Car Insurance Policy
To drive a car legally, all drivers are required to have some form of car insurance. When shopping for auto insurance, drivers will find that there are dozens of different brokers and insurance providers to choose from, each of which may be offering you a different type of policy and cost structure. To ensure you are able to choose the best policy for you, there are several factors that need to be considered when you are picking a car insurance policy.
One factor to consider is what the minimum requirements in your state are. Every state in the country has a different set of minimum insurance requirements, which can include levels of coverage, types of coverage, and additional medical insurance coverage. Before choosing any policy, it is important that you understand your state requirements to ensure you are able to comply.
Lender and Lessor Requirements
When getting a new or used car, you may also be required to follow rules that are set forth by your lender or lessor. In many cases, these insurance requirements will be more stringent than the state requirements as they will often require you to have a full comprehensive policy as well. Many lenders and lessors will ask you to provide evidence of your insurance policy on an annual basis.
The fourth factor that you need to consider is what type of deductible you want to have on your policy. The deductible is the amount of money that you will need to come out of pocket when filing any claim. In many cases, the difference between a high and low deductible can make a big difference in your monthly payment requirements. If you do choose to pick a more affordable car insurance policy with a high deductible, it would be a good idea to keep the amount of your deductible in a readily available bank account.