Shopping For Auto Insurance

Shopping for auto insurance. Sends shivers down your spine, doesn't it? Got any idea about what you are buying, and how you are going to get a good rate from a good company? No one else does either, but you'll find that it is well worth the homework!

To begin shopping, first understand what you are buying. On most policies, the first item is your liability to other drivers if you are ruled at fault in a car accident. Every state has a minimum set for this coverage. Unfortunately, in most states, it is not nearly enough to pay for even the smallest injury claim. If the auto insurance company doesn't pay, guess who does?

Some states sell Medical Payments, which is what it sounds like. It pays your MEDICAL bills, up to the limit. There is also a coverage called Personal Injury Protection, which covers much more; even babysitting and additional meal expenses, loss of wages, and more. But again, only for the auto insurance limit you buy.

Uninsured/Underinsured Motorist is a coverage you MUST carry, although some states, like Texas, will allow you to opt out by signing a form. Your Bodily Injury coverage is ONLY for the other guy. If the accident is HIS fault, and he carries no, or very little, auto insurance, your company will NOT pay him under your Bodily Injury limits.

Then there's Rental Reimbursement. If the auto insurance company is fixing your car, they won't pay for a rental car unless you pay the premium for it. No, it doesn't matter whose fault it is.  With auto insurance, you have to pay for this coverage to stay on the road while your car is in the shop. If you live more than ten miles from work, you might consider how far you'll have to walk!

Belonging to a select group, like military officers, government employees, or even teachers, makes you friends with the auto insurance companies that give special discounts and coverages for their select target market. Use every advantage you have!

At this time, many of the major auto insurance companies are cutting rates. You might miss out if you switch to a new company just before a lower rate goes into effect. Especially since most auto insurance companies give you discounts for staying with them longer.

But don't stop there. Take your policy to at least two more companies. Make sure they are ones you have heard of. Smaller companies do go out of business sometimes.

The most important thing is to get an 'apples for apples' quote. While it's true that rates vary, you will never know that if they don't quote what you have now. And really look at the auto insurance quote; NEVER take an agent's word for it.

Lastly, get on the web and check the chat rooms for how the lowest bidder pays claims. What good is auto insurance without peace of mind? 

So it's not so hard. It may take a little time, but you really CAN save money. Just be sure that you don't have to keep worrying about whether your new company will take care of you.