I am a lucky girl. Throughout high school and college, my parents kept me on their car insurance policy. I was an expensive item to add! I kept the cost as low as possible by earning the good student discount, driving a 14-year-old Subaru, never having a speeding ticket and being born a girl. However, when my fiancé James and I were preparing to get married, one of the financial conversations we had was about the car insurance policy. My parents gave me the title to the car (they owned it) and it became my responsibility, my car … and my turn to get insurance.
I set out to find a policy, and did all of my research online. I soon found out, however, that some of my pre-conceptions turned out to be misconceptions. Here's what I learned along the way.
Where to Start?
I looked online and compared premiums from three difference companies, which I will refer to as Insurance Co. A, which my parents have, as well as Insurance Co. B and Insurance Co. C. My preference was to stick with the familiar — my parents' insurance company – but it turns out it was far beyond my budget.
Here is the quote I was offered:
It was like the story of the Three Little Bears. Insurance Co. A cost too much. My parents have the advantage of bundling their policies (homeowners, etc.) and saving that way, in which case I recommend it. However, I'm not at that place in life where I need anything other than car insurance.
Which Option Is the Best Fit for Me?
The rates offered by Insurance Co. B were affordable but I needed to investigate exactly what I was paying for or missing out on.
I plugged in my price to see what coverage options were available. Insurance Co. B's most highly recommended package cost less than Insurance Co. A's basic option. I didn't feel comfortable enlisting in the most basic option because I don't yet have a fully stocked emergency fund in case of a serious accident. So I compared the mid-range option at Insurance Co. B with what I could get from Insurance Co. C.
I was impressed. The premium Insurance Co. C package offered more and cost less than the equivalent from Insurance Co. B. The same was true of the mid-range package. Continuing my research, I called upon several important sources: my mom, Google, and the Insurance Co. agent (in that order). I needed to clear up some confusing lingo I was experiencing and get an opinion. I'm generally skeptical, and believe that if a deal sounds too good to be true, it probably is.
What Does a Comprehensive Deductible Cover?
I asked my mom (and Google) about the comprehensive coverage. Basically, that means the non-accident damage that will be covered. Hail and flood damage are some examples.