Around 80% of millennials in the United States of America own a car. Having your vehicle can make moving around significantly more accessible and improves your personal and professional life to a great extent. However, using a vehicle for commuting also comes with numerous risks, such as theft, accidents, and personal injuries. According to statistics, around 35,766 fatal motor vehicle crashes occurred in the United States in 2020 alone, making it essential to protect your car with adequate insurance.
When it comes to a car insurance plan, there are numerous insurance companies you can choose from. Finding an ideal insurance policy for your car can involve comparing the competitive prices and maximum coverage, which can be quite challenging. For this reason, we have compiled a list of factors that can help you pick the right car insurance policy:
- Identify Your Coverage Need
You can find comprehensive coverage even in cheaper policy options like CCIF. Still, some more affordable policies may not cover your vehicle extensively and provide the liability protection required by the government. It is crucial to note the legal requirement of your car`s liability coverage in your respective state and sign up for a policy that aligns with it.
- Access the Financial Standing of Car Insurers
Selecting an insurer with sound financial health will help predict the speed at which the company will be able to process and refund your claims in the future. We recommend comparing the potential insurer’s financial stability by searching for word-of-mouth reviews and their online website. Rating companies like Fitch and Moody’s have reports analyzing top countries` financial health, and you can visit their websites to find them.
- Check Available Discounts
The price quote of the car insurance policy arguably plays a significant role in decision-making. Most insurance companies offer several seasonal or festive discounts. This can help you get an expensive policy at a cheaper rate, making that policy much more affordable. Installing an anti-theft device also qualifies you for state-incentive-based discounts and can make your policy more affordable. If you are a student or parent of a student, you may also qualify for some discounts on your car insurance, depending on your insurer. It is recommended to contact your shortlisted companies and ask their customer support about any potential discounts each company offers.
- Compare Claim Settlement Ratio
Your insurer should have a proven record of a seamless settlement claim process while maintaining a healthy ratio between the raised claims and their settlement. This can prove a company’s credibility and establish trust in its ability to fulfill its claims. You should search for insurers that provide an accessible online settlement claim process which can help you skip the lengthy paperwork, commute cost, and multiple draining visits to the office.
Different insurance companies offer various services and extents of coverage for their clients. Some companies may be willing to create a custom plan for your vehicle’s unique needs and offer you discounts during festivities. Installing an anti-theft device, or being a student, may also help you get some deals and discounts. When choosing your insurance provider, it`s a good idea to compare the price quotes, claim-to-settlement ratio, and reviews online to check the company’s credibility. We also recommend reaching out to your friends or family for word-of-mouth reviews and their experience with their car insurance companies. It is essential to have a conversation with the customer support of your insurer to inquire about any potential discounts and customization to the policy plan, as well as understand the coverage provided by the insurer for any risks associated with owning a vehicle.