Factors to Consider When Purchasing Auto Insurance

By Compuquotes Team on March 27th, 2008
Auto Insurance

Not many people truly enjoy researching auto insurance or switching over to a new company because they have moved or are buying a new car. While there is no way to make searching for auto insurance fun, you can do a few things to make it easier.

Most people think auto insurance is merely liability and full coverage, with nothing in between to add on or lower. In truth there are so many different options in between that you should learn about and consider prior to renewing or changing your auto insurance. There are three things for you to consider when investing in an auto insurance policy that include the price, coverage, and company.

While price is a main factor you don't want to simply go with the cheapest policy you can find, but keep in mind the most expensive doesn't ever mean better. The only way to know what is a good price and for what types of coverage is to do your research. There are some companies that may offer someone a better rate than you based on a million different factors. There are different companies that have a target age group or risk group that may be better for your grandma or friend, but not you.

You should get about five to ten quotes to get a decent idea as to what is a good offer for you. A great place to get different companies information is to check out the yellow pages where they are localized according to your specific area, and includes big name companies as well as little local companies. The best place to get fast and free quotes is to jump online. The auto insurance industry has really made the online quote niche their thing, so the companies are constantly trying to make their websites more user-friendly.

The second factor you must consider when you are looking for a new auto insurance policy is the amount of coverage you need and are being offered. Your coverage will vary from company to company so knowing the basic coverage that you need is essential. The coverage starts with liability which will protect you in the event that you hit and cause injury to another person or damage to their property.

Liability coverage includes two components including bodily injury and property damage. Most states have a minimum requirement for this coverage, but it is often wise to get as much as you can afford.

Medical payment coverage will pay a flat amount to every person that is injured regardless of fault. This amount can range anywhere from $500-$5,000 and is meant to offset the immediate out of pocket expenses that are caused by the accident.

You also should consider investing in uninsured and underinsured motorist protection which will cover you and your passengers in the event that you are hit by a driver who does not have insurance or an adequate amount of insurance to cover the damages or injuries.

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