How To

How to Compare Car Insurance Policies

Contributor
By eHow Contributing Writer
(1 Ratings)

Insurance policies come with many terms and coverage options. You need a bit of legal and financial knowledge to choose a policy that best fits your needs. Most insurance agents are ready to give you information about multiple options and quotes for possible coverage. But they want you to buy a policy from them, so shop around and get information from different agents.

From Quick Guide: Cheap Auto Insurance
Difficulty: Moderately Easy
Instructions

Things You'll Need:

  • List of names of insurance companies offering car insurance
  • List of descriptions of various car insurance policies offered by different insurance companies
  1. Step 1

    Look at the brand name of the company while comparing quotes. A company with weight in the marketplace makes the company credible and accountable, which helps you when making claims.

  2. Step 2

    Look at the deductible when reviewing the quotes. Higher deductibles usually mean lower premiums. Depending on the type of insurance you want, choose a policy based on higher premiums and lower deductibles OR lower premiums and higher deductibles.

  3. Step 3

    Put all cars that you own under a single policy and check which ones offer you the lowest premiums. Also, ask about multi-policy discounts if they are available.

  4. Step 4

    Compare the amount of insurance coverage of different policies.

  5. Step 5

    Check for the total covered for bodily injury and liability insurance. Choose one with the highest dollar value for the best price.

  6. Step 6

    Compare the levels of other coverage, such as rental cover, PIP, medical, full-glass, towing and comprehensive collision. Ask for multiple quotes with your preferred combinations and go for the policy with the lowest quote.

  7. Step 7

    Check the level of coverage for ‘underinsured or uninsured motorist.' With the number of uninsured motorists on the road, there's a good chance you may need need this kind of insurance coverage.

Tips & Warnings
  • Choose the type of insurance policy based on your finances and the condition of the car. As these factors change, you can later update the status of your policy.
  • Insurance policies and rates vary from state to state. Choose a six-month or yearly plan based on how long you plan to stay within a state.
  • Be sure to compare the amount of premium you will be paying against the type of coverage and quality of service you will get in return.

Comments  

jimmyjoke said

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on 7/11/2009 Great Share! I have been struggling to find good affordable car insurance for a while. My friend told me about a site where i can compare car insurance quotes. I found a great deal on car insurance now! I thought i would help everyone and share it, here it is: http://cli.gs/affordable-auto-insurance

aaatexas said

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on 7/6/2008 A great way to save on your car insurance is to switch to a member-owned company which will allow you to get lower rates. Once a member of AAA Texas you are eligible for their insurance products.

If you contact me for a new membership, I will:

-waive $20 admission fee on AAA membership
-include a FREE spouse/associate member (an additional $26 savings!)
-provide a FREE, no obligation, comprehensive insurance review (average AAA member saves over $350 a year on their car insurance!)

My contact information is below:

Paula Harold
AAA Texas
harold.paula@aaa-texas.com
1-800-222-8586 ext.5078

I'd love to answer any questions about the membership or insurance in general. Just send me an email!

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