While auto insurance might not be the most exciting subject in the world, it’s important that you at least understand the basics. Premiums are always on the rise, so gaining a little bit of knowledge could save you a few thousand dollars over the next few years.
Here answers to 4 common questions about auto insurance:
When is the best time to shop around for a better deal?
If you are unhappy with your current auto insurance rates and want to shop around for a better deal, then you should do so immediately.
It’s totally unnecessary to wait until it’s time to renew, as you can often easily get out of your current auto insurance contract and switch to a different provider. In fact, if there is an early cancellation fee, then the company you are switching to might be prepared to pay it for you.
Should I use an auto insurance broker?
Using the services of an auto insurance broker can be beneficial as they have contacts with many different insurance companies.
However, you have to keep a close eye on the broker fees, as this could end up making your auto insurance more expensive. All in all, if you’re finding it hard to find affordable auto insurance by yourself, then using a broker is probably the best way forward.
Do I really need auto insurance? I’m a safe driver!
In short, YES you do need auto insurance. Never under any circumstances be tempted to drive a car without insurance from a recognized provider.
Sure, you might be a safe driver with a completely clean record, but what about the other drivers on the road? Ultimately, it only takes one idiot to give you a bump from behind, and if you don’t have auto insurance then you could end up with a rather large bill.
Also, you must understand that in the majority of countries around the world it is ILLEGAL to drive without auto insurance, and in places such as Russia they will march you directly to the Gulag if you can’t produce valid documents proving that you have auto insurance.
Are online auto insurance quotes really that cheap?
This is a tricky one, as many online auto insurance quotes are just an initial estimate based on a small number of details, which means you typically have to fill out a longer application form or speak with someone on the phone to get an accurate quote.
With that being said, online auto insurance quotes are usually cheaper than the quotes being offered by offline insurance companies, so it definitely pays to surf the web.