How to Find the Best Auto Insurance for Your Needs

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Everyone needs auto insurance, but not every policy works the same. Insurance is a lot more personalized than many realize. Just because one person needs an insurance policy that takes into account a lot of traveling doesn’t mean the remote worker who only goes to the store a couple of times a week needs the same thing.

Similarly, a business that owns a fleet of vans or trucks will need another type of auto insurance altogether.

If you don’t carefully evaluate what you need and what you can skip, you might find that you are paying for a lot more coverage than you should. This can get overly expensive and unnecessary.

Using an auto insurance calculator is one of the ways to overcome this. You can put in all your personal information, and the calculator will give you the best estimates for your situation.  We’ll discuss some of the other ways you can find the best auto insurance for your needs, like taking into account your job and the size of your family.

Do You Have a Long Commute?

You need to look at how often you drive when you are looking for an auto insurance policy. If you’re someone who drives a 50-mile round trip every day to get to the office, you might need a comprehensive insurance policy. You’re at greater risk of getting into an accident by going to your job every day.

Buying a comprehensive policy may increase your insurance rates, but it’s worth the extra cash spent. Besides, if you have a clean driving record, this can get you discounts that otherwise would be unavailable.

Moreover, if, as someone who spends hours a week on the road you only get the basic coverage, you’re risking your ability to cover a car accident in full.

Do You Work from Home?

One of the many advantages of being a freelance worker is the luxury of working from home. This means you aren’t risking your life by driving around so much. Insurance companies will get to see that you are barely on the road. Make sure you let them know this information so you are not overspending on a policy better fit for an on-site worker.

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The same thing applies if you run a small business and go on business trips. Or perhaps you use public transportation quite often. This would be another opportunity for you to get discounts on your auto insurance.

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If you live in a state with pay-per-mile or usage-based insurance policies, these types of insurance can help people who only drive once in a while to save more money. For example, if you only drive your car for errands or occasional entertainment, you shouldn’t be paying as much for auto insurance.

Many auto insurance companies will view you the same way they would a remote worker. Companies like Metromile and Progressive have some of the best usage-based insurance in the industry. It’s all about the number of miles driven in a month. Take this number seriously.

Are You Adding Kids to Your Policy?

Having a teen driver is another stress that gets added to most parents’ financial situations. Adding a new driver to an existing auto insurance policy is going to increase the price by quite a bit. In particular, 16-year-olds are risky customers. They are inexperienced drivers and get into more accidents than older drivers.

But bundling your kids, yourself, and your spouse onto the same policy is quite simple. Many insurance companies give discounts to those who put many people together. Family deals are usually cheaper than individual ones, with savings up to 25% on average.

Kids can help out, too. Good grade discounts are one way that insurance companies reward young drivers who show they are responsible and mature. Kids should keep a clean driving record from the second they get their license. Building a good reputation from the start will give them an opportunity to go through adult life with better auto insurance rates.

If you are buying a new or used car for your child, make sure you check what the rates will be for the vehicle. Newer cars often are more expensive to insure than older ones. And if you buy a sports car for yourself or your child, the rates will really go up.

Does Owning a Sports Car Change Your Auto Insurance Needs?

Sports cars are more expensive to insure because the parts are often very pricey to replace. They are also more likely to be driven by people who want to go faster on the road. Speeding leads to more accidents and more insurance claims.

If you need a sports car, try to find one with good safety features on it. These additions will show your insurance company that you care about staying alive on the road.

Don’t buy a sports car until you are older and have the money to pay for it. At this point in life, you will also be financially stable enough to handle sports car insurance. If you cheap out on insurance for your Corvette or Mustang, you’ll pay tremendous amounts of your own money to fix the vehicle.

Talk Your Needs over with Your Agent

You need to talk through your options with an agent thoroughly, no matter what insurance company you go through. Your agent is the bridge between the company and you. They will be able to help you with your auto insurance needs and guide you through the process.

You also need to decide whether you need a large company or a small, local insurance business to represent you. Big companies often have more people available to talk to you at any given time. They will also have a wide range of policies to fit your needs.

Small insurance companies may have more specialized policies, though. If you own an unusual vehicle, perhaps talking with a small insurance company about your options is better. They will have the time to dedicate themselves to your specific needs.

Shop Around to Find the Best Auto Insurance for Your Needs

As you can see, there is a lot that goes into finding the right insurance company. You need to consider your vehicle, your work and family situations, and how often you drive.

There is always a way to find a better policy. Shop around and consider all your options before you settle. Learning about how insurance works is the key to saving the most money for you and your family.

About the Author

Shawn Laib writes and researches for the auto insurance site BuyAutoInsurance.com. He wants to help explain the details of the insurance industry to people so they can get the best rates.

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