How Do You Go About Choosing The Right Auto Insurance?

By: Gustavo Mcgee

Well, not all auto insurance policies are created equal, just like many things in life. When choosing a car insurance policy, there are several key factors that you must consider. These include:

Understand your car

Depending on what car you drive, your minimum auto insurance cover will vary. There are many auto insurance agencies that cater to this factor supplying insurance only for the state minimum requirement. While these options are inexpensive by way of monthly premiums, they may not cover a lot in the event of an accident and you may find yourself paying a lot of out of pocket costs to cover for the damages caused by the accident.

If you own an expensive car, you probably should get comprehensive insurance which is costs more than other types of insurance but also covers more. If your car is on its last legs, then good liability insurance is probably right for you. Other cars such as family vans may incur lower costs.

Understand yourself

Certain factors about yourself will dictate the kind of auto insurance you have. The first and most important is how much you can afford. Get a policy that can cover as much as possible without breaking the bank. Skimping on insurance to get lower premiums may come back to haunt you especially when your liability coverage is not enough to compensate the injured party in an accident you caused.

People between the age of 18 and 25 years typically pay more in premiums than those who are older. If you have a clean driving record, your insurance premiums will be also lower than that driver who is considered to be reckless or has been in several automobile accidents and traffic infractions. Also, coverage will be higher if you live in high crime areas versus safer sub urban regions.

Understand policies offered

The three most common insurance policies for motor vehicles include;

When the insurance claims agent inspects your vehicle after it has been involved in an accident, they will determine whether it is salvageable or not. If it can be repaired, then your policy will pay for the repair of these damages. The only caveat is that you must go to a repair shop that is approved by your insurance company.


This policy covers any damage to your vehicle that happens outside of a car accident. The most commonly covered events under this policy are theft, water damage from floods and also fire.


If you are the cause of the accident, you may be liable to pay for damage to the other party. Damages are not only restricted to bodily harm and property but may include legal costs of the other party incurred as a result of the accident.
The events covered vary from agency to agency and it is important that you read the fine print and decide which agency has the right policy for you. When you are involved in an accident, call the police, your family and your insurance agent in that order.

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A Knoxville financial advisor is able to give you further insights on how to decide on your auto insurance. You might also want to visit for more details.

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