When shopping for auto insurance, it may be easier to think of your auto insurance policy as six separate policies. Some of this coverage is required by state law. Other coverage is optional. Consider each one and ask yourself how much you need. Each type of coverage has its own premium. Add them up and you've got the price of your auto insurance policy. Subtract the ones you may not need and you gain some control over the cost. Use the following worksheet to help you and your insurance agent select the best auto insurance policy for you. Answering these questions for yourself on an annual basis can help you keep your policy up-to-date.
1. Who are the drivers in my household?
What are their ages, where and how often do they drive?
2. What deductibles can I afford?
Choosing higher deductibles can lower your auto
insurance premiums, but also consider how much you can afford out-of-pocket in the event of an accident or vehicle damage.
3. What assets do I have to protect?
Knowing this can help you determine how much liability coverage to purchase.
4. Does my family have health insurance?
What does it cover? What are the out-of-pocket maximums, deductibles and co-pays? These questions might be considered when deciding whether or not to purchase med pay coverage and how much.
5. What is the estimated value of my car?
If your car is fully paid for you might
consider the value of what you are insuring compared to the annual cost of insuring it when deciding whether to purchase collision or comprehensive insurance.
6. Is my car paid for or do I have a loan?
Lenders require you to carry collision and comprehensive coverage in addition to