What to Know before you Buy Car Insurance

June 18, 2010 by  
Filed under Car Insurance Tips

Car insurance policies have a lot of legal language that most of us don’t understand. What you want to look for is what you are getting (coverage) compared to what you are paying (premium). Here are a few things you need to look at when you are looking for car insurance:

Rating Territory – Where you live ultimately has a lot to do with how much your premium is going to be. Living in a high crime area or big city is going to up your insurance premium.

Liability Insurance – Liability insurance protects you when you are liable in an automobile accident. This is valuable protection for you because this is the portion of the possible that insures you against the highest risk and financial loss. Liability claims because of death and injury are by far the largest.

Physical Damage Insurance – This portion of the car insurance policy pertains to your vehicles. It is a good idea to self-insure in this area by purchasing this coverage with high deductibles. Low deductibles no longer warrant the high premiums for the protection afforded. High deductibles will save you thousands of dollars over the life time of a policy.

Car Insurance Discounts – Many car insurance companies offer discounts for certain things such as; vehicles with air bags, anti-lock brakes, and anti-theft devices. Senior drivers can receive retirement discounts. Young drivers with driver training education or a certain grade point average in high school or college may receive discounts.

Things you will need when shopping around for the best car insurance rate:

The VIN (vehicle identification number) yours and any other potential drivers, drivers license #, your current policy and when it expires, how the vehicle is used (business, pleasure or back and forth for work). If you are checking on a policy for more than one vehicle make sure you have the VIN #’s for all vehicles.