Auto Insurance FAQs

It’s just an unpleasant fact of life – accidents happen. Of course, we all hate to think about that sort of thing happening to us, which is why having solid life, health and auto insurance gives us such great peace of mind. Life and health insurance are somewhat easy in that they are usually provided by our employers, so for many of us there’s not a lot of thought that goes into choosing a provider for that kind of insurance. Our employer gives us information about 2 or 3 different health insurance plans and then we pick the most affordable for our budget. Unfortunately, though, they don’t offer auto insurance faq sheets or plans.

Indeed, our auto insurance is solely up to us and there are hundreds of companies to choose from. Most of us have heard of all the big ones like State Farm and Geico. But there are tons of smaller companies that vie for our attention by offering much lower prices or more incentives. Many people are often swayed by these slick ads – only to regret it later. Yes, it’s important to shop around and find out the best value for your money, but spending a few extra dollars in the beginning can potentially save you THOUSANDS if you ever have to file a claim and find out that your bargain insurance company doesn’t quite offer everything that they claimed they did.

To that end, here are some auto insurance FAQs to help you in your quest for an affordable – yet RELIABLE – plan:

Q: Are only the big companies trustworthy? Because I found a small company that’s offering me a really low price for auto insurance – should I buy it?

Well, what if you save a lot of money but the insurance company you purchased your policy from has a tendency not to honor and pay out on claims but rather always finds a way to deny them. Then the savings don’t amount to much. And you need to be sure that this is not a company that will take your money and run – leaving you with a paid receipt but no insurance. Certainly not a bargain there! I’m not saying that the big companies are the only reliable ones but just make sure to check this smaller company’s references, BBB rating, etc. So you know they are what they say they are.

Q: Where do I start looking for a good auto insurance policy?

Companies like Allstate, State Farm, Progressive and of course several other big companies can be found online. Most companies offer online quotes which is very handy. No more sitting on the telephone waiting to speak to an agent. No more driving half way across the city to get rates then driving half way around the city to get another rate – Okay I’m sure you get the picture! It’s tiring just thinking about it. It’s so much easier just to pull up a chair and put your mouse to work.

Q: I want to take the less expensive monthly plan but the deductible is so high! Should I just buy the more expensive plan to get a lower deductible?

It’s true that high deductibles mean lower rates, but why have a $100 deductible if a $1000 deductible will not break you? Honestly, it makes more sense to save money on the monthly payments, invest those savings some place else, and take the $1000 loss a few times in your life, or perhaps never. In the meantime you’ve saved MANY thousand. Naturally, get quotes with assorted deductibles, to be certain you are saving enough for the higher risk.

These are just a few questions to get you started. Choosing the right auto insurance company can be challenging and since it is often a major part of your monthly budget, you want to really make sure you’re getting the most ‘bang for you buck’. Just be sure to keep asking lots of questions shop around and take the time to find a company you can count on.