It's your first taste of teenaged independence; getting your driver’s license and, if you’re extra lucky, your very own vehicle. It's such an anticipated event that even as adults, we can still remember being handed the keys. The nostalgic memories of that first joyride compare to nothing, but boy were we clueless about the amount of responsibility that laid ahead. Case in point, insurance. It's something everyone is legally required to have, but most of us go with the best deal we can quickly get and never give it a second thought. This is not only risky in terms of coverage, but it can end up costing you a lot of money. Before you go in search of automotive insurance, or even if you already have it, there are five things you need to know:
1. Multiple Factors Determine Your Rate
When talking auto insurance rates, people are generally under the impression that vehicle type, age and driving record are the only determining factors. Although they are important, they are far from the only areas insurance companies investigate. Gender, marital status, credit history, annual mileage usage and location can all play a role in making the decision. Insurance companies tend to give cheaper rates to people with clean driving records and high credit scores. It's also a bonus if they're over the age of 25, female and live in a rural area. Why is this? Insurance is all about risk, so those that pose less risk to them get cheaper rates. Companies go to great lengths to keep their own risk levels low, but who’s looking out for your risks? Let an experienced agency like Wiedemann take the wheel.
2. It Pays to Shop Around
Obtaining automotive insurance should not be something that's done on a whim. Going with the most convenient or cheapest policy can end up costing you big bucks, especially in the event of a claim. We recommend getting quotes from three different companies, then doing a full policy comparison before signing on the dotted line. This may sound time-consuming, but that's why we’re here to help.We are an independent agency, which means we represent multiple companies and can give you the quotes you need. You don't have to spend your whole day on the phone; with one quick phone call, we can assess your needs and provide you with the best policy at the best price. We will also review your rates annually, so you can rest assured you're getting a great deal year-to-year.
3. Your State’s Legal Requirements
Each state has their own requirements and they vary across the board. It's important to know what your legal requirements are so you can make sure you're getting the proper amount of coverage. If not, you could end up having to pay a hefty fine in the event of a claim, or even worse, risk losing your license. Avoid these situations by doing your research or giving us a call. A few minutes on the phone with us could save you a lot of future trouble.
4. Classic Automobiles Require Special Coverage
As a whole, our society has a great love for automobiles, but there's an even deeper love for classic cars, antiques, collectors items and the like. Any vehicle falling under these classifications is undoubtedly worth some money; that's why you want to make sure it's properly insured. Adding a classic vehicle to an existing standard policy is dangerous because it does not provide the coverage needed for an antique vehicle. A standard policy is issued based on the vehicle’s value depreciating over time, while a classic car policy counts on the vehicle’s value appreciating over time. If you have to file a claim, this difference has the potential to either save you or cost you a ton of money. Just imagine if your ‘70 Chevelle SS was damaged, but your insurance policy only covered a depreciated value to repair or replace it; that means you’d have to dig deep into your pockets to make up the difference. Steer clear of this risky mistake by making sure your classic vehicle is fully protected.
5. The Difference Between Liability and Full Coverage
Most states require a minimum of liability coverage on all vehicles and, since liability is generally cheaper than full coverage, most people don't complain. Although saving money is always appealing, cheaper is not always better. In fact, it rarely is. Liability coverage is intended to protect other drivers from you. Yes, you read that right. Let's say you rear-end somebody at a stop sign, liability will cover repairs for the their car, not yours. So then you have to pay for any repairs to your car fully out of pocket. Yikes. Full coverage is generally a better policy because it covers both vehicles in the event of a claim (subject to policy provisions). You can potentially save yourself a substantial amount of money and gain great peace of mind by paying a little more each month for full coverage. Each situation is different and needs vary, so we recommend seeking a professional for help.
At Wiedemann Insurance Agency, we've been helping people get covered since 1980. We have the knowledge and experience necessary to give you the best policy at the best price, plus the peace of mind knowing you're covered for years to come. Contact us today to get started or check out our website for more information.