Purchasing a vehicle is a significant financial decision, making it crucial to have the right insurance to safeguard it.

And with so many options available, you’ll want to ask these questions to any prospective provider before finalizing a policy so you can be sure you have the right coverage in place.

What coverage do I need?

A potential insurer will look at your vehicle’s make, model, and year to assess its value and help determine the level of coverage you should get. At minimum, you’ll need liability coverage, which is mandatory in most states, to help cover the costs of accident-related injuries, vehicle damage, property damage, and legal fees. Additional coverage types such as comprehensive, collision, and uninsured and underinsured motorist protection can provide extra security, but it depends on your specific situation. Talk with an insurance agent about their available options and whether you need extra coverage to protect you in the future.

Am I eligible for any discounts?

Many insurance companies offer a variety of discounts that may significantly reduce your premium, but you won’t necessarily get them automatically. Instead, you’ll need to ask about the discounts available, which may include ones for military personnel and veterans, good students, paperless billing, and having safety features in your vehicle. These can lead to big savings on your total insurance costs.

How does my driving record affect my premium?

Your driving history can significantly impact how much you pay for insurance. Your insurer will conduct a risk assessment, which considers factors such as your age, driving record, criminal history, and credit score, to decide how much of a risk you are to insure. The higher this risk is, the higher your premium will be, and vice versa.

Regardless of the quote you get, though, it may be worth it to further inquire about how any past traffic violations, accidents, or claims are impacting it; some insurers offer forgiveness programs or discounts for safe driving records after a certain period of time. Understanding how your history affects your premium can help you manage your expectations and explore potential savings.

What’s my deductible?

Your deductible, or the amount you’d pay out of pocket for an incident before your insurance coverage kicks in, affects your total premium. Generally speaking, a higher deductible results in a lower premium but also means you’ll have to pay more in the event of a claim. Work with an insurance agent to find a balance that suits your budget and risk tolerance.

Who does my policy cover?

If you have a spouse, child, or friend who may drive your car in the future, it’s important to understand whether or not your insurance policy would cover them. This will ultimately depend on the specifics of your situation and policy, so discuss your available options with potential providers. If someone else frequently drives your car, they may suggest adding that person to your policy as an insured driver. Doing so may increase your premium, but it could be worth it to ensure they’re covered should an accident occur.

What’s the claim process like?

Before selecting an insurance policy, make sure you know what to expect when filing a claim. Ask about the process, including the steps for reporting the incident, the required documentation, the estimated time frame for resolution, and if they offer a 24/7 claims service. By understanding these details up front, you can save yourself some stress down the road in the event you need to file one in the future.

Before committing to a policy, it’s important to ask the right questions so you can make a well-informed decision that aligns with your budget and specific needs. Reach out to a provider for answers to these and other important insurance questions.