Shop For Car Insurance

The more you know, the more you save

by Dill Financial

It was not until I became a licensed insurance agent that I discovered how dramatically insurance rates can vary from one company to another. As I learned the ins and outs of the industry, it was painful to realize just how much money I could have saved if only I'd known then what I know now.

Here are a few insurance pointers from my own personal and professional experience. I hope they will be of help to you sooner rather than later, as you shop for car insurance.

Know thy coverages

Before you renew or buy your next insurance policy, it's important to understand the coverage your policy provides:

• Liability Coverage protects you from lawsuits in the event that you are at fault in an accident. It pays for any injury you may cause to the other party, as well as any damage to their car.
• Medical or Personal Injury Protection (PIP) insurance covers you and your passengers for injury from an automobile accident.
• Uninsured and Underinsured Motorist Insurance provides coverage for you in the event that the other driver is at fault, but does not have insurance or does not have enough insurance coverage.
• Comprehensive and Collision Insurance cover you for damage to your car. Collision covers damage from an auto accident; comprehensive covers any non-accident damage to your car such as theft, vandalism, fire and hail.

Do not buy more or less insurance than you need

Legally, you are only obligated to carry your state's mandatory minimums of coverage. However, it is very important to consult with your agent to determine the best insurance coverage for you, so that you do not end up over-insured or under-insured. Your age, vehicle, driving record and income are some of the factors that go into choosing the right coverage.

Compare apples to apples

When shopping different companies, get quotes for the exact same coverage you desire, to get a true estimate of which insurer really offers the lowest rate.

Give accurate information to get an accurate quote

Your insurance quote is only as good as the information you give. Be straightforward in your responses to requested information, particularly your age, driving record and credit rating. This will enable your insurance agent to get you the best possible rate. What's more, this information will be verified before a policy is issued - your rate will be hiked if you have forgotten or left out anything.

Make sure you are getting all the discounts available

Be sure to ask your agent if you are getting every single discount available to you. Find out if the company offers discounts for airbags and automatic seatbelts, anti-theft alarms, anti-lock brakes and VIN# window etching. You may also qualify for a discount if you have more than one car on your policy, if you insure all your cars and your home with the same company, and if you pay for the policy in full upfront. Going to driving school (for young drivers) or taking a safe driver course may also help lower your rate.

Find out and compare the companies' A.M. Rating

An insurance company's A.M. Rating evaluates its ability to pay claims. What use is a cheaper policy if the company later declares bankruptcy and can't pay your claim? At best, buy from an A-rated company - the more A's in the rating the better.

The bottom line

Insurance knowledge is power. May the power be with you!

It used to be we could depend on the reputation and reliability of North American cars to meet our standards - but could it be the times are changing? Here in the U.S., overseas models are continuing to rise in popularity. Find out why!

If you love your car, you’ve got treat it right – stock will never do for your hot wheels! Whether it’s for performance or just for the look, aftermarket parts can turn that car you just brought home into your own pimp ride.