The Basics

The law requires you to have insurance for your vehicle. If you fail to insure your vehicle you may face fines, suspension of your driving privileges or even jail.

What type of coverage do I need? That depends where you live. Most states require at least liability (bodily injury and property). Most states also have different minimum dollar amounts for each type of insurance.

Is liability insurance enough coverage? If you own an older auto then yes but you might want to buy more than the minimum dollar amounts just in case you are involved in a serious collision.

If you are buying a new car and are getting financing then you will be required to have full coverage.

Choosing an Insurance Company

There are a lot of insurance companies in business today so choosing the appropriate one can be difficult. A few things to take into consideration :

Is the company licensed in your state? This is important if you every have a problem as you can get help from your state insurance department.

What is the price for the policy you desire? Prices can vary a great deal between companies depending on coverage and other factors. You should get quotes from several companies before choosing a company.

How is the service record of the company? This is very important if you have questions about the policy you are considering or have to file a claim. Your state insurance department will be able to supply you with information regarding the number of complaints they have had.

Tips for saving money

• Get quotes from multiple companies.
• Get quotes for varying coverage levels.
• Get a quote for different deductibles. ($500, $1000)
• Most companies offer multiple car discounts.
• Maintain a good driving record.
• Drive fewer miles annually.
• Safety devices such as antilock brakes, air bags and security systems