Auto insurance has been made mandatory in every state, which is why it’s important to get the policy you need at an affordable price. However, before you start looking for a policy, you should consider several factors like the type of coverage required, the extent of existing loan liability, the vehicle’s existing condition, and so on. All these factors will directly impact the type of policy you purchase and the price you pay for your premiums.

Here are 4 different policy options you can consider before settling on an auto insurance policy:

1. Discounts for Safe Driving and for Being a Good Student

Most insurance companies will offer discounts to drivers who have an impeccable driving record, that is, neither accidents nor infractions nor tickets of any kind. Good student discounts can also be availed, provided the student scores a GPA of at least 3.5 out of a 4.0. While these scores may fluctuate from school to school, the discounts still reflect the students’ hard work in maintaining their grades, implying their responsible outlook towards life resonating with their potentially reliable driving skills. People who have been driving for many years can sign up for an online defensive driving course. Once they complete the course with a passing grade, they too will be eligible for a discount.

2. Multi-car Policies and Bundling Effect

Families with multiple vehicles may earn a discount by insuring all of them under the same policy. It’s also a good idea to opt for bundling your home and auto policies. Combining the multi-car discount with a home and auto bundle reduces the administrative work required to service your policies. Everything is recorded in one convenient location, accompanied by monthly payments to ensure that all of your items are fully covered. Bundling also makes it easier when it comes time to review your policies. All of the information is available right in front of you, making the task fast and simple.

3. PL/PD or Third-Party Liability

PL/PD coverage is the most basic type of auto insurance. It is referred to as third-party liability because it only covers injuries and property damage sustained by the other party. When you choose to purchase this form of liability, you understand that you will not receive any compensation if an accident occurs. The only person or persons who will receive any benefit are those in the other vehicle. Each state has set minimum amounts of coverage that must be met with PL/PD policies. Proof of this insurance must be presented to register and tag your vehicle.

4. Comprehensive Coverage

Comprehensive coverage will take care of a wide range of damages, including theft, collisions, hit and run, and injuries. Most people will drop their coverage from comprehensive to collision insurance as soon as they get their car paid off. While the lien/loan is in place, lenders require the car to be insured under a comprehensive policy that ensures they are compensated if the car is ever damaged or stolen.
These are a few options that you may consider while buying your auto insurance cover. To buy the best auto coverage, contact the experts at The Schwab Agency in Colleyville, Texas. We look forward to getting you covered.

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