Auto insurance is a requirement by law in many countries, especially
third party insurance. Therefore, it should be regarded as a
essential expense in running a car, along with petrol, road tax, and
maintenance costs. Many of us never think about auto insurance.
We're conditioned to buy auto insurance as we're conditioned to pay
our water bill. However, there are some that don't feel that the
expense of auto insurance is necessary.
Consider the scenario of a motorist without auto insurance. She's at
fault for a car accident and is unable to work. She's liable for her
own medical bills, the other party's bills, and for property damage.
Without auto insurance, all the money comes out of her pocket.
Unless your last name is Trump or Gates, auto insurance is a must.
Auto insurance premiums can be expensive, going into the thousands
of dollars per year. One way to make auto insurance affordable is to
see if the auto insurance company can break up your premium into
monthly payments. Normally, you would fork over an initial down
payment, and then pay your auto insurance premium over several
months. Be aware, though, that some auto insurance companies will
charge an extra fee for that service. If at all possible, pay your
auto insurance premiums at least semi-annually.
One way to lower your auto insurance premium is to reduce your
coverage to the state minimums. Your monthly auto insurance payment
can be as low as $20 per month. This is not the best strategy,
however. Having the minimum auto insurance coverage is almost like
having no coverage at all.
One of the best ways to pay lower premiums for auto insurance is to
take advantage of as many discounts for which you qualify. There are
discounts for save driving. If you've never been in an auto accident
or have never been caught with a moving violation, you should
qualify for safe driver discounts.
Your age can factor in to your auto insurance premiums as well. If
you're between the ages of 16 and 25, you will have to pay higher
auto insurance premiums anyway. Once you hit the magical age of 25,
or you get married, your auto insurance premiums will go down.
The auto insurance deductible you choose can also affect your auto
insurance premiums. The higher your deductible, the lower your auto
Finally, always compare auto insurance rates among different auto
insurance companies. Even for identical coverage, auto insurance
premiums can vary widely between auto insurance companies. There are
many websites that will compare auto insurance rates for you. Check
with these websites, as well as your local auto insurance agents for
the best auto insurance deals.
Comparing Auto Insurance
When purchasing car insurance, it is imperative that you compare
auto insurance quotes among different companies. Some people get
discounts from their existing insurance company. However, when you
fail to compare auto insurance, you might be leaving a lot of money
on the table. To get the lowest possible premium, you must compare
auto insurance quotes.
Try to compare auto insurance quotes with at least three different
companies, possibly up to six. You can either compare auto insurance
rates with local agents, or you can go online. The advantage of
going online to compare auto insurance is that you can get quotes
from multiple companies on one screen. Make sure, however, that
you're doing an apples-to-apples comparison. When you compare auto
insurance, use the same coverage in all applications.
The lowest price isn't the only thing to look for when you compare
auto insurance. You have to consider the insurance company
themselves. Established insurance companies are your best bet for
great service and responsiveness.
You might find some newer insurance companies that low-ball the
premiums in order to get your business. Watch out! Companies like
these sometime leave people high and dry when it comes time to pay
for insurance claims. The money you saved with the premiums will be
spent trying to rectify the problems you have with the company. Not
only that, your rates might go up the following year, leaving you to
compare auto insurance quotes again.
Compare auto insurance rates, but also compare auto insurance
companies. When you compare auto insurance rates, make sure you do
so well before your current policy expires. That way, you'll have
plenty of time to compare auto insurance companies. You'll also be
able to explore each company and dig for discounts. You'll also have
plenty of time to ask questions of insurance agents that you can't
Once you compare auto insurance, you'll know exactly what goes into
your premiums and be able to get the discounts that apply in your
situation. You'll have a good understanding of the different
coverages available, and whether or not you need to have them. Most
importantly, you'll have an appreciation for the different companies
and their reputations. Insurance company ratings make all the
difference between a hands-off insurance experience and a full-blown
In summary, auto insurance should be regarded as
an essential expense in running a car. However, there is a lot of
difference in terms of price and coverage offered. Therefore, one
must do due diligent research before deciding on a particular