How to Get Cheap Car Insurance

Car insurance is something we have to keep, but most of us don't know what is required and what is hype. You can save a ton of money if you pick the proper insurance.

Difficulty: Easy

Instructions

1. When comparing insurance, make sure to have your insurance paperwork in hand. Insurance companies will quote you a favorable price, but are they cutting your benefits to do it.

2. Call several local insurance companies as well as go on line and search for rate quotes. A local insurer may be willing to cut the cost if you have a relationship with them. In Florida, large Oak trees hanging over your house increases your rates, If you have a relationship with the people, they may ignore the tree.
   
   Click on the links on this page for quick access to rate quotes on line by reputable car insurance companies.

3. Key items to know. Comprehensive insurance pays for things like a break-in, or slashed tires, etc... Collision insurance pays for your car damage if you hit someone. If your car is worth more than $2,500, you probably want collision. Liability insurance pays for the other guys car damage, medical bills, if he sues you, and if there are other charges, it also covers medical bills for any occupants in your car. Medical insurance pays for everyone who may have been hurt in your car.

4. Most insurance starts out at $25,000 worth of liability coverage. It saves you money, but if you total the other guys car, how many people own a car worth less than $25,000 these days? Add on top of that and medical bills and law suits and you are way over $25,000. I suggest getting at least $100,000 worth of coverage. Remember, if you have your home covered by the same insurance company as you car, you can add an Umbrella to the home that covers the liability of all your cars, boats, motor homes, etc... for about $20 per month. It cost more, but you won't have to pull $75,000- a million dollars out of your pocket if the worst happens on your way to work tomorrow.

5. Remember not to let them scare you into things you probably don't need. The best one I hear is on medical insurance. They will tell you that you won't be treated or it will cost you tons of money..... What about your medical coverage that you pay for every week at work? That covers medical bills too. Make sure to ask them about that and how it integrates into your overall coverage if you get hurt.

6. Once you have asked the questions and received the quotes, spread them out and weigh out your options. I have found that my long term loyalty with my current carrier always gives me rates within a dollar or two of those "cut rate" insurance companies. Loyalty does count. If you are thinking about sticking with your company, but did find lower rates, stop by and talk to them, I have found that they can somehow lower my rate just a little more if I ask.

Tips & Warnings

• Compare apples to apples, anyone can quote a cheep rate, but what does it cover?
• Insurance laws vary widely across the states, know your laws and abide by them.

[ammiller]

on 10/4/2008 I liked your article, I just wanted to clarify a few things regarding coverages in your Step 3: 1) Comprehensive does NOT pay for the car you hit; liability does. (check your policy, it is the property damage portion of your liability coverage). Comprehensive coverage pays for damage to your car from anything weather related such as hail, windshields, and any object (except a vehicle) that falls on your car, maybe falls off of another vehicle on the road, etc.
and 2) Liability pays for anyone who you may have hurt in an accident; including anyone riding in your car. It's a good idea to keep your liability limits high, let's say, at least 100,000/300,000/100,000.
These are common misunderstandings that I come across every day, so I thought it may be helpful.