Car Insurance Estimates – Warning Signs You Can’t Ignore

Shopping online for car insurance estimates is the best place to start, but before you fill out any forms, there are some things you need to consider.

What if you were so unlucky to be caught up in a car accident, knowing that you are adequately covered for any eventuality will give you peace of mind. Even though car insurance estimates can vary by hundreds of dollars from one company to the next, opting for the cheapest quote might not be the answer, but at the same time you don’t want to be paying more than you have to.

There are many factors that are taken into consideration, including: the type of car you drive (older cars typically cost less to insure and the less sporty and plainer your car will also help); the safety features it has (such as anti-lock brakes and automatic seat belts etc.); where you park your car (in a garage, in your driveway or on the street); your driving record; the exact location where you live (insurance rates vary from state to state and can even vary by zip code); if you took defense driving lessons; if you go to school or are in the military; it also depends on your credit history and the amount of coverage you want.

Each insurance company has its own particular set of rules in weighing up all of this information and calculating your premiums, this is why it is important you obtain several estimates before you make any decisions. Here are some tips on how to proceed:

(1) Find out how much coverage you will need in the state you live in. You can easily get this information by doing a quick search in google, enter the name of your state followed by the words ‘car insurance requirements’ eg. California car insurance requirements, Florida car insurance requirements etc.

(2) You’ll have to decide how much liability coverage you will need. This is where it does help to speak to several car insurance estimators to get a general idea of what their recommendations are in your state. A serious car accident can be costly and your state’s minimum required level of coverage may not be sufficient to pay for the medical bills and any property damage. The insurance information institute recommends that you carry at least $100,000 of bodily injury protection per person and $300,000 per accident.

(3) The quickest way to a ballpark figure is to submit an online form, this usually takes between 10 -15 minutes for each site you visit. You won’t always get an instant quote and some companies may contact you later by email. If you are concerned about giving out your personal email address and the possibility of receiving unsolicited mail in the future then get yourself a temporary ‘disposable’ email address from yahoo.com.

(4) Look in the phone book and call a few local independent agents. Professional Insurance Agents (PIA) will give you rate comparisons from several companies they represent. Be upfront and let the agent know you’re shopping around for car insurance estimates, ask for his advice first and then ask for his best offer, but don’t rush into anything just yet, even if you are offered some attractive rates. Let him know you’ll be making your decision in a day or two, meanwhile ask the agent to email you his quote so that you have a permanent record.

(5) By now you’ll have several car insurance estimates to choose from. What you mustn’t do next is fall into the trap of going with the cheapest insurer on your list without further investigation. The sad truth is some insurance companies use dishonest practices to avoid paying out on claims or delay tactics that can go on for years to force you to settle for less. You need to consider the reputation of the company (a) Have other people had issues with this company in the past? Are they trustworthy? By visiting http://www.naic.org/state_web_map.htm you can do a search for consumer complaints ratios and rankings of insurers in your state. (b) Ask for recommendations from your local car dealerships and body shops. (c) Finally, check with www.AMbest.com an independent rater of all insurance companies, if the company is given a rating below ‘A’ then think twice before signing with them.

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