How to Select Car Insurance

By Cellina LaForey

Overview

Since car insurance is a mandatory coverage, it is important to select car insurance that best fits your needs, complies with the state requirements and fits within your budget. There is no need to accept the first insurance quote that is offered to you. The number of insurance agents and insurance companies looking for your business may seem overwhelming. Don't let them pressure you. Take your time to ensure that you select the right car insurance.

Car

Step 1

Contact several insurance companies. Whether you elect to call an insurance agent on the phone or shop online, it's best to contact several insurance companies to get alternative quotes. The more quotes you receive, the better the chances of selecting the right car insurance.
Step 2

Provide the same underwriting information to each insurance carrier. To truly analyze your policy, make sure that each quote is based on the same information. Therefore, it's best to gather the information beforehand and submit the same criteria to each company.

Car Insurance

Step 3

Review the auto insurance company's financial standing. Ask the insurance company for its A.M. Best rating or Moody's rating. Before asking the question, however, visit both Websites to see how it rates and grade the financial stability of insurance companies. That way you'll be able to judge if the insurance company's rating is up to par.
Step 4

Compare the policies. An apples-to-oranges comparison will only hurt you in the long run. When it comes time to select car insurance, make sure the policies are being compared on an apples-to-apples basis. If there are differences in each policy, speak with the insurance agent to see if he can mirror the competitor's coverages.

Select Car Insurance
Step 5

Become familiar with the claims and policy maintenance procedures. Most insurance companies allow their policyholders to make changes online. However, if you are not comfortable with online transactions, make sure to select a car insurance company that has a live customer service representative available when you need one.
Step 6

Don't be afraid to ask the insurance company to reduce the premium. Sometimes there are credits that can be applied to your car insurance policy that can lower the premium. Find out if there are discounts for being a member of AAA, AARP or even a schoolteacher discount. If you don't ask, you'll never know.

Auto insurance

Skill: Moderate
Tip: If you have a renter's or homeowner's insurance policy, you can save money on your car insurance if you place all of the coverages with the same insurance company.

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