There are a few essentials first time car insurance buyers should keep in mind when searching for an insurance agent and coverage.

A buyer, unless well-versed in auto insurance, should have an agent or broker explain the complexities of an auto insurance policy. They can offer real life examples, which are a great way to put coverage into context. Too, agents and brokers are also educated on regulations from state to state, and can help address any questions you may have if it’s your first time purchasing in a particular state.

What type of coverages should be placed on the vehicle?

Obviously liability, but what limits? What is the value of vehicle and does it warrant comprehensive and collision coverage? Comprehensive coverage typically helps cover theft and damage from vandalism and natural disasters, falling objects, fire, hail, flood or animals. But what if you are involved in a hit and run and do not carry collision? Bodily Injury Liability covers medical expense and lost wages to the other party. Property Damage liability repairs or replaces the other parties’ vehicle(s) also e.g., houses, offices, stores, trees, fences, lamp posts, telephone poles, etc., but does not cover damage to your vehicle.  

You should also determine if you’ll need rental or transportation expense coverage if your car goes in the shop after a covered claim. If you don’t have access to another car or would prefer not to rely on public transportation, your policy will need to cover these potential extra costs. Another important question is if you’ll need roadside assistance or towing and labor? Do you have AAA or similar service, or will you turn to your auto insurance to cover this?

What are the types of coverage that shouldn’t be ignored, even if they add some extra cost?

• Towing and labor

• Rental reimbursement

• Uninsured motorist property damage. (If no collision coverage purchased on your vehicle.)

• Guaranteed replacement cost on new vehicles in first 2 years

• Gap/Loan coverage if loaned or leased

• Umbrella Excess Liability

Are there any clear advantages and/or disadvantages with purchasing insurance from a local provider over a big name like State Farm, Nationwide, etc.?

The biggest advantage of working with an independent insurance agent is the service experience at claim time. A local agency may offer in-house claims or concierge services. You’re also working with someone locally that has a regional carrier with local adjustors.

Independent agencies work with various insurance companies to quote different options at different rates. So, even though you’re working with ABC Independent Insurance Agency, you may still have insurance through Nationwide, but you’re also gaining that personalized, local service experience through your independent agent.

How accurate are online quoting tools, and how much should consumers trust the quotes they get from provider websites, and also 3rd party insurance comparison sites?

Using online or third parties for quotes may give you a ballpark number but where they can lack is if you don’t provide full information. For example, if you enter your age, type of car, etc. but don’t enter any violations, claims or your credit score – these can all greatly impact a quote. Without offering complete information, you could get a quote of $650 when in fact, you had a past claim that would bump up the actual number to $1,000. If you’re able to provide comprehensive information, then these tools can be helpful, but otherwise, they’re not giving you an accurate number.

Questions about purchasing auto insurance? Contact Wallace & Turner at (937) 324-8492 or info@wtins.com.