Auto Insurance Rule # 1: Shop Around

Whether you are looking for car insurance because you are buying a car or just want to see if you currently have the best auto insurance policy you can, it pays to shop around. Auto insurance rates vary dramatically, so it pays to compare quotes between auto insurance companies like 21st Century Auto and sites like ElectricInsurance.com.

Auto Insurance Rates Vary Depending on Coverage

First, learn a little about car insurance so you figure out what kind of insurance you need. For example, if you are financing a car you must have collision and comprehensive insurance as well as liability auto insurance. Liability insurance covers the cost of damage you may do to other individuals or property owned by others in the event of an accident. Collision coverage takes care of situations where you are at fault. Comprehensive insurance covers your own car in a situation caused by nature or an unknown person, for example in a hit and run scenario or when your car is stolen. Uninsured motorist auto insurance covers you if your car is damaged by someone without an insurance policy. Medical coverage makes payments for personal injuries; however, this is often unnecessary if you have good personal medical insurance.

Auto Insurance Deductibles: How Much Can You Afford?

Each portion of the auto insurance policy will have deductibles and limits. Deductibles are the amount you will have to pay in the event of an auto insurance claim before your car insurance company pays its portion. Limits are the maximum amounts the auto insurance policy will pay in the event of an accident. Decide what coverages are really necessary for you since over-insurance is a waste of money. It is important when comparing auto insurance policies and to make sure that you use the same deductibles and limits since these radically affect the car insurance rates. For example, a policy with a lower deductible, such as $250, will have higher auto insurance rates than a comparable policy from the same carrier with a higher deductible like $500 or $1,000. Just changing your deductible can save you a substantial amount of money each year.

Check into Car Insurance Companies' Discounts

Make sure you look into any car insurance discounts. Most car insurance companies offer discounts for good driving records and charge less if you drive less. However, you may also be able to get discounts on car insurance by having multiple policies (for example another car or a life or homeowners insurance policy) with the same carrier. Many auto insurance companies offer discounts for security systems such as alarms or LoJack, so ensure these are factored in as well.

Research Auto Insurance Quotes Online

The Internet is one of the best tools to compare car insurance quotes from multiple companies quickly and easily. Not only can you visit direct car insurance companies such as 21st Century Auto, you may visit online auto insurance brokers and clearinghouse sites who will allow you to quickly compare car insurance quotes from multiple companies after entering your information only one time. One such site is ComparisonMarket.com. You simply fill out one form with your car insurance needs and rapidly receive competitive quotes from several companies.

Auto Insurance Rate Comparison Is Essential

Whatever you do, make sure you do not buy auto insurance without receiving quotes from multiple carriers and without investigating all of the discounts available to you. Auto insurance companies are eager to compete for your business and the Internet has made auto insurance quote comparison shopping easier than ever before.