How to buy Auto Insurance
Purchasing Auto Insurance
is an important financial decision. Knowing how to compare companies
and rates and what questions to ask can go along way toward buying
an insurance policy that best fits your financial needs.
- Shop around
Many companies sell auto insurance. Compare prices. In some
states, prices vary by up to 100 percent. Ask agents, brokers
or insurance companies for price comparisons. Some state insurance
departments publish guides showing what different companies
charge in certain situations in various parts of the state.
- See if you can lower your insurance
Many companies offer discounts on the price of auto insurance
to people who have passed an approved driver education course
or who have a B-grade average or better. Take proof of driver
education and/or good grades with you when you shop for insurance.
Many companies also offer discounts if a car has anti-theft
devices or air bags.
- Investigate the types and amounts
of coverage you need
For example, if your car is not worth much, you may not
want to buy Collision Coverage.
- Ask about discounts
Many insurance companies offer substantial discounts for insuring
more than one vehicle, for not being involved in any accidents
in the previous three years, for completing driver safety courses
and for having an anti-theft device in the vehicle.
- Choose an agent, broker or company
representative you trust
Ask friends or relatives, or consult the telephone book.
- Read your policy
As a contract, an insurance policy creates several obligations
for both you and the insurance company. For example, the company
must defend you in court if you are sued under the policy. Therefore,
its important to give your insurer complete, accurate and timely
information about any accident or ticket. Before you sign anything,
review the policy and any confusing language with your insurance
representative and family.