How to Compare Auto Insurance Quotes & Save Money

The best way to save money on auto insurance is to do as much research as possible before buying coverage. Some drivers need only the most cut-rate policies to keep themselves barely legal, while other drivers need more comprehensive insurance. Follow these guidelines when comparing auto insurance quotes so that you choose the best policy for your needs.

Difficulty: Moderate

Instructions

1. First, understand what the different levels of coverage mean. The most common types of car insurance are liability, collision, personal injury, and comprehensive. It is also possible to buy insurance to protect yourself from un- or under-insured drivers, or to cover your liabilities when you rent a car. Not all drivers need every kind of coverage. If you drive frequently, or drive often on the highways, you should get personal injury coverage.
   
   The minimum level of coverage you need varies by state. Visit the website of your state's dept of transportation to learn the requirements.

2. Know that your insurance rates are affected by your age, gender, marital status, employment or school status, driving record, and condition of your car. Try to improve what you can so that you can take advantage of more discounts. Get your car inspected too.

3. Also understand what a "deductible" is. The deductible is the amount that you pay out of pocket before insurance covers the rest. For example, if you opted for a $500 deductible on your policy, and you have $900 worth of damages, then you would pay $500 and the insurance company would pay $400. The deductible you choose greatly affects your car insurance rates.

4. After you have considered all these factors, start gathering quotes from different insurance companies. Most websites have forms where you can input the make/model/year of your car, the deductible you want, and then the website will spit out a value for your premium.
   
   Also know that the higher the deductible you opt for, the lower your premium will be.

5. If your car is one that will depreciate rapidly, but you have several more years of payments to make, you should also compare GAP coverage quotes. GAP coverage will cover the "gap" between what your car is actually worth, and what you still owe on it in the event that your car is totalled. If you are not at a high risk for totaling your car, you can get a good rate.

6. Make a list of the 3 or 4 options that are best for you. Then, call the insurance companies and ask about future discounts for good driving history. Some insurance companies will lower your rates if you don't make any claims the first year under the policy. It's better to ask a live human about the details of these good driver discounts.

7. Once you've settled on the best policy, sign up, and pay the first premium. You should always keep your eyes open for better deals, even if you already have insurance.

[starlet67]

on 5/28/2009 Helpful info for saving on auto ins!5*