When it comes time to purchase an auto insurance policy, many people shop around in order to get the cheapest coverage possible. However, getting the cheapest coverage possible is not always the best option. Instead, you should consider investing in insurance coverage with a high-quality insurance company with a detailed policy.
Reason #1: Enjoy Broader Coverage
When you compare auto insurance policies, you need to pay careful attention to who is covered by your policy. More affordable coverage often limits your coverage only to those on the policy.
So if you let your friend drive your car to go to the grocery store to pick up something while you are getting ready for a party, and they get into an accident, your insurance will not cover them.
Most high-end insurance policies will cover not just the people whose names are on your vehicle title, but anyone who drives your vehicle. So, if someone borrows your vehicle one time and gets into an accident, your insurance will still protect them and your vehicle. Carefully read the fine print about who is covered in the event of an accident when looking at various insurance quotes.
Reason #2: More Than Minimum Coverage
Offering only minimum coverage is another tactic some more affordable auto insurance companies use in order to keep the prices low. The truth is that the minimum liability limits will not provide you with the protection that you need should you get into an accident with a newer vehicle.
The cost of fixing or replacing a newer vehicle or providing extensive medical care can easily exceed the limits of your liability coverage, leaving your other assets vulnerable.
You want to work with an insurance company that allows you to increase your liability coverage. Increasing your liability coverage may add a few dollars per month to your premium and can protect your other personal assets in the event of an accident you are deemed responsible for.
Reason #3: Lock In Rates for Longer Periods of Time
With most insurance companies, when they quote you a rate for your insurance coverage, you are only entitled to that rate for a six-month period. After that six-month period, the auto insurance company will review your coverage and may choose to change your rate.
With higher-end auto insurance companies, you can lock in your quoted rate for an entire year, instead of just six months. That means your insurance premium rate will not change for twelve months. This gives you peace of mind and means you don't have to shop around for the best insurance rates every six months.
When it comes to purchasing vehicle insurance, the cheapest rates are not always the best rates. When looking at insurance coverage options, make sure anyone who drives your car, not just those listed on the policy, is covered.
Make sure you can sign up for more than the state's minimum liability coverage at an affordable rate. See if you can lock in the premium rate for a year instead of six months. Many high-quality insurance companies will offer you these benefits.
For more information, reach out to an auto insurance agent in your area.