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Car insurance works to protect you from financial losses in the event of an auto accident. Not only does car insurance help pay for any accident repairs, or even another vehicle in the case of a total loss, but it also helps pay for property damage and medical bills if anyone gets hurt.
Deciding to switch providers and finding less expensive car insurance premiums can mean big savings over the long term. Sometimes, though, car insurance comparison shopping is beyond frustrating, especially when you’re trying to understand what the different terms mean, find a price that works with your budget, and do a proper search for the best policy that meets your needs.
Here are the top five reasons why car insurance comparison shopping is so frustrating, and what you can do to streamline the process.
It’s Hard to Find Inexpensive Car Insurance
Cost represents one of the most frustrating aspects of car insurance comparison shopping. Some of the biggest factors that influence car insurance costs include:
- The type of car you own
- Your overall driving record
- The amount you drive per year
- Where you live
- Your age
- Your gender
- The type of coverage you want
- Any limits the policy pays toward damages
- Your deductible amount
While some of the above factors are beyond your control, like your age and gender, you can choose your deductible and the amount of property and bodily damage coverage you want, which directly affect your premium.
Car Insurance Comparison Shopping Is Time Consuming
Shopping for car insurance requires you to invest your time in the search process. With a job, family time, and chores and errands, you’re left with little, if any, time to find car insurance.
It’s Hard to Understand Complicated Car Insurance Terms
When car insurance comparison shopping, you might find yourself confused by insurance terms, including what it means to have comprehensive and collision coverage as opposed to only having liability. Check out some of the more common terminology below:
- Bodily injury liability coverage: This pays for the costs of any injuries, lost wages, pain and suffering, and other bodily damage to another person, including drivers, passengers, and pedestrians.
- Collision coverage: This covers your vehicle in the event of an accident involving another vehicle or an object, as well as a rollover.
- Comprehensive coverage: This covers damages to your vehicle in the event of a non-vehicle or non-rollover accident, mainly in the form of adverse weather or theft.
- Covered persons: This refers to anyone covered by the policy, including yourself, your spouse, other individuals living in your home, and individuals driving the covered vehicle with your permission.
- Deductible: This represents the amount you must cover before the insurance company pays anything for the vehicle and other persons or property. Higher deductibles equal lower payments and vice versa.
- Emergency roadside service: This includes any service that helps you when your vehicle breaks down, including a tow truck or a locksmith.
- Premium: This represents the amount you pay your insurance company for coverage. Payments can be made monthly, quarterly, semi-annually, or annually.
- Property damage liability: This covers any damage caused by your vehicle to another individual’s property in an accident.
- Rental reimbursement: This kicks in when your vehicle becomes un-drivable due to an accident and you need to rent a car. Most car insurance companies impose a limit on how much you can spend per day and per accident on a rental vehicle.
- Uninsured or underinsured motorist: This comes into play if the other motorist in an accident does not carry auto insurance or does not carry enough liability insurance.
The Insurance Company Asks for A Lot of Personal Information
When you’re car insurance comparison shopping, companies sometimes ask a lot of questions on your search inquiry form, which you might deem to be an invasion of your privacy. In addition to asking for your name, birth date, address, and email, they also usually ask for your marital status, education level, employment status, and Social Security number.
For married couples, search sites might also ask for your spouse’s information. If you opt for renters or home insurance, many sites also ask for information regarding your residence, as well as any pets you own.
You might be able to avoid a few of these questions by calling an insurance company directly to get a quote.
Insurance Companies Bombard You with Calls Looking for Your Business
Once you enter all of your contact and other information online, prepare yourself for phone calls and emails. Companies will contact you to try to get you to sign up for insurance coverage.
Luckily, you can easily opt out of emails by clicking the “unsubscribe” button at the bottom. And if you aren’t interested in having them contact you again after the first call, just let them know you’d like them to take you off their calling list.