Do You Name Your Own Price?
Is naming your own price for car insurance a good idea? Some companies allow consumers to determine what they want to pay per month for auto insurance — only to find themselves in a bind later on. Sure, wouldn’t it be great to pay $20 a month for physical damage coverage for your brand new BMW?! Unfortunately, saving money now may not save you money in the end. Here are a few tips when shopping for car insurance.
- Looking only at the price is a bad idea. When a prospective customer calls in for an auto quote, we ask them why they’re shopping around. Nine times out of 10, they tell us they’re looking for the cheapest price. Of course as a consumer, I understand. I want the best bargain, too. The cheapest price does not always equate to the type of coverage they need. If you’re driving a brand new car, do you really want to not have coverage for your vehicle? Of course not. What consumers may not understand when naming their own price online is they may end up with inadequate coverage.
- Before you start shopping around online, call your trusted insurance agent. If you don’t have one, ask your friends to refer you to theirs! Insurance agents are licensed. They know the state insurance laws, can explain the different types of coverage and can advise you on choosing a better liability coverage than you would if you called the gecko or Flo.
- Do you know the difference between broad form, regular and limited collision? Michigan auto insurance provides the consumer with three collision options.
BROAD FORM COLLISION: Your insurance pays (less the deductible that you have chosen) if you are more than 50% at fault. If you are 50% or less at fault (you’re rear-ended or side-swiped), your insurance pays and you do not have a deductible.
STANDARD/BASIC/REGULAR COLLISION: Your insurance pays the claim (less the deductible) no matter who is at fault. You are always responsible for the deductible.
LIMITED COLLISION: Your insurance will pay nothing if you are more than 50% at fault. When you are 50% or less at fault, if you have chosen a deductible, your insurance will pay to fix your vehicle (less the deductible).
- Just because the state of Michigan has a state minimum liability requirement, that doesn’t mean you should take it! If you are sued as a result of an auto accident, will $20,000 protect your assets? Not likely. Think of all of the assets you have to protect; your home, retirement, future earnings, 401k, etc. Ideally, your auto insurance liability should be $300,000 and up.
Call us if you have any questions regarding your auto insurance policy! We are always happy to help!
