Every car needs to be covered by auto insurance. Itís mandatory in all 50 states. Itís important to understand that not all automobile insurance is the same. One of the most common differences is the minimum amount of liability insurance that a driver must carry. There is also collision insurance which pays for repairs to your car in case of an accident while your liability insurance pays for the damage to the other car if you are at fault. With collision insurance you can determine the amount of the deductable, the amount of the costs you pay before your insurance company pays, which can range from none to $1000 or $1500, or sometimes more. Then there is also comprehensive coverage which covers things like a limb falling on your car, damage from a hailstorm or vandalism.
When you are looking for automobile insurance, the first important decision you have is: how much liability insurance do you need to obtain. Following that decision you can decide if you want to carry collision coverage and comprehensive. Knowing this information is important before you start shopping for insurance since it will have an impact on how much you will have to pay to get your automobile insurance coverage.
The second step is to know your driving record. If you have a good driving record this will help keep your rates low. If you record is poor or you have a DUI, this will not only impact your rate but can also determine if you are eligible for insurance without having to go into a pool of drivers designated by your state for drivers with DUIís (Driving Under the Influence) and etc. If you donít know your driving record, you can call your state highway department and they can provide you a copy.
Once you know this information, you have what you need to go shopping for your automobile insurance. As you get different quotes, itís very important for you to know that you are receiving quotes on the identical coverage. Otherwise a difference in price wonít mean very much or what looks like a ďdealí really is not adequate for what you need. A great way to go about getting a price is to use the internet. There are many well established online automobile insurance providers. Based on the information you provide, and thatís why itís so important that the information you use is accurate, they can give you a quote on what it will cost to provide you with the coverage youíve requested.
Here are a few more points that are important to remember when getting quotes on your auto insurance:
- Be sure you buy enough liability insurance. If you have no assets or limited assets having the minimum amount of liability insurance required by your state is fine. But if you have a home or savings account and similar assets, you should consider the possibility of carrying more than the minimum.
- Donít agree to a deductible that if you have to pay it you canít. In other words, if something happens to your car and you have to pay say a $1000 deductible and thereís no way you are going to have this, consider a lower deductible.
- In many states your driving record ďforgivesĒ you over time. Be sure and stay aware of the status of your record and be sure if thereís an improvement that it reflects in your insurance premium.
No matter what anyone says, there is a difference in prices from different insurance companies for the identical coverage, so shopping and getting a quote is well worth the time and effort. Prices also change so itís a good practice to get new quotes on your insurance at least every two years.