Auto Insurance is a requirement, not an option. But you should not limit yourself with that is initially offered- there are a lot of auto insurance companies that will offer you different plans and coverage, and you need to check them all out. But before you start shopping for auto insurance plans, you need to look at the types of auto insurance you will need, such as:



Liability Coverage

This is required by law and will cover the other driver’s injury and property damage when you are found to be at fault. This is the cheapest option to buy, but depending on your needs, you might need a more comprehensive plan.

 

Top Auto Insurance Companies

 

Collision Coverage

This plan covers the damage to your vehicle in case of an accident. This includes accidents you are at fault, and some will also cover different scenarios.

 

Comprehensive Coverage

This type of auto insurance will cover almost any car related incident, except for damage resulting from a car crash. This kind of coverage pays for severe weather, auto theft, or other minor repairs. This is to complement your collision coverage.

Both the comprehensive and the collision coverage auto plans are a bit expensive but sometimes necessary. There are also situations where they may not be necessary, such as if you drive an old vehicle that is fully paid for and can easily be repaired or replaced. You can just buy liability insurance for this. The same recommendation could be given for a vehicle that you hardly use. Auto insurance companies also offer additional coverage, some are required in certain states, but some are optional. Auto insurance add-on plans are uninsured or underinsured motorist coverage, personal injury protection, rental car coverage and roadside assistance. Now that we have finished understanding the basics in classifying the types of auto insurance let us talk about what you should do before buying auto insurance. Remember these tips to help you get great deals:

1. Shop Around

Always look for better options. There are online tools that can help give you quotes from multiple auto insurance companies to save time and effort spent calling and talking to agents. Remember that your rate will vary depending on your situation so do not rely on recommendations from other people.

2. Look For Bundles

Look for discounts on added policies to save money. Also, make sure these are add-ons you need.

3. Boost Deductibles

A deductible is any out of pocket payment you need to pay before your auto insurance provider pays for the rest of your payables. Higher deductibles sometimes lead to lower monthly payments. Just make sure that you have that money with you and it will not hit your cash flow should you need it.

4. Use A Low-Risk Car

Skip the mid-life crisis sports car phase if you can so you won’t have to pay a high rate on your auto insurance. Auto insurance com panies will look at how fast your car can go, how tempting it is to be stolen, and other such issues in raising your figures.

5. Drive Safe

The number of speeding tickets you get can raise your auto insurance premiums, so slow down and drive safe.

6. Maintain Good Credit

As unfair as it is, your credit score does affect how high your premium will be, even in auto insurance. The higher your credit is, the more likely you’ll get lower rates. This does not apply to those who live in California, Hawaii, Massachusetts and Maryland.

 

Insurance Companies Compared

We’ll show you some auto insurance companies that operate on a nationwide scale, to see the different plans and rates. We will base the quotes from a married woman in her 40’s who lives in Ohio and drives a 2006 Honda Odyssey. State minimum law for auto insurance policies is $25,000 in bodily injury liability per person, $50,000 bodily injury per accident, and $25,000 in property damage. The same amount can be found in uninsured and underinsured bodily liability, plus collision coverage and comprehensive coverage with a $1,000 deductible. Let’s look at the US’s best auto insurance companies have to offer:

1. Nationwide

Monthly payment for the state minimum is $28 for minimum and $51 a month with $1,000 deductibles. They offered one of the lowest rates and didn’t take long to provide a quote.

2. State Farm

The quote given was also small. The minimum rate was $33 for coverage, $35 to add uninsured and $63 with $1,000 deductibles.

3. Travelers

We got $31 for the minimum, $34 to add motorist liability, and $47 to include the deductible.

4. Progressive

$37 a month to pay for minimum coverage, $40 to add motorist liability, and $48 to tack on the additional with deductibles.

Since we are after getting the best rates, you can also look at places where you can get discounts on your auto insurance. For instance, driving schools have tie-ups with auto insurance companies and can give you better rates and all that you need to do is pass a defensive driving course. There are also what is called “good student discount” that are sometimes offered to young drivers in high school or college and maintain a minimum grade of 3.0. all you need is a copy of your transcript or a letter from the school. Auto insurance providers also offer safe-driver discounts that apply to those who have clean driving records.

If you are a student who attends college and lives more than 100 miles away, you can also get a resident student discount for when you use it for vacation (not for going to school) or elsewhere. Active duty and veteran discounts are also available. If you choose to autopay your monthly payments or pay upfront, they can also offer discounts. There are a lot of discounts or features that you can get from your auto insurance provider, don’t be shy to ask.

 


Disclaimer: Our service is not intended to be, nor should it be construed as financial advice. We help our readers make informed decisions via impartial information and guides. Where appropriate, we may introduce partner companies who can provide services relating to financial products.

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