Compare Car Insurance Rates – Save Money Without Sacrificing Protection

Automobile insurance can be a confusing subject, there is no doubt about that. With that in mind we show you why it is so vitally important that you compare car insurance rates by answering the four questions that are most frequently asked by car owners regarding online car insurance quotes and coverages.

1) How to Find the Best Car Insurance Rates – We are all trying to save money and avoid paying more than we should and automobile insurance is certainly no exception to that rule. With that in mind, you do not want to sacrifice quality coverage just to save a few dollars. As always, when you compare car insurance rates you will be able to see for yourself how various companies stack up against each other.

The things you want to look for when geting online car insurance quotes include what the premiums will be in relation to the deductible, what is covered by your policy and the quality of the insurance company itself. You must be sure that the insurance company that you are doing business with is a reputable one with an excellent credit rating. You can get that information by reading the customer satisfaction ratings compiled by JD Power and Associates.

2) What Determines My Car Insurance Rates – There are many factors that go into determining how much you are going to pay for your auto insurance. First and foremost is your deductible. The higher your deductible is, the lower your premium will be. Be warned though, you must be careful with this because if you get into an accident and you have a high deductible then you could end up paying a substantial amount of money out of your own pocket.

Other factors that determine how much you are going to pay for your insurance coverage include your age, driving record, marital status, credit rating, where you live (which is actually broken down by zip code), anti-theft devices such as burglar alarms, if your car is parked in a garage or on the street,  and how long it’s been since your last claim. Some companies will also give you a break if you have taken a driver safety course.

3) Determining What Auto Insurance Coverages You Need – First off, automobile insurance is required by law in every state in the union. Check with your state to find out exactly what the minimums are as far as insurance coverage goes. You will find at the very least that medical liability coverage is mandatory, but many states will require more coverage than just liability insurance.

Liability insurance not only covers bodily injury due to auto accidents but also encompasses coverage for property damage including vehicles and real property such as buildings, fences, poles, etc. To find out exactly what coverages are mandated by the state that you reside in simply visit the website of the Department of Motor Vehicles for your specific state.

4) What Is a Deductible – Your deductible is simply the amount that you are responsible for paying before your insurance company takes over. For example, if you have a $500 deductible and get into an auto accident where $450 worth of damage has occurred, you will end up paying the entire amount because your deductible is higher than the cost of the damage and your insurance company will pay nothing.

If on the other hand you have your same $500 deductible and get into an accident where there is $20,000 worth of damage, you will then pay the $500 deductible and your insurance company will be responsible for paying the remaining balance of $19,500. It is important to realize that the premium you pay will be based in large part by your deductible. A lower deductible means higher premium payments and conversely a higher deductible means you will have lower premiums.

A Listing of the Leading Auto Insurance Companies

• Travelers

• Farmers

• AAA

• Geico

• State Farm

• Allstate

• Progessive

• Nationwide

• Safeco

As I’m sure you realize automobile insurance is becoming increasingly expensive. You can get discounts by having multiple policies with the same company. If for example you have your homeowners and auto insurance with one company you will qualify for a price reduction on your rates.

Using the Internet is an excellent way to compare car insurance rates. Simply visit any one of the websites on the net that offers free rate comparisons and enter your information. Your information will then be disseminated to the leading car insurance companies who will then send you online car insurance quotes without any obligation.

Of course, you can also simply visit the various agents in your area and discuss with them what coverages would be appropriate for your situation. Just be careful to not let them pressure you into doing business with them or paying for things that you do not need.