Insurance is a necessity in many facets of our life. But car insurance is legally required when you own a car. You need to ensure that you are covered in the event of an accident or face the penalties that come with not having insurance.
But what should you be looking for in a quality insurance plan? There are more than a few questions that you should be asking before purchasing insurance for the first or next time. Here are five questions in particular that can save you a lot of money and hassle.
1. Is Your Car Used for Work?
The first important distinction to make is whether or not you will be using your vehicle for personal or work reasons. In this day and age, where food and package delivery can be done by almost anyone, this is an important distinction to make.
Basic, personal auto coverage won’t provide coverage if you use it for work-related things. So, if you plan to ride-share, deliver food, or act as a courier, you need to check your car insurance to make sure that you are properly covered.
2. How Much Are You Driving?
Insurance is meant to cover a lot of things, but part of what factors into that equation is just how much you plan on using your vehicle. Most of us use our cars for things such as going to work, going to school, and partaking in activities.
You need to know how far you drive. There could be a huge difference in policy between driving 100 miles a month and driving 1,000 miles a month. If you don’t drive a lot, there are mileage-based options that could potentially save you a ton of money.
3. What Kind of Car Do You Have?
Remember that there are a ton of factors that go into the cost of your insurance. One of those factors depends on what kind of car you drive. They each have their own individual risk factors that can either raise or lower your insurance.
If you have a “safe” car with a good safety record, it will likely save you money. But if you have a sports car, where safety features aren’t as good or it has a much greater chance of theft or damage, you could see a much higher insurance premium than you otherwise would have.
4. Where Do You Live?
Like the kind of car that you drive, where you live drastically impacts the cost of your insurance. If you live in an area that is considered to be safer – meaning lower crime rates – your insurance rate will be lower.
Crime rate is just one of the location-based factors. If you have a dedicated space to park such as a driveway, that is also considered to be safer than if you park on the street in an urban area. The greater the likelihood for vandalism or theft, the more comprehensive coverage that you may find you need.
5. Who Else Is Driving?
This may not be a complicated answer if you are single and driving your own car. For families, however, this can get a little more complicated. For the most part, insurance covers other occasional drivers – with a caveat.
If there are other potential drivers living with you, be it a spouse, a housemate, or a teen driver, then they should be listed on your policy as well. This ensures that, should anything happen, both you and they will be covered. That can have an impact on the overall price as well as there are certain risk factors at play.