Shopping around for auto insurance allows you to find many prices for similar policies. But just HOW similar is the important question – so be sure to ask it. The seemingly smallest details in a policy can mean the difference between “No worries. That’s covered.” And “Oh, sorry…”.
So while comparison shopping might be a great way to ensure that you are not overpaying or are underinsured – comparing apples to apples (and knowing about any and all little differences) is extremely important BEFORE you decide on a policy that is right for you.

When considering an auto insurance policy you want to get the best coverage for the least possible price. That’s just common sense. But beware of ‘price creep’ when being quoted. Make sure all agents vying for your business have the exact same information – up-front. Seemingly minor details can cause big changes such as… The cost may be determined by how many drivers you want to insure, their ages and also the number of vehicles. Each company you contact will take into consideration if there have been any accidents or claims against your driving record when quoting a price for coverage.

Another thing to consider when comparing insurance policies is where you live (due to rates of auto theft, hazardous driving instances per capita, etc.). So if you get quotes over the phone from national vendors be sure they have your zip code early in the conversation.

There are many factors to consider when comparing auto insurance policies. By doing this you will be getting the best coverage you need for each driver and vehicle that you want to insure.

Most drivers throughout the United States obtain car insurance because it is required in their state, but few people actually take time to review the features of their policy. Unfortunately, many of these people do not realize that they have the wrong insurance until their claim is denied. Having the right auto insurance will not only keep you legal behind the wheel, but it will also protect you financially. Providing the level of expertise that helps guide you through buying not only the “best rate” policy but also the “best for your needs” policy is what you should expect – and demand – from your agent.

Investing in the right car insurance means more than simply having coverage from a trusted provider. Every driver has different needs and, in order to ensure you have the right protection, you should take time to consider your needs before you invest in a policy. In other words, the right auto insurance for your needs may not be the best option for the driver in the next lane.

For example, if you have a brand new luxury car, you will probably want to invest in the most extensive plan on the market. On the other hand, if you drive what you refer to as “an old beater” that you plan to replace in the near future anyway, you may only want the lowest form of protection required in your state. But is that really the right decision for either scenario? This is where working with the right agent can make all the difference. Of course, some things are already decided for you, like if you are financing your vehicle, you will usually have to purchase the auto insurance required by your lender.

Liability insurance is generally the lowest form of coverage you can obtain and still drive legally in your state. This type of plan generally covers all property damage and medical bills for victims involved in an accident you caused, but does not cover any of your own property damage or medical bills. In order to protect your own property, you will want to invest in collision coverage or comprehensive insurance. Carefully examine each policy type in order to find the right auto insurance for your needs.

We recently published a blog post about compulsory insurance coverage, and got some great feedback and the recommendation that we better spell out the risks associated with opting for minimal insurance coverage. Well, here we go…

Here is the big question: “If compulsory is all that’s required for my car, why should I spend more? Doesn’t my state government know what’s best?”

I can’t say whether or not your particular state government knows what’s best, but I can say that some states may not even require auto insurance. New Hampshire, for example, did not legally require auto insurance for its drivers when I lived in the state next door, and it was a mess whenever an uninsured driver from that state visited mine and had an accident (because, of course, the driver is still financially responsible).

My point here is that some states have very different views on auto insurance requirements than others. Laws can be complicated, and some date back so far that they no longer make sense to many people. So with all this said, I always opt for good insurance over minimal.

Another question worth mentioning was “I am in the same business as my friend in another state, but she pays only 80% of what I pay for business insurance. Why do I have to pay more?”
Without knowing the two states in question I cannot answer this question with great specifics – but I can tell you that you the policies could be very different with regard to coverage. While your friend is saving some money each month, you need to ask yourself what is he or she getting for that savings. If his/her business had a problem – and you had the same one – who would be better protected and is that worth the price of the added monthly cost?

Insurance bundles are different than what most people think of when considering “bundled goods.” In fact some popular TV commercials tend to perpetuate the myth in their warehouse shopping setting.

Here’s what I mean:

Have you ever shopped at one of those warehouse super-savings stores? You know the ones, where you buy ten tubes of toothpaste in one shot. You’ve got enough toothpaste to last a year and you got in at a big discount by taking advantage of bundled purchasing. Congratulations!

But insurance is not some sundry item that you can stockpile in the pantry. You need to choose your insurance bundles wisely and avoid any fluff that some agents tend to throw in.

While it’s true that you can save a good deal of money with an insurance package bundle, it is not because you are saving on stocking and shipping fees, or allowing some warehouse to order in 10X quantities to get their own discount. You save on insurance because it reduces administrative fees and the marketing costs it would otherwise cost the insurance provider to sell that same policy as a “one-off” to a new client. It may also be a type of loyalty reward. In any event, it’s important to know that while you might be able to get the same toothpaste at 50 locations in your area, the same is not true of insurance. So while the discount warehouse analogy is cute and easy to understand, remember that you can save a great deal of money with insurance bundles, such as auto, home and life, but each package should be custom assembled to meet your exact needs.

Sometimes the trickiest part of auto insurance is figuring out what you need, what you’re paying for, or what is going to cover what. So for the sake of simplicity, here are a few common types of auto insurance and what the terms mean.

Liability. If you’re in an accident with another vehicle and you’re at fault, you’re liable (that is, you’re responsible) for the damage to the other person’s property or body. These damages are covered by the liability portion of your policy, up to the maximum amount on your policy. In Virginia and North Carolina, as well as most other states, liability insurance is the required minimum coverage.

Collision. Let’s say your foot slips off the brake as you’re headed into the drive-thru for a quick burger, and you run into the speaker box as you’re trying to order. Collision covers you here. Basically, collision insurance covers you against collisions with anything other than automobiles.

Comprehensive. In the event a branch falls from a tree and smashes your windshield, or a freak hail storm materializes out of nowhere and golf ball sized chunks of ice pummel your hood, comprehensive insurance will cover the damage. Generally, comprehensive covers damage to your automobile that doesn’t occur while you’re driving it, and also covers such things as theft and vandalism.

Full Coverage. This term is used to describe coverage that includes all three above: liability, collision, and comprehensive.

If you’re in Virginia or North Carolina and you’re not sure what type of coverage you need, or if you have enough insurance, get in touch with us at Insurance Doctor. We’ll be happy to walk you through the policies we have available and help you find the one that fits you best.