What You Should Know to Get the Best Rates On Your Auto Insurance

Written by Tracy Paige on December 15, 2009 & Posted in Auto Insurance

When you are looking for cheap auto insurance, it is important to know how insurance companies determine rates. Your insurance rates are based on a combination of factors, which include:

  • The type of car you drive
  • The value of your car
  • Your driving record
  • The number of miles you drive annually
  • Where you live
  • Your age
  • The level of coverage you choose

Look For Discounts

There are many discounts available for car insurance policies: good driver discounts, good grade discounts for students, multiple policy discounts, and more. When you are shopping for car insurance you should check with carriers to see which discounts you may qualify for.

One of the easiest discounts to get is the multiple policy discount. You may be able to save money by having one insurance carrier provide your homeonwers or renters policy, as well as your auto insurance policy.

What Insurance Should You Buy?

The type of car insurance you choose makes a big difference in your premium amount. Nearly all states in the US require drivers to purchase a minimum amount of liability coverage for their cars. To protect your vehicle, as an asset, you should also consider collision and comprehensive insurance.

Here are the different types of coverage available:

  • Liability Coverage: This coverage may protect you from financial harm if you cause bodily injury or damage to another person's property in the event of an accident
  • Medical Payments or Personal Injury Protection (PIP): PIP covers your injuries, as well as any passenger's injuries, in an accident
  • Collision Coverage: Provides protection against damage caused by collision with another car or object. You are also covered against damage should your vehicle tip or roll over
  • Comprehensive Coverage: Covers damage or loss of your vehicle due to theft, or damage from something other than an accident, such as flood or fire
  • Uninsured and Under-insured Motorist Coverage: Covers damages or loss in a hit and run. It also provides coverage in an accident where the other motorist does not have insurance or does not have enough insurance

Depending on your needs and financial situation, you may decide to get quotes for the maximum amount of coverage, or just liability coverage. If you can absorb the financial loss of your car, liability coverage may be sufficient. You can also bring down the cost of your auto insurance premiums by raising your deductibles. However, make sure you have enough in an emergency fund, or that you can afford to pay the deductible in the event of an accident.

Now that you know the basics, requesting and understanding quotes should be easy. To start gathering auto insurance quotes, fill out the form and find the best auto policy for you and your family.




About the Author

Tracy Paige is the Treasurer of a non-profit organization. She is also a multimedia specialist for an e-learning company. Tracy's experience includes banking and years of business management. She holds a bachelor's degree in Business, specialized in Finance.


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