Buying some type of automobile insurance is one of the major costs of owning and operating a motor vehicle. All states require at least a minimum amount of liability insurance for public protection of other drivers and their property. A bewildering array of policies are on the market. Car owners must do a lot of homework to figure out the proper balance between cost and coverage. Lots of phone calls and reading of fine print are required to find the best policy and company for your needs.
- Figure out which general type of car insurance policy best fits your budget, coverage requirements and type of car. Call your state's Department of Motor Vehicles or Department of Transportation to find out the minimal amount of required liability coverage. Make sure your chosen policy meets the minimum if you're on a bare-bones budget. Remember that you will be left paying for damages that exceed the minimum requirement. Consider buying a higher coverage policy for your personal financial protection.
- Research the different types of car insurance policies and determine how much coverage you need and how much it will cost in premiums. Get full-coverage auto insurance for a car with a bank loan or dealer financing. They'll usually require it. Buy both collision and comprehensive coverage if you drive an expensive vehicle. Collision pays for repairs to your vehicle caused by anything you run into or collide with; comprehensive pays for damage caused by almost anything except collision.
- Make a list of the insurance companies in your area, using the Yellow Pages and/or doing an Internet search. Go to your state government's Department of Insurance website. Look under "Consumer Services for the Company Complaint Index." Check the most recent complaint index ratio ratings for the insurance companies you're considering. Compare the consumer complaint ratios of the prospective companies before you choose one. Call the insurance providers for premium quotes for further comparison. Narrow your list to a few prospects.
- Call the insurance companies you might want to deal with to get details about the policies they offer. Find out and compare the premium rates with the amount of coverage. Ask about deductible on each type of policy. Visit insurance agents, salesmen and brokers to talk about policies, customer service and details of the claim process. Talk with a customer service representative and ask a lot of detailed questions, if you're considering buying insurance directly over the phone.
- Talk to friends, relatives and people you work with about their experiences of how they were treated by their insurance companies. Get advice from mechanics, auto body shop operators and car enthusiasts on insurance companies and policies. Check the Standard and Poor ratings to see how the considered insurance companies are performing financially. When you buy a policy, ask your agent or provider about premium reductions for age, maintaining a good driving record and length of time with the company.
