What to Look for in a Good Car Insurance Plan

What to Look for in a Good Car Insurance Plan

By Ursula Nizalowski

For every car that is purchased, an insurance plan is offered. That way, the driver gets financial
compensation if their car gets damaged or stolen. Insurance plans can also cover medical
expenses in the aftermath of an accident and towing services if needed. However, not all
insurance plans offer every single one of these things. So one has to look at the insurance plan
carefully in order to determine if it’s good for them. Here are the factors to keep in mind when
looking for a fitting car insurance plan as well as the pros and cons of picking an insurance plan
online versus through a local agent.

Factors to Consider

1) Coverage – This is what the insurance company will take care of financially in the
aftermath of a terrible incident involving one’s car. Some examples of coverage include:
collision, which pays for repairs to one’s car after an accident, liability, which covers the medical
expenses and repairs for the other driver, and comprehensive coverage that pays for car repairs
after a non-accident like severe weather or a burglary. Now these particular types of coverage
may be offered either in a full auto insurance package that varies by state according to
Investopedia, or partially depending on what the insurance company has available.
2) Rates/Quotes – Sadly, car insurance rates have increased in the past few years due
to a number of factors such as the lingering effects of the COVID-19 Pandemic, “inflation,
supply shortages, climate change and reinsurance rates” says NerdWallet. But that doesn’t mean
it’s impossible to find a decent insurance rate. For instance, when an insurance company gives a
quote, it is the estimated price of the insurance based on one’s personal information which helps
determine whether the driver can afford the insurance plan or not.

3) Financial Stability of Company – This may not seem relevant, but it actually
does matter if the company one plans to buy car insurance from has stable finances. Because the
financial strength of the company indicates their ability to pay claims related to car damage and
such. In other words, an insurance company that isn’t financially stable won’t be able to fully
cover the damages done to one’s car.
4) Ease of Obtaining Information – A car insurance plan might seem good on
paper, but there might be some hidden fees or elements to the plan that the driver isn’t aware of.
So a good insurance company will provide the necessary information of a plan, or at least a
convenient way to obtain the information before the driver makes their purchase. It not only
builds trust with the insurance company but also helps the driver make a more informed decision
about their car insurance.

Car Insurance from an Online Source

Pros – With how busy our lives are, we may not have a lot of time to spare for figuring
out a good insurance plan for our car. Thus, searching for car insurance plans online makes it
easy as we can just compare plan prices side-by-side and purchase a plan whenever we want.
And Insurance Business America magazine claims “Some insurers offer discounts for those who
buy auto policies online,” meaning one might actually save money buying a car insurance plan
online as opposed to in-person.
Cons – As convenient as purchasing a car insurance plan online is, there’s some
downsides as well. For instance, one might get overwhelmed trying to compare plan prices and
quotes online if they aren’t sure about the plan they’re looking for. There are also some insurers

that require one to talk to an agent first before finalizing their chosen plan, and so it makes doing
the whole process online seem somewhat pointless.

Car Insurance from a Local Agent

Pros – Compared to the average person, a car insurance agent is more knowledgeable
about insurance plans and all the minute aspects of them that the average person may not notice.
And so when working with a local agent, they can actually inform the driver on what they’re
getting into before purchasing the plan. Then after the plan is bought, the agent can “further
assist with policy updates, modifications, and renewals” says Clearsurance allowing the driver to
stay on top of their plan without getting caught off-guard by some change they didn’t expect.
Cons – For as much as car insurance agents know, they also have to make a living. So
some might try to persuade a driver to buy a more expensive insurance plan than they need to get
a higher sale on a commission compared to a less expensive plan. Also car insurance agents are
very loyal to their company which might prevent them from comparing insurance plans from
other companies for the driver, or help them switch companies if they’re not satisfied.

For further questions on how to figure out the best car insurance plan, feel free to contact attorney Rick Wagner.