How much insurance you need on your car?


Auto insurance works on a set of probabilities based on past records. These histories and facts determine the rate of premium you will be offered. Customers who dread worst case scenarios often end up paying huge rates. Insurance companies love them! Shopping for auto insurance can be a time-consuming and a rather boring job. But with quotes differing by significant amounts, you must do it. Auto insurance may vary as much as 900 dollars annually for the same individual and the same car. This article explores some of the important questions that will guide your choice of auto insurance.

How much coverage do you actually need?

Each state has its own set of recommended coverage. You might go online and read up about the required coverage in your area. This is particularly important if you are a first time driver. If you live in a theft-prone area, chances are the anti-theft clause is necessary. On the other hand, if you are a good driver with a good record, collision insurance may be an option rather than a compulsion. Again if you do a lot of long distance driving across state borders, chances are you will pay a higher premium.

What is the best way to compare rates?

Have a long look at your current policy. Keep your driving license number and vehicle registration handy. Filling out auto insurance quotes takes about a quarter of an hour each. Most companies also offer a toll free number you could call. Work out how much you are paying over a month as well as over a year. Now when you have a tangible figure to work with, compare incoming quotes to the one you have. Online comparisons are easy to do and reliable too.

How important is your driving record?

Driving record is one of the single most important factors for auto insurance quotes. Speeding tickets, parking violations and motoring convictions can drive up your premium like nothing else can. The insurance provider figures that you represent a high risk to the company. If you have negative points or tickets which are about to be erased from your record, ask for quotes after they have gone.

How do you finally decide on which insurance provider to use?

Cheapest is not always the best. You must take care to check the company’s financial background and their customer ratings. Official websites may be accessed for reliable client ratings on the company.