How to Compare Auto Insurance Rates Like a Pro

Just a decade or two ago, shopping around for the best auto insurance was a chore akin to having a sore tooth pulled or changing the oil in your car – you had no choice except to do it, but you didn’t have to like it. Fortunately, the Internet now provides you with immediate, at-your-fingertips service, so that you can compare auto insurance rates in the comfort of your own home. With a few taps of the keyboard and a click of the mouse you can have a good price on car insurance, without ever needing to leave your home.

In the simplest terms, insurance is a promise to reimburse an individual or an entity in the event of some loss, whether it is to life, livelihood or property. While it may be tempting to buy auto insurance from the first insurance provider who meets your price threshold, there are many more factors to take into consideration.

You can compare auto insurance rates, just like the pros do, if only you know what to look for, and what questions to ask.

• Know your state’s requirements;
  what is the minimum amount of medical expenses and property coverage that you need.
• How much coverage does your lien holder require?
  If you financed your car, the finance company will have its own requirements, but typically you must purchase complete insurance coverage, liability and comprehensive. What they want is assurance that, in the event of an accident, your insurance will repay the loan.
• Beyond that, how much do you personally need to protect your own assets?
  If an accident results in someone with medical expenses beyond the insurance coverage, you put your own personal home and assets at risk from a law suit.
• How much of a deductible can you afford?
  Bear in mind, the deductible and the cost of insurance coverage are inversely related.
• Does the insurance company offer a discount for completion of a defensive driving class, a good driving record, vehicle safety equipment, etc.?
• The make and model car you choose has a direct bearing on the insurance price. Insuring a Volvo is generally less expensive than insuring a Corvette, regardless of all other considerations.
• Your personal demographic will affect the price; age, gender, educational level, profession, where you live and where you work, whether or not you own a home, all of which play into the premium.

If it’s your responsibility to compare auto insurance rates, even before you get on the Internet or start making phone calls, get out a copy of your existing auto insurance policy, since it will give you all of the information you need to find the best policy out there, at the right price.