How to Shop for Car Insurance

A majority of people shop for car insurance wrong. They call the number they see on TV, or go wherever their parents go, and leave it at that. Very few people take the time to figure out what they actually need for car insurance, and even fewer people take the time to shop for car insurance and get the best price. They might call one of those car insurance companies that claim to tell you’re their competitors prices, but that’s about it. Be sure to know what the types of car insurance are, which type(s) you need, and that you’re getting the best price.

Before you even consider shopping for car insurance, you’ll need to figure out what type(s) of car insurance that you need. In most states, you are required to at least have liability insurance. Liability insurance is insurance that will pay anyone that you injure while you’re driving. A liability policy would kick in if you hit somebody with your car, or damaged some property due to careless driving.

If you have an older car that’s worth less than $5,000 or so, chances are liability insurance is all you need. Because of the cost of the insurance relative to the price of the car, getting any other type of insurance really just doesn’t make whole lot of sense.

If you have a car worth more than $5,000, you’ll want to look at getting collision and comprehensive insurance. Collision insurance will pay to fix your vehicle if you get in an accident. Comprehensive insurance covers risks as damage to your own vehicle caused by theft, vandalism, or fire.

You might also consider uninsured motorist insurance, this will pay you if you get in an accident that’s your fault, and the person who hit you doesn’t have insurance. There are a lot of people who aren’t doing their due diligence and driving without car insurance, so if you have something worth protecting, uninsured motorist insurance is a must!

After you decide what types of car insurance you need, you’ll want to find the best price. You shouldn’t just go to a place such as progressive which claims to offer competitor’s rates. When I entered my own information, unsurprisingly, Progressive told me they had the best rates! Companies that offer insurance rates for other companies have no incentive to be accurate and honest about the prices for other companies, so don’t consider what one company tells you about another to be an accurate quote.

There are two good ways to shop around for the best price on car insurance. The first is to visit an independent agent, make sure it’s an independent agent and not an agent that just sells for one company. Independent agents are professionals that can shop around through special means between companies and find you the absolutely best price for your insurance. They’ll also let you know about what discounts you can get, be able to advise you on what types of insurance you need, and more.

If you don’t want to go visit an independent agent for your car insurance, you can shop online. You should check out multiple sites when shopping for your car insurance. Just figure out what type of insurance you need and enter the information on a few different car insurance company’s online quoting systems.