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# 8 Questions to ask before buying auto insurance By LifeSaver @27

Aug 31, 2021


Make sure your car coverage reflects your needs and budget

The  vehicle you own, your personal priorities and your budget all factor  into your unique auto insurance needs. Before comparing policies and  insurers, evaluate how you use your car and what risks you face to  figure out what options make the best sense for you.     

1. How much do you drive?

Do  you absolutely need your car every day—for instance, to commute to work  or drive the kids to school and activities? Do you drive 100 miles a  month or closer to 1,000 or more? Make sure your policy reflects how  much you use your car. If you don’t drive a lot, you may want to opt for  mileage-based insurance. 

2. Will you be using your car for work?

If  you use your car not just to get to work, but to perform tasks for  which you get paid, commercial auto insurance is a necessity. A personal  auto policy will not provide coverage if you transport paying  passengers through a ride-share service, deliver pizzas, drive as a  courier or use your car for other commercial activities. 

3. What type of car do you drive?

Insurers  have mountains of data, and they know in precise detail what types of  cars, makes and models are more—or less—likely to incur claims. A flashy  sports car with a powerful engine may be more likely to be stolen  and its bodywork costs will be more than on a mid-sized sedan—and your  insurance will be priced accordingly. Some types of cars—such as  modified or classic cars—require special insurance. By the same token,  you may receive discounts if you have a “safe” car—one with the latest  safety features and a good safety record. 

4. How much do you love your car?

If  you love the way your vehicle looks and take pride in its appearance,  you’ll likely want it fixed perfectly—or replaced with the same model—if  it gets damaged. That means you’ll probably to consider the fullest  range of insurance—including collision, comprehensive and glass  coverage. On the other hand, if you drive a beater, see cars merely as  transportation and want to save on premiums, you might prefer to limit  your policy to liability. 

5. Where do you live—and park your car?

Where  you live will impact your insurance rates—and it may be a factor in  what coverage you purchase. For example, cars parked on the street in  urban areas face a greater risk for theft or vandalism, so comprehensive  coverage might be a good option. You may discover that your premium  rates are lower if you move from a city to a suburb. 

6. Who else will be driving the car?

Generally,  your car insurance will cover other occasional drivers. However, if  other drivers live with you and use your car—whether a spouse, a teen  driver or a housemate—they should be listed on your policy. 

7. What are your legal obligations?

Nearly  every state requires that you carry minimum liability coverage for your  car. At the very least, you need to make sure your policy complies with  state mandates. However, the levels of required coverage are generally  pretty low. Keep in mind that, if you are involved in a serious  accident, you may be sued for a large sum of money. Depending on your  assets and financial risk tolerance, to be safe, you’ll probably  want to purchase a higher level of liability coverage. 

8. Is your car financed or leased?

If  you still owe money on your car or have to return it in good condition  when a lease expires, you’ll likely be required to insure the car for  its full value—and even for any gap between what you owe and the car’s  market value. Collision and comprehensive will cover damage to your  car—and supplemental gap insurance will cover the rest.  

Keep in mind that your insurance options and costs will also be  affected by your age, gender and driving record. Be aware too that your  credit score can also impact your insurance rates. Once you’ve looked at  your needs and priorities, and understood how insurance options will  match them, you’ll be better prepared to make an informed decision about  the types and levels of coverage to buy.