It makes intuitive sense, but Consumer Reports magazine recommends that everyone buys the best auto insurance they can afford. What isn't as clear is what makes one car insurance policy better than another. Does a higher price mean a better policy? Not necessarily. In fact, you may be paying twice as much as your neighbor for the same coverage. The best way to find cheap car insurance is to compare quotes online; that way you can compare apples to apples to get the best deal.
It helps to know what coverage you must have and what coverage is optional. You must have bodily injury liability insurance, which covers the medical and legal expenses of victims of an accident that is your fault. You should have coverage that will pay at least $100,000 per person and $300,000 per accident. If you have considerable assets, you may want to increase the liability coverage.
Property damage coverage pays to repair or replace another person's vehicle or property that you damage. Requirements vary by state, typically ranging from $10,000 to $25,000. You can better protect your assets by having coverage of $100,000 or more.
Coverage for uninsured and underinsured motorists covers medical and other costs for you and your passengers when a hit-and-run driver or someone with little or no insurance causes the collision. You must have this, and should buy the same amount of coverage as you have for bodily injury liability.
Whether to buy collision and comprehensive coverage depends largely on the value of the car. Collision coverage pays for repairing damage to your car whether or not the damage was your fault. Comprehensive covers your car if it is stolen or if it's damaged by a natural event such as a hurricane. Collision and comprehensive coverage comes with a deductible, which is the amount you must pay out of pocket before the insurance kicks in. The higher the deductible, the cheaper the auto insurance will be. Choose at least a $500 deductible. As your car ages and its value goes down, you should reevaluate whether it makes sense to carry collision and comprehensive coverage.
If you don't have good medical insurance you might want medical payments coverage, which covers your medical bills and your passengers', no matter who caused the collision. Your state may require you to have personal injury protection, which reimburses you for lost wages and in-home health care.
You may be able to save money on your insurance by grouping your car and homeowners insurance with the same carrier. Insurers may reward you with a lower rate for being a longtime customer. Also, in some states you can lower your premium by taking a defensive driving course. Airbags, antilock brakes, and alarm systems can also win you savings.
Of course, being a good driver and not submitting claims will save you money on insurance. Before you put in a claim for a little fender-bender find out how that claim will affect your premium; it may be cheaper to pay for small repairs yourself.
You have lots of choices with auto insurance. To get the cheapest insurance, compare costs from several companies online and buy only the coverage you need.
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Chris Robertson is a published author of Majon International. All Rights Reserved. Copyright 2011 (Wed Jan 06 2010) Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource internet marketing web site at: http://www.majon.com
