contract. After all, there are a lot of companies out there offering all kinds of different types and prices for vehicle insurance.
While the average policy lasts for six months – known as a “term” – some customers choose to pay monthly, quarterly or yearly. It’s usually easier to keep track of your payments if you go with an annual plan rather than trying to find some money every three or four weeks.
The other main difference between plans is that some are paid once, upfront at the beginning of the policy. While others are split into equal monthly payments – usually due on the same day every month.
It’s important to know how often you will be paying your car insurance premiums before signing up for a plan. If you choose an annual contract and then change your mind half way through, you will be required to pay the remaining time of your contract.
This isn’t usually a problem if you’re on an annual plan, as you may just want to cancel and start again for another year. However, some monthly policies can automatically renew at the end of term – meaning they keep rolling over for another period of six months without your consent.
The easiest way for insurance companies to ensure that the person has paid his/her premium is by using an electronic transfer. Just like your banking information, it’s easy to provide them with your account number for this type of service.
Some policies require a check or money order payment, but these are becoming less common as technology advances.
While you will probably get a refund check for any remaining money left in your account at the end of your policy, you’re usually required to return it to the company within 30 days or else they may start charging interest.
To avoid any unnecessary charges due to late payments, read your contract thoroughly before signing up. This way, you know exactly what your responsibilities are and how often you need to pay. If you still have any questions after reading it, contact your insurance company and ask.
You should also be aware that simply canceling a policy or not paying won’t cancel the registration of your vehicle with your state’s department of motor vehicles (DMV). This means that if you don’t pay the premium, you could lose your registration and have a suspended license.
To avoid all of this happening in the first place, just be sure to set aside some money every month for your car insurance. That way, there won’t be any issues when it comes to paying for it on time each month.