How to Buy Car Insurance 101

“Yes, is this the insurance agency? I need car insurance. The cheapest you have!” For many people, the monthly premium is the most important factor in choosing car insurance. They may try to pay attention to having “good coverage,” but often are not sure what that means, and end up paying the most attention to what is most straight-forward: the monthly cost.

While one should absolutely search out a fair price, there are other important items to also consider when shopping for car insurance. Here are a few of the most important matters:

  • Premium — what you pay each month
  • Problem solver — when there’s a problem with your insurance, who is going to solve that problem? Will there be an additional fee? Will they be accessible?
  • Ease of solving problems — some insurance companies are easier to work with than others
  • Claims service — when you have an incident, will you receive a quick response and fair treatment?
  • Coverage — this is complex, so we’ll cover this more in later posts
  • Stability — over time, how stable will your premium pricing and service remain?

In the next post, we’ll begin to delve into the details of each of these items, so you can determine how to prioritize these factors for yourself. In the meantime, let me leave you with this thought: Before purchasing car insurance, ask the insurance agent about all six of the items listed above, not just the monthly premium.

James Dick, CPCU, AAI

James Dick, CPCU, AAI

Sales Manager
Schenectady, NY

(877) MERRIAM x 219
(877) 637-7426 x 219