Determining Your Car Insurance Basics

If you own or are buying a car then you know that you must have car insurance. In most states it is a legal requirement.  Before you buy, it is helpful to know how to buy car insurance and the best auto insurance for you and your lifestyle.  The basic factors to take into consideration are the kind and age of car you have, your driving record, your budget and whether your car is financed or owned outright.  These factors will all play a role in your premium amount and the coverage you will choose.

[pullquote]Remember to check state laws so you are in compliance with the laws of the state your vehicle is registered.[/pullquote]

The first step in how to buy car insurance is to determine the type of coverage you need.  Your car insurance will be a combination of different types.  Liability is the basics that everyone must have.  Each state will set their minimum but you can choose to raise the limit.  This covers accidental bodily injury and property damages to others. The next types of auto insurance are collision and comprehensive.  They cover damage to your vehicle and damage that does not occur in an accident such as theft, fire and weather related accidents.  If your vehicle is financed, the lender will require these two coverages in addition to liability.

[pullquote]Check the cost of auto insurance before you make an auto purchase. That way you are sure to stay in budget.[/pullquote]

Additional coverage types when considering how to buy auto insurance are medical coverage that pays for medical expenses, personal injury protection, uninsured and under-insured motorist and rental reimbursement.  Your car insurance policy will be a combination of the coverages you choose.  Your state will require a minimum of coverage but most people choose higher than the law requires because they want to be covered for as many possibilities of loss as they can.  Your budget will dictate this as well. An additional factor to the premium you pay will be the deductible you choose.  Your deductible is how much you will be required to pay before the policy takes over.  A $500.00 deductible is the most common.

[pullquote] A good car insurance policy offers peace of mind driving.[/pullquote]

Once you have determined the types of coverage you want and know your budget your next step in how to buy car insurance is to get price quotes.  You can call a local agent but it is much better to get several online car insurance quotes.  Type insurance quote into the search box and you’ll have the opportunity to choose a site that will only require you to fill out your information one time and receive quotes from several different companies.  Once you make your choice you will pay the required amount and your new auto insurance will be in effect.

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About the Author:

Ken Geers is the Editor-in-Chief of Sporto Motoring Auto News and Reviews. A must have publication for auto enthusiasts. Read his thoughts and the thoughts of others regarding auto related topics in Editorials, Reviews, and Articles.

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