The Questions You Need to Ask About Your Car Insurance

Have you ever wondered what, exactly, makes buying car insurance so hard? It's not that there's a lack of options. There are over 50 car insurance companies doing business nationwide. It's not that you don't know what you want. It's that you don't know what you need and what you don't, and until you do you're not going to be able to guarantee you're making the right decisions about your coverage.

The trick is to make sure you're asking the right questions.
Frequently Asked Question

1) How much liability coverage do I need? This is probably the most confusing point for most car insurance shoppers because they're required to have a certain amount of coverage. That means that not only do you have to make sure that your policy is on par with your state's requirements, you also have to make sure you have enough liability coverage to pick up the pieces if you find yourself caught in the middle of a ten car pile-up on the Interstate!

You are of course welcome to choose your own liability limits, but most experts recommend that you carry a minimum of $100,000 per person and $300,000 per accident in bodily injury liability and $100,000 in property damage liability just to make sure you're ready for whatever happens to roll your way.

2) How do I save money on car insurance? You might be surprised by how easy it is to save 10% or more on your insurance premiums. When was the last time you sat down to make sure you were getting all the discounts you were entitled to? Ask your agent. Seatbelts, air bags and a good driving record will go a long way toward helping you save big on your coverage.

3) What does my comprehensive and collision cover? Ahhhhh, this, my friends, is an excellent question. Many people buy comprehensive and collision without really understanding what they do. When you get into an accident and you have standard liability coverage you're going to be covered for the damages you do to everyone but yourself. That means if your car needs to be fixed (or if you toasted your bumper running into a street sign and there's no one to blame) you're stuck holding the bill. And no one's going to pick up the tab if you get hit by a deer.
Unless you have collision or comprehensive car insurance, of course. It's always good to read through and find out exactly what's included in your policy so there's no question when the time comes to pay your car insurance claims.

4) Should I max out my deductibles? Car insurance deductibles are a tricky business. On the one hand, raising your deductible almost automatically equals a reduction in your car insurance rates. On the other hand, raising your deductibles also raises the amount of money you're going to have to pay if you're ever actually in an accident. Talk to your agent to see how much you'll save by raising your deductibles before you actually do it. Sometimes it's just not worth the fuss.