Five steps to consider when buying auto insurance.

Getting the “Right insurance at the Right price” is not always easy. Here are five basic steps to help you make the right buying choice for auto insurance:

1). Assess your financial status. Auto insurance protects much more than your car from a theft or accident, more importantly it protects you and your assets from lawsuits. If you are in a serious accident and you don’t have enough coverage, your wages can be garnished and your home and other assets could be at risk. Thus, in general, the more you earn and own, the higher the coverage limits you should consider.

2). Learn about the coverages and limits available. Currently the mandatory minimum liability limits in Massachusetts are $20,000/$40,000 (per person/per accident). Put simply, these limits are grossly inadequate and outdated, having been established by state law more than 20 years ago. That’s why for most of our insureds we recommend protecting themselves with a minimum liability limit of $100,000/$300,000. But we do understand that each of our customers has a unique financial status, and therefore some may want less coverage than we recommended. That’s fine with us. Ultimately our goal is to make sure you aware of your options and that we offer our professional opinion.

3). Think about the coverage you don’t need. You can save lots of money by going with higher deductibles for your Collision & Comprehensive coverages, or opting to not cover for those coverages at all. So, when considering these coverages think about the age and market value of your car, as well as what you can afford to lose out-of-pocket in the event of a loss.

4). Know the discounts available. There are many types of discounts out there, and they can vary from company to company. That’s why it is always a good idea to ask your agent the question, “Am I getting all of the discounts available to me?”. A good insurance agent will share the entire list of discounts with you to see what you might be eligible for.

5). Shop and shop more. All insurance companies use their own propriatery rating and underwriting factors to determine the price they ulimately charge you. Thus, the price you pay can vary greatly depending on factors such as where you live, the car you drive, your driving record, to where you insure your home/condo/apartment, and so on. Therefore, it makes a whole bunch of sense to get insurance quotes from several different insurance companies.

Kiley & O’Toole Insurance, Inc. is an independent insurance agent that represents several insurance companies, and therefore we can offer our customers multiple quotes and choices.