How to Choose the Best Auto Insurance Policy for Your Needs

Finding the right auto insurance policy can be a nerve-wracking experience. You want a policy that fits within your budget, but you also don’t want to end up with inadequate coverage. Further complicating your search are the many options available to you.

Do you choose full coverage or liability only? A higher deductible for a lower premium? It can feel overwhelming trying to figure out what’s right for your specific needs.

Fortunately, finding the best auto insurance policy doesn’t have to be so difficult. Read on to learn how to choose a policy tailored to you.

Understanding the Types of Auto Insurance Coverage

When choosing an auto insurance policy, it’s helpful to understand the types of coverages available:

• Liability Coverage: The most basic coverage, included in all auto insurance policies. This coverage is divided into:
• Bodily Injury Liability: Helps pay for injuries to others if you’re at fault.
• Property Damage Liability: Covers damage to other people’s property.
• Collision Coverage: Covers damage to your vehicle from collisions with vehicles or objects.
• Comprehensive Coverage: Covers non-collision related damage such as theft, fire, vandalism, or weather events.
• Personal Injury Protection (PIP) and Medical Payments: Helps cover medical expenses from accident-related injuries.
• Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver with insufficient insurance.
• Optional Coverage: Includes extras like roadside assistance, rental reimbursement, or gap insurance.

Coverage availability and benefits can vary by insurer and policy. The coverages described above are subject to the terms, conditions, and limits of your specific policy and may not apply in all situations.

Factors to Consider when Choosing Auto Insurance

There are several key factors to keep in mind when choosing an auto insurance policy. Discuss these with your insurance agent to make an informed decision:

Full Coverage or Liability Only?

If your vehicle is paid off or rarely driven, basic liability coverage might suffice. But if you want full protection, full coverage offers peace of mind. Weigh your risk tolerance – lower premiums now could mean higher out-of-pocket costs later.

Deductible Amounts

Your deductible amount is what you pay out of pocket before insurance covers a claim. Choosing lower deductible amounts increase premium, higher deductibles lower it. Consider your budget, driving habits, and how much you could afford to pay unexpectedly. Your agent can help you compare options to find the best balance for your needs.

Vehicle Usage

Is your vehicle used solely for commuting or is it used as a part of your business or job? Commercial or rideshare use often requires special coverage. Make sure your policy reflects how your vehicle is used.

Multi-Car or Bundle Discounts

Do you have more than one vehicle, or perhaps also have a motorcycle, boat, or trailer that you need insurance for? You could potentially save money by bundling them. It’s important to note, though, that not all insurance companies offer the same discounts or bundle options, so it’s best to speak with an agent to find out what discounts may be available to you.

Budget

At the end of the day, probably the biggest deciding factor when choosing an auto insurance policy is the price. While there are limits to how low your premium can go, your agent can work with you to try to get the most value for your money without sacrificing essential coverage.

Telematics

Many auto insurance carriers now offer optional telematics programs to reward safe driving, which utilize either your smartphone or a plug-in device to track your driving habits. These programs can potentially lead to additional discounts over time.

When in Doubt, Find an Agent You Can Trust

Even if you’re well informed, choosing the right policy can still feel overwhelming. Fortunately, the right insurance agent can make all the difference.

At 21st Insurance Agency, our agents are committed to helping you find an auto insurance policy that best fits your specific needs. Whether you need coverage for a single vehicle or multiple products, we want to make sure you find a policy you can be happy about with coverage you can depend on. Request a free auto quote online today or call us at 844-343-9408 to learn more!