In the excitement of searching for and negotiating a deal on that dream car, some drivers may not be thinking about auto insurance. The type of vehicle can certainly have an impact on how much the premium payments could be. Before starting the search for a new or used car or truck, doing a bit of homework first can help determine what coverage is needed and which policy is the most affordable.

3 Tips for Researching Auto Insurance

1. Know What Coverage Is Required

In most states, liability coverage is required. This type of policy pays for damages sustained by other drivers that were caused by you. The auto insurance plan also covers medical expenses of any injured parties. If you're financing a vehicle, many lenders will require borrowers to have collision and comprehensive coverage. Collision insurance pays for damage if your vehicle is hit by another vehicle, while comprehensive picks up the tab for damages caused by natural disasters such as a fallen tree limb.

2. Track Data on a Preferred Vehicle

There are certain vehicles that have a pattern of being involved in more accidents and thus, coverage costs may be higher. Others have a historical track record of having more claims filed on them. If you have a few makes and models in mind, you can research their insurance rating records by checking data from the Insurance Institute for Highway Safety. This information will help you determine if the vehicle you have in mind could result in higher premium payments.

3. Consider Gap Insurance

Unfortunately, vehicles are involved in accidents shortly after being purchased. In some cases, the car or truck is completely totaled but the driver is still responsible for paying off the balance owed. This is where gap insurance comes in. The policy pays the difference between the vehicle’s value when it was totaled and the amount still owed on it. If you’re planning to lease, most dealers require gap insurance.

Securing a reliable vehicle makes it possible to get to work, school, and around town. If you’re in the market, let Farmers Insurance: Daniel Oliver in Edina, MN, provide you with budget-friendly auto insurance designed for your unique driving needs. To get started, call (952) 925-4454 to discuss policy options and receive car insurance quotes. You can also request a rate online, where you will find additional information on coverage choices.