“Best Auto Insurance” Means Different Things To Different People
To some, it will simply mean insurance with the lowest premium. To others, it will mean insurance with a nearby office, possibly with an agent who is a good friend.
Others might consider insurance “best” if it includes special coverages such as Mexican or Canadian coverage at no apparent additional charge.
Generally, the best auto insurance doesn’t stand head-and-shoulders above other policies. Instead, it is considered marginally better by the rater. And their opinions will vary, as mentioned above.
How Does Best Auto Insurance Work?
When researching car insurance, remember the reason for insurance: to protect the policy holder from financial ruin or hardship due to an accident or other disaster. Basically, the insurance industry arranges for a pool of money from which policy holders can be paid if they suffer losses.
The pool is created by many, many, people paying modest premiums. On the other hand, only a relatively small number of people are paid claims. The premiums, plus earnings from the premiums, we all pay must be sufficient to pay the claims and the administrative costs. That’s the basis of insurance, regardless of type.
The best auto insurance could be considered insurance which is managed best. The result would be that good management allowed low premiums and still was able to provide great service.
Which Auto Insurance Is Best For You
If you want the best auto insurance, consider these things:
Limits of coverage
First, make sure the limits meet or exceed any required limits the state in which you live requires.
Second, make sure the limits adequately cover potential loses which you could not personally withstand. But don’t make the limits larger than reasonable as that will increase the premium.
What is covered
The best auto insurance covers only what you need to have covered, nothing more and nothing less.
Liability coverage is at the top of the list, as it is required by law most places.
Collision coverage is usually included, too. It pays for fixing your car in the event of damage. If the car is of low value, the premium may be more than the car is worth. In such a case, don’t include collision insurance in your coverage.
Uninsured motorist coverage covers you in the event the other driver in an accident has no insurance, even though it might be required.
Towing, rental car, and living expenses are additional coverages which can be included, at an increase in premium.
The best auto insurance for you is that which gives adequate coverage at the lowest price, provided the company’s customer service is acceptable.
In addition to the points above, consider the customer service you could expect from the policy you are considering. The best auto insurance can not have horrible customer service! If it did, it would certainly not be the best!
The best auto insurance for you is insurance which meets your financial needs at an acceptable price and provides great customer service when needed.