The Rules - Quips and Quibbles Every Driver Should Know About Their Car Insurance

Have you ever wondered why someone didn't just go out and write a rulebook for car insurance shoppers that don't know comprehensive from collision from property damage and liability? It would make it so much easier if you knew where things were going to go wrong before they even began! That's why we're going to take a look at the ins (and outs) of buying insurance that every driver should know before they ever set foot into an insurance agent's office.

The first thing you need to know is that while the state only requires you to have a minimum amount of liability car insurance, that ""minimum amount"" isn't going to come anywhere close to covering the costs and expenses that can result in a major accident. Let's say you live in a state that only requires $15,000 in bodily injury per person. That keeps your car insurance rates to a minimum, but the first time you're in an accident and someone has to spend a day or three in the ICU (at $5,000 a day) you're going to be left with a huge pile of bills.

Plan on buying $100,000/$300,000 in bodily injury liability to make sure you're covered for anything that might pop up along the way.

Next, let's talk deductibles-please. This is a gaping black pit that swallows more than its fair share of drivers every year eager to find a way to save on their insurance. Raising your deductibles means that you're promising to pay more to your insurance company if you're ever in an accident. Since your insurer is going to be paying less, they're going to charge you less. That's a good thing, right?

What most drivers forget is that nobody's going to tell them they're going to have a car accident tomorrow-or even next week. That's going to happen without any warning whatsoever, and when it does car insurance companies are going to expect their deductibles to be ready to go the second they're done fixing your car. Never set your deductibles any higher than the amount of money you can come up with at a moment's notice.

Next, you may not need comprehensive or collision coverage per se (at least, according to the state), but unless your car is worth less than you have sitting in your bank account right now it's going to cost more to replace than you have to spend. Even if you only walk away with $1,000 that's still enough to get you started on a down payment for a new car if yours gets totaled. Unless you absolutely, positively can't afford it, go for it.

Finally, never drive anywhere without being covered by an uninsured/underinsured motorist policy. With the economy being what it is there are hundreds of drivers out there who decided that the best way to save money on their car insurance rates was to drop their coverage altogether. The last thing you want to have to do is struggle to pick up the costs from an accident when you can usually get this kind of coverage for an additional 5-10% each year.

That's not all you need to know about buying car insurance, but it's enough to get you started. Just remember to read the fine print on your policy, don't be afraid to ask questions (no matter how big a rush your agent thinks he's in) and don't forget to ask about available discounts. You do all that, and you're going to be just fine.

Shopping for Auto Insurance - 5 Important Tips

With auto insurance, it pays to be well covered when you are in an accident. Of course, you don't want to have to pay any more than you have to. By spending some time shopping for your car insurance you stand to save hundreds of dollars a year. Here are a few tips to consider while shopping.

How Much Insurance do you Need - In order to get the right insurance, you must first determine the amount of coverage you need. This varies from state to state, so you must first find out what is required where you live. Once that is determined you can choose the package that is right for you. Do you consider yourself an over-cautious person? If so, then insurance companies love you. They thrive on peoples concern about the worst-case scenario. Try to determine what you will really need and cover for that.

Check your Driving Record - A clean driving record goes a long way to helping you with the cost of your insurance. It pays to know when speeding tickets are coming off your record. If a ticket or points are about to disappear off your record, wait until it does to get your insurance. You will be amazed at how much you save.

Competitive Quotes - Like anything else you purchase, it pays to shop around. This is not an easy task, but it is necessary if you want to save yourself money. If you have a company that can do the comparing for you, you can go that route. Most of the time it is a matter of typing in some information into an online form and waiting for a quote. It really is that simple, but it pays to get at the very least 3 different quotes before making a decision. It may take as long as 15 minutes per quote, but think of it as time well spent - especially if you end up saving your self hundreds of dollars.

Is the Insurance Company Reliable - Saving money isn't everything. Especially if you are in an accident and you find out your insurance company is difficult to work with. Take the time to find out more about an insurance company before going with them. You can go to the National Association of Insurance Commissioners' Consumer Information Source to access more information about insurance companies, including closed insurance complaints, financial data and licensing information. You can also check out the insurance company at consumer reports or J.D. Power.

Read the Policy before Signing - This may seem obvious, but take the time to read your policy before you sign. Make certain what you thought to be true about the policy indeed is. You can save yourself a big headache down the road by taking this ounce of prevention now.

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