Ever get that feeling like you're lost in a sea of paperwork when you're trying to buy car insurance ?
Speaker 2Yeah .
Speaker 1We're diving into that today with this guide that someone sent us , called how to Purchase Auto Insurance , by Ezekiel Hudson .
Speaker 2Yeah .
Speaker 1It's dense .
Speaker 2Yeah .
Speaker 1So we're going to break it down .
Speaker 2It is .
Speaker 1And make sure that you can hit the road .
Speaker 2For sure .
Speaker 1Feeling confident .
Speaker 2It can be so confusing all the jargon and all that , but this guide is great , Like it's a really good starting point .
Speaker 1Yeah , let's jump right into it . Let's imagine .
Speaker 2Yeah , let's do it .
Speaker 1That moment where you know you're driving along and all of a sudden , oh no . Slam on the brakes you somebody . Yeah , exactly that's the worst . So Ezekiel starts off by talking about the different types of coverage .
Speaker 2First up is liability . Yes so liability coverage . This is like your financial shield OK If you are at fault in an accident .
Speaker 1Right .
Speaker 2It's there to protect you , so it can cover the other person's medical bills . There are car repairs , oh wow . Even lost wages potentially .
Speaker 1It's not just about like fixing the car , it's like it could be a lot bigger than that .
Speaker 2Way bigger yeah .
Speaker 1And he talks about how understanding all these coverages can really help you not overpay Big time , which I think we all who wants to do that ? Yeah , exactly , exactly .
Speaker 2That's not me .
Speaker 1So next up , after liability , he talks about collision coverage .
Speaker 2Okay , so collision . So this one comes in when your car is damaged in an accident , regardless of who's at fault . Okay , so that fender bender collisions got you covered .
Speaker 1Okay , so that's if like it's my fault . But then what happens ?
Speaker 2if we're not your fault or not my fault .
Speaker 1Okay , what if it's like you know ?
Speaker 2what if a tree falls on your car ?
Speaker 1A tree falls on my car , yeah , or my car gets stolen , oh yeah , or there's a hailstorm .
Speaker 2That's comprehensive .
Speaker 1Okay .
Speaker 2Comprehensive is for those unexpected events Theft , fire , hail .
Speaker 1Acts of God .
Speaker 2Acts of God . Exactly A shopping cart rolls into your car . Yeah , that's comprehensive .
Speaker 1That happened to me once .
Speaker 2Did it really .
Speaker 1It did . Yeah , it was terrible .
Speaker 2Oh no .
Speaker 1But okay , okay , so we've got those scenarios covered . We do what happens if I'm in an accident with someone .
Speaker 2Yes , and they either don't have insurance , oh God , or they don't have enough . Yeah , that's the worst To cover it . That is where uninsured and underinsured motorist coverage comes in yeah it's like your extra layer of protection okay , so it's like just in case just in case , yep , and then rounding out the coverage crew okay is personal injury protection , or PIP , and medical payments coverage okay , so those are all about making sure that , like you and your passengers , me and my passengers are covered yes , medically , medically yes . Okay , got it Regardless of fault .
Speaker 1Okay , yep , and now Ezekiel talks about how everybody's insurance needs and this is important Are different .
Speaker 2Yes , this is where it gets good . Yeah , because your insurance needs are not the same as your neighbors .
Speaker 1Right .
Speaker 2Right , and this guy does a really good job of diving into how to determine your unique coverage needs , so it's like OK , yeah got the basics down , now let's now let's tailor it . Yeah , yeah , figure out what you need .
Speaker 1Let's personalize this . Ok , he talks about your car , how much it's worth , where you park it at night . Ok , your driving record Right , how much you drive , drive all that . Where you live , yeah , where you live , all of that .
Speaker 2Right . So if I'm driving a brand new sports car in a big city , it's very different than someone who's ? Driving their 10-year-old car in a rural town . 100% , yeah , right .
Speaker 1Different needs .
Speaker 2And he talks about how under-insuring can be a risky gamble .
Speaker 1It is Because you might save some money in the short term .
Speaker 2But if something , happens , you're going to be in trouble .
Speaker 1Yeah , so it's that peace of mind .
Speaker 2It is Knowing that you're covered Exactly . Peace of mind , yeah .
Speaker 1So let's talk about this distinction he makes between standard versus non-standard auto insurance .
Speaker 2I love this .
Speaker 1It's like we're choosing lanes on a highway right .
Speaker 2Yes .
Speaker 1Like which lane are you in ?
Speaker 2Okay . So standard auto insurance , that's like the lane for people who are just cruising along . Good drivers , good records , lower risk .
Speaker 1So they're probably going to pay lower Lower premiums , yep .
Speaker 2Okay , and they're probably going to have more coverage options as well . Got it , yeah .
Speaker 1So they're a safer bet for the insurance company .
Speaker 2Makes sense .
Speaker 1Right yeah . So what about that other lane ? What about that non-standard ?
Speaker 2So that's where it gets a little tricky , because this is for drivers who maybe have had some accidents or some tickets , maybe a DUI . Oh , okay , maybe have had some accidents or some tickets , maybe a DUI , and so they are considered higher risk by the insurance companies .
Speaker 1So they're probably going to pay more .
Speaker 2They are going to pay more higher premiums and their coverage might be more limited as well .
Speaker 1So you might find yourself in one lane or the other .
Speaker 2You might , yeah , Depending on your you know driving history and all of that .
Speaker 1And he really clearly lays out the pros and cons of each type .
Speaker 2He does . He talks about how standard policies often have more discounts oh nice which can save you money .
Speaker 1Which I love .
Speaker 2Yes .
Speaker 1But he also points out that nonstandard policies , while they are more expensive , right , they can be crucial they can For drivers who might otherwise not be able to get insurance . Right , yes , exactly .
Speaker 2Because they have to have something Right .
Speaker 1Exactly .
Speaker 2So it's about finding the right fit for your situation , exactly , exactly .
Speaker 1And speaking of finding the right fit , Okay . Let's talk about the power of no .
Speaker 2The power of no .
Speaker 1To the first insurance quote you get .
Speaker 2Don't just say yes to the first , don't do it , don't do it , don't do it Shop around . Shop around . He really emphasizes that . He does he's like don't .
Speaker 1Don't Settle . Settle for that first one .
Speaker 2Yeah , because you know we talked about all those factors .
Speaker 1Right .
Speaker 2They all impact how much you're going to pay Right .
Speaker 1For your insurance insurance . So if I go to one company they might weigh one of those more heavily than another company , and so that's why getting multiple quotes is good , because then you can see .
Speaker 2It's about comparison shopping right . You want to get the best deal . You wouldn't buy a par without .
Speaker 1It's like booking a flight .
Speaker 2You don't just book the first one you see .
Speaker 1Yeah , exactly so , and that could end up potentially saving you Big time A lot of money .
Speaker 2Yes .
Speaker 1By just getting Just from shopping around . Just from shopping around .
Speaker 2Yeah . And speaking of saving money , yes , I love this part Discounts . Yes , he lays out all these discounts that you might qualify for safe driving ? Yes , bundling Like your car insurance With your home insurance yep .
Speaker 1With your renter's insurance , whatever .
Speaker 2Yeah , all the things .
Speaker 1Good student discounts .
Speaker 2Yes , good students .
Speaker 1Like a treasure hunt for savings .
Speaker 2It is a treasure hunt . It is .
Speaker 1And all these can really add up , so they do it's worth looking into .
Speaker 2Yes .
Speaker 1Okay , now let's talk about this word .
Speaker 2Okay , that .
Speaker 1I always get a little confused about Okay Deductibles .
Speaker 2Deductibles . So many people are confused about this .
Speaker 1Because it's like , what is it ?
Speaker 2What is it ?
Speaker 1Is it good , is it bad ?
Speaker 2Yeah .
Speaker 1How does it work ?
Speaker 2Think of it as your share of the cost . Okay , if you need to use your insurance .
Speaker 1So if I have a $500 deductible and then I get into an ? Accident and the damage is $2,000 , I pay the first 500 .
Speaker 2You pay the first 500 , the insurance company pays the rest . Got it . So the higher the deductible usually , the lower your monthly premiums . Okay , but if you have to use your insurance , You're going to pay more upfront . You're going to pay more up front . You're going to pay more . Got it , got it . It's that balancing act .
Speaker 1It's about finding that balance . For you , it is Of what you can afford to pay .
Speaker 2Right .
Speaker 1Versus what you want to pay Every month . Yeah , every month . Got it Exactly OK . So we've covered a lot of for our needs , even potential discounts . But Ezekiel also dives into something called exclusions , the things our insurance might not cover . I have to admit , this is the part of the insurance puzzle .
Speaker 2That always makes me a little nervous . I get it . It's like reading the fine print right , we know it's important , but it's not always the most exciting read . But understanding exclusions is crucial to avoid any surprises if we ever need to use our insurance .
Speaker 1Exactly . So what kind of things fall under these exclusions ? What are some examples Ezekiel highlights ?
Speaker 2Well , one common exclusion is intentional damage . So if we decide to take our frustration out on our car hopefully we never do our insurance company likely won't be too sympathetic .
Speaker 1That makes sense . Insurance is there for accidents , not for well letting off steam right .
Speaker 2Exactly . Another common one is wear and tear . Insurance isn't meant to cover routine maintenance like oil changes or new tires . It's there for those sudden , unexpected events .
Speaker 1So if my engine decides to call it quits after years of trustee service , that's on me , not my insurance company .
Speaker 2You got it . It's more about protecting us from the unexpected costs associated with accidents and unforeseen events , not the normal wear and tear that comes with driving .
Speaker 1That makes sense . Are there any other situations or exclusions that Ezekiel mentions that we should be aware of ?
Speaker 2Actually he shares a cautionary tale in the guide about letting someone without insurance or even a valid license drive our car .
Speaker 1Oh , that's a good one . I feel like that's something that might not always be top of mind , especially if we're just doing a quick favor for a friend .
Speaker 2Exactly , but the guide warns this could not only void our coverage but also leave US vulnerable financially if something were to happen .
Speaker 1Us vulnerable financially if something were to happen Definitely a risk I'd want to avoid . So we've covered the different types of coverage , figuring out what we need , standard versus non-standard policies , shopping for quotes , even those tricky exclusions . What are the final steps Ezekiel outlines before we sign on the dotted line .
Speaker 2He reminds us to consider additional coverage options that might be worth adding to our policies , things like roadside assistance , which can be a lifesaver if we get a flat tire or have a dead battery , or rental car reimbursement , which can be helpful if our car is out of commission after an accident .
Speaker 1Those are great points . I've definitely been saved by roadside assistance a time or two . It's definitely something I'd recommend considering .
Speaker 2Absolutely , and he also suggests looking into the different payment plans offered by the insurance company . Sometimes we can snag a discount by paying our premium annually instead of monthly .
Speaker 1Saving money and being prepared music to my ears . Any other golden nuggets of wisdom from Ezekiel before we move on ?
Speaker 2One more thing he really emphasizes is understanding the claims process before we need to use it . We want to know exactly what to do , what documents we need and how long it'll take to get our claim processed , if we're ever in an accident .
Speaker 1Oh , that's huge . I've heard horror stories about people scrambling to figure things out after an accident and that just adds to the stress of an already stressful situation you're right , it's much better to be prepared and informed upfront than to be caught off guard later absolutely . It's like that old saying an ounce of prevention is worth a pound of cure , right ?
Speaker 2exactly knowing what to expect and how to navigate the process can make a world of difference if we ever have to file a claim it's like having that insurance , that insurance .
Speaker 1Instruction manual right . Bookmark , yeah , bookmarked . Ready to go , yeah , instead of having to , like you know .
Speaker 2Dig it out from under a pile of stuff .
Speaker 1Okay , so Ezekiel's guide has really given us .
Speaker 2It has .
Speaker 1Like a crash course in auto insurance .
Speaker 2Crash course We've covered everything . We have .
Speaker 1From the coverages . Yes To the exclusions , yes To figuring out how to navigate all this . What's like the biggest like takeaway ?
Speaker 2takeaway ? Yeah , I think . For me , it's just that you know , when it comes to car insurance , knowledge is power yeah , you know , we're not just we're not just like blindly checking a box . Yeah , we want to know what we're signing okay , yeah , so we're becoming informed . Informed consumers .
Speaker 1Informed consumers . There we go .
Speaker 2Asking questions .
Speaker 1And it's okay to you know it is Ask questions and shop around .
Speaker 2Please do yes .
Speaker 1And you know .
Speaker 2Advocate for yourself , you know . Advocate yeah , it's okay , to do that .
Speaker 1Okay .
Speaker 2Yeah , you're paying for this right .
Speaker 1Right .
Speaker 2And this is starting point , but , um ,
it is . It got me thinking about okay , you know he talks about how everybody's situation is different . You know , right , like you said , if you're a new driver or you have a not so great record yeah , or if you have a really nice car right , like a luxury car , like a luxury car that's gonna , it's gonna change things what you need yeah , so it's all about figuring out yeah you know what you need need for your situation .
Speaker 1There's no one size fits all .
Speaker 2There isn't , and you know what ? That's a good point . There isn't .
Speaker 1And Ezekiel you know it's so great that he's like offered up .
Speaker 2I know he's so great . His contact info I love that he did that .
Speaker 1So anyone listening you know they can reach out to him directly .
Speaker 2That's above and beyond .
Speaker 1He seems like he's passionate about . He is Helping people .
Speaker 2He really is .
Speaker 1With their . He owns insurance With insurance , yeah .
Speaker 2Yes .
Speaker 1So , Wow . There you have it , another deep dive .
Speaker 2Another one Conquered Down down .
Speaker 1We hope you enjoyed this journey into the world of insurance the world of auto insurance . Yes , we hope that you feel empowered empowered , yes , to make good decisions .
Speaker 2Good choices , yes . No-transcript .