8 Easy Steps to Buying the Right Insurance for Your Family Car

8 Easy Steps to Buying the Right Insurance for Your Family Car

Buying the right insurance for your family car can be a daunting task, but it doesn’t have to be. In this post we’ll help you make sense of the different types of insurance and give you 8 easy steps to purchasing the right coverage for your needs.

1. Compile a list of your family’s vehicles

In order to best determine the types of insurance you need, it is important to have a clear understanding of what types of cars or vehicles you have in your household. This will help ensure that all future policies you purchase are right for your needs.

2. Determine which cars require full coverage auto insurance

In some cases, you may be required by law to carry full coverage insurance on a particular vehicle. In other instances, it may make sense to get full coverage on a particular car if one of your family members will frequently be driving the vehicle or if you have a particularly expensive model.

3. Decide whether or not you want liability coverage

Liability coverage protects you from the financial consequences of a car accident. If you’re not planning on taking out loans or signing leases for vehicles in your household, then liability coverage may be right for you. 

4. Choose what types of comprehensive and collision insurance to get for each vehicle

Comprehensive insurance covers damage to your car that is not related to a collision, such as hitting a deer or running into a tree. Collision insurance covers damage from a direct impact with another object, such as another car. In general, you should only purchase comprehensive and collision coverage if your car is relatively new or is worth more than $3,000.

5. Look for discounts on full coverage insurance

While it may seem as though you’re getting a good deal by purchasing full coverage on every vehicle, you may actually be missing out. Many insurance companies offer discounts to drivers who have very low car usage or no accidents on their records. If your family rarely drives and has a clean record, then these types of discounts could really bring down your premiums.

6. Decide whether a high deductible makes sense for your family

A higher deductible will lower the cost of your monthly premiums but will mean that you have to pay for damages to your car before the insurance company starts paying out. This may be a good option if you can afford to pay out of pocket for minor scratches and dents.

7. Look for discounts on liability coverage

In most states, drivers under 25 are required to carry double the liability insurance of older drivers in order to compensate for their lack of experience. In addition, car owners with more than one car or a history of good driving may also qualify for significant discounts on their rates.

8. Never buy insurance through your car dealer

Many dealers will offer auto coverage at a discounted rate, but that only means you’re getting ripped off. Insurance companies don’t have to accept their rates and often charge drivers more money for the same policy. Never buy insurance from your dealer.

Who needs full coverage auto insurance?

In some cases, you may be required by the government to carry full coverage on a particular car. In other instances, it might make sense to get full coverage for a car if one of your family members will frequently drive that vehicle or if it is an expensive model.

What kinds of discounts can I get on auto insurance?

There are a number of ways you may be able to reduce the cost of coverage for each car in your household. While some companies offer discounts if you’re over a certain age or have a good driving record, others will give you a break if you don’t drive your vehicle frequently. Insurance companies also offer group discounts to married couples and people who live in the same household. Combine these kinds of options with single coverage and high deductibles to find the most affordable policy for your family.

What is a deductible?

A deductible is the lump sum you will have to pay for damages before your insurance company compensates you. While a higher deductible will lower your monthly premiums, it also means that if you have an accident then you’ll be footing most of the bill out-of-pocket. In general, the higher your deductible, the lower your premiums will be.

When should I choose liability over full coverage?

While it might seem like a good idea to get both types of insurance, in most cases that is not necessary. If your family rarely drives or has a clean driving record, you may be better off without collision and comprehensive coverage. Check with your insurance agent to determine whether this type of policy makes sense for you.

Taking All Of This Into Account

You’ve reached the end of this blog post, which means you are now armed with 8 easy steps to buying insurance for your family car. We hope these tips were helpful and that they will help guide you in finding an affordable policy. If you have any additional questions or comments, please share them below!

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