How to Estimate Car Insurance

Car insurance is required by law.

Car insurance is required of any car owner, regardless of the state in which they reside. Many auto dealers require that new buyers already have car insurance before allowing the new owner to drive the car off the lot. The cost of car insurance varies widely by state and insurance company. Obtain estimates from a variety of companies so you know what the impact of coverage will have on your personal finances.

Instructions

1. Determine the amount of coverage that is needed. Each state has different requirements for the minimum amount of coverage required, though most states will require a minimum of liability insurance. Look into the state requirements and then write down other needs in car insurance for the specific car. An old used car might not need as much coverage as a new sports car or an expensive classic car.

2. Look at personal driving records for all the drivers of the vehicle. Tickets, crashes and other dings to a driving record can result in higher insurance. Bad driving records will make the insurance price rise.

3. Compare different companies online. There are online quotes available through online auto insurance websites and information about different options available. Write down information such as quotes from the website, options available and special offers. Record your findings on separate pieces of paper per company so as not to mix up the various information.

4. Call the insurance companies on the phone. Not every insurance company will offer online quotes, so these need to be called directly. Even local companies can be called, which can often be found in the phone book. Obtain a quote and information from customer service representatives.

5. Ask about deals. Many car insurance companies offer deals such as good student discounts or good driver discounts. Find out what deals are being offered and how much those can save on a quote if they apply.

6. Look into the insurance companies. The state department of insurance will give information such as customer complaints and surveys. Local mechanics can also be consulted to find out if the insurance companies have paid for customer vehicles.

7. Write down the quotes, subtract any savings that are available through deals and add or subtract any other factors that affect the price of the insurance, such as adding extra services. The end result is the estimate cost of the insurance. The service of the company should be considered before purchasing the insurance. The cheapest insurance is not always the best option because it might have problems with insurance claims. This can be factored in as estimated costs in case of accidents.

References

• Edmunds: Ten Steps to Buying Auto Insurance