Auto Insurance

When we typically think of insurance, auto insurance is the first type that springs to mind. Yet, here’s a fun fact that will be a definite hit at any social gathering. Benjamin Franklin was the recognized insurance forefather in the U.S. He formed the Philadelphia Contributionship in 1751, a company the colonies called upon to provide fire insurance. All members paid monthly payments and the payout would be used when a member fell victim to a fire-related loss. The contributionship issued 143 policies (each lasting 7 years) and during that time not one property caught on fire.

Car insurance was not in the picture quite yet, but crop and life insurance were, and regardless of the policy, the goal of all insurance is the same – ease the financial burden one takes on when a disaster hits. Today, auto insurance plays a vital role in protecting us from financial losses that something like an auto accident could surely cause. Medical bills, property damage, legal fees, lost income, it’s a nightmare to ponder which is way insurance in many ways lets us sleep better and live a more stress-free existence.

When shopping for auto insurance, the first step is figuring out your state’s minimum coverage requirements. Coverage is broken down into four main parts – property damage, bodily injury, personal injury and uninsured/underinsured motorist protection. Most states only focus on property damage and bodily injury but do look into this. Being underinsured in a state that is more rigid than others is not a great path to set out on. Second, you’ll want to compare at least three different policies before deciding. Be sure to check national and local companies as you’d be surprised how many regional players have exemplary customer service scores compared to the well-known big dogs.

Auto insurance is a cost, so you’ll want a plan that works for you, financially speaking. The premium payment is the first thing to consider. A low premium (the amount you will pay monthly) is nice, but nothing is free. A low premium comes with a high deductible, the amount you’ll pay if you file a claim. If you are a generally safe driver and are not consistently in high-traffic areas, a high-deductible policy is likely best. But once a claim happens, you will either pay for it in higher monthly payments previously or the cost of the repairs and injuries at the time. There’s no escaping that!

Next, don’t be afraid to ask for discounts. Be upfront, yet polite, and explain that you’re shopping around, and a discount might sway your decision. Common discounts in the insurance game are deals for members of professional organizations, bundle prices for joining multiple policies (auto, home, etc) under one provider, multi-car discounts, incentives to go paperless. There is an endless slew of discounts and insurance companies won’t mention them unless they need to sway you. Here is where you can do their job for them!

Thankfully shopping for auto insurance is not as painful as it used to be. An ever-growing sector, but one providing the utmost piece of mind. Protect yourself today!