| Auto insurance is a legal requirement in every US | | | | on the value of your car. Guidelines usually |
| state and Canadian province. Costs are continuing | | | | suggest that if your car is worth less than $2,000, |
| to rise. How can you reduce some of these | | | | it won't be worth it to buy comprehensive and |
| expenses and still get the best coverage? | | | | collision. |
| First, get multiple quotes from the Internet and | | | | If you own a $50,000 car though, it would most |
| your neighborhood broker. You can shop for | | | | certainly be worth it to pay an extra $200 |
| different types of quotes from a direct-sell | | | | annually or so to insure that your car will be |
| insurance companies and offline and online brokers. | | | | replaced if you get in a serious accident. |
| Auto insurance that is cheapest isn't always the | | | | If you're driving a used car from 10 years ago, |
| smartest move. Ask yourself, is the company | | | | dropping collision and/or comprehensive coverage |
| financially secure? Are they reputable and will they | | | | can usually give big savings. |
| pay out if you have to make a claim. | | | | Run through various scenarios such as if I totaled |
| The first piece of the policy is almost always | | | | someone else's car, will my insurance cover it? |
| liability insurance. If you only have minimum liability | | | | How much will I have to pay out of my own |
| coverage and you injure someone, their attorney | | | | pocket? |
| can go after your personal assets. Many insurers | | | | Paying a higher deductible can also keep your |
| feel that minimum liability is a gamble. In fact, that | | | | policy costs down. Remember, the deductible is |
| is why it is often only a little more money for | | | | what you pay out of own pocket when making a |
| more protection. | | | | claim. |
| Auto insurance varies on car types. Coverage for | | | | Buying a low mileage car and insuring with a good |
| a sports car is very different from insuring the | | | | driving record, will all help bring insurance rates |
| family sedan or mini-van. | | | | down. Don't speed, don't drink and drive and you'll |
| If you are looking to buy a car, consider buying a | | | | save. |
| car that "looks good" to insurance companies. For | | | | Single, young males under the age of 25 get the |
| instance, insurance companies know what kinds of | | | | short end of the stick in this deal so if you fall into |
| cars are prone to problems. They also know what | | | | this category make up for this price increase by |
| kinds of cars are most often stolen. If you | | | | purchasing a more sensible vehicle. Consider |
| haven't purchased your car yet, find out what | | | | delaying the purchase of that cherry red Mustang |
| cars make this "good list" among auto insurers. | | | | until after you're 26 and married. |
| Consider how much coverage you really need to | | | | Keep yourself adequately covered. You can get |
| buy and the price each of these coverages will | | | | away with having the bare minimums required by |
| pay. Think about collision and comprehensive | | | | each state to keep you in compliance with state |
| coverage, which is how much you will be | | | | laws, but that may not be enough to protect |
| reimbursed for the loss or destruction of your | | | | your assets if you have a major incident. |
| vehicle. Are you carrying $30,000 worth of | | | | Insurance experts recommend that you review |
| collision coverage for a $12,000 vehicle? | | | | your insurance policy often and thoroughly. |
| If your car was totaled, would you be able to | | | | Many insurance companies offer discounts for |
| afford to replace it? If not, you will want | | | | anti-theft devices and advanced driver-training |
| comprehensive and collision coverage. | | | | courses. |
| The decision to buy this coverage is usually based | | | | |