Shopping for Audi Insurance
Looking for Audi Insurance? Shopping for the right Audi insurance is just as important as shopping for the right car. Not all insurance plans are created equal. Without comparison shopping, you could wind up spending hundreds or thousands of dollars in unnecessary insurance costs.Why is insurance important to consider before purchasing a car?
Insurance is just as essential as the tires on your carWhen shopping for your Audi, you would not consider a frame with out wheels would you? It is just as bad to shop for a car without shopping for your insurance. Therefore, although insurance is something that many consumers overlook when leasing a car, it is something that you, the educated consumer, NEED to consider!
Not all insurance plans are created equal
Different insurance companies target particular types of customers to offer their best rates. Various types of customer-specific characteristics include: state, age, gender, previous driving record, good student, type of car, year of car, color of car, classification of car (sport/economic), engine type, number of doors and more. All of these factors contribute to the amount that you will pay for insurance. By randomly picking an insurance plan, you may not select a company that focuses on your particular characteristics, and therefore, you will end up paying premium rates.
Typical yearly rates can average anywhere from $600 per year to $3000+ per year, which breaks down to the difference between $50 and $250+ a month. Do not throw your money away because you did not spend a few extra minutes researching the best insurance plan for you.
How much insurance do I need for my Audi?
The first question that you need to ask is to know how much insurance you actually need. Before even considering what you would want covered, you need to know what your state legally requires you to cover. This will be the bare minimum level of insurance that you should purchase (which is a popular choice when selecting insurance plans).
Most states require liability insurance. This saves you from handing over a huge multi-thousand or even million dollar payment when you are at fault in an accident.
| To view the required insurance liability limits for each state, download our FREE informational guide. |
Personal Injury Protection and MedPay
Another important component of insurance is Personal Injury Protection (PIP), or Medical Payments (MedPay). PIP or MedPay pays for your own medical expenses, any lost wages and whatever other costs may arise when you are injured in an accident. It usually pays 70 - 85% of your losses, and it also pays a death benefit. PIP is required in Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah.
Know your (minimum) limits
Now that you know the bare-bone amounts that you need in order to keep yourself safe, it is a good idea to purchase above the minimum limits. As the saying goes, you get what you pay for, and while you may cover injury liability, if someone else is injured and you are at fault, the minimum liability coverage may not cover their medical expenses. If this happens, it is likely that you will have to pay for their medical costs.
Overall, insurance companies generally recommend that you purchase $100,000/300,000 limits of bodily injury liability. If your personal assets are not that much, ( i.e. you do not own a home or car and do not have much savings), then you do not have many assets to go after and the minimum requirements might actually be the best choice for you, which may also give you a little bit more cash to try to start saving.
Other types of Coverage
Aside from bodily injury liability, personal injury protection, property damage liability and uninsured/underinsured motorist coverage, there is also collision and comprehensive auto insurance coverage that insurance companies encourage you to purchase. Collision covers damage to the policyholder's car resulting from running into anything (remember that pole you didn't see?) and comprehensive coverage takes care of your car in the case of theft, fire, falling objects, explosions, earthquakes, floods, riots, civil commotion, and other related things.
Comprehensive and collision coverage are required on most leases, and are absolutely necessary if you own an expensive car. If you are driving a "beater", you may end up paying more for your premium and coverage than the value of your car. Make sure you do the numbers to figure out if this is a good choice for you.
Before selecting the right insurance coverage, you should also consider what is covered for you under other insurances, such as medical and dental.
What should I know prior to researching companies?
In addition to what type of coverage you would like, you should also be aware of your driving record and your current auto insurance policy.
More is not better
The more citations, tickets and accidents that you have, the higher your premium will be. Typically, an insurance company bases your premium on what they expect to have to pay for your future driving habits. If you have proven yourself as a great driver who avoids accidents and speeding, they will give you a break. If you tend to be "accident prone" and are racking up points on your license, you can expect to pay a premium on your insurance.
Current assessment: Are you satisfied with what you have?
Check out your current policy. If you have ever been in an accident, did it provide enough to keep you out of the red? Did you wish you had more? Are your payments taxing you each month? Keep these things in mind and choose wiser as you select your next policy.
How do I research companies?
Step 1: Shopping On-Line
There are a wide variety of on-line insurance companies that will typically give you a quote the same day (usually within 15 minutes!).
This is a quick an easy way to become familiar with what you should expect to pay. Keep in mind that not all on-line sites are created the same - some may not provide a quote on-line but will call you with information, others, may have to forward the information to local agents. Make sure you read the policies prior to submitting your request so that you are not bombarded by unexpected insurance salesmen and pitches.
STEP 2: Keep track of all quotes and names of companies
It is very easy to get lost with different quotes and rates. Make sure that each company is quoting you the exact same policy for the same vehicle. Also, make sure you are accurately reflecting your driving record when getting a quote so that you do not become shocked when an "adjusted" premium is delivered to your door.
STEP 3: Make a phone call
Take your best find from your online research and select one or two local insurance companies to personally call. Typically, if you know what you are talking about, you can land your best deal. Tell that what you have already been quoted and see if they can do any better. Be careful that you do not sacrifice coverage for a better price. Make sure they are comparing apples to apples.
STEP 4: Make a decision
You should now have a few really good quotes in front of you. Before selecting the least expensive rate, you need to check out the legitimacy of your company. There are several ways to do this.
- Ask your local body shops and dealership
servicing departments which companies they prefer and have good
relationships with.
- Check out your state's department of
insurance to check out the complaints that have been voiced on this
company. (www.ican.com/state.html)
- Investigate consumer satisfactions/dissatisfaction information by checking out the Better Business Bureau and J.D. Power and Associates.
Before You Sign on the Dotted Line
So, now you have researched all of your options and feel really good about the price you are going to pay (as good as you can!) and the company that you are working with. So what is stopping you from signing on that dotted line?
Make sure that you review everything in your policy.
| It is easy for insurance companies to accidentally leave something out or add something in that will ultimately cost you more money. |
Make sure you understand every sentence in the contract, and if you do not, then do not hesitate to ask for an explanation. If it seems fishy, keep looking. You have plenty of suitors.
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