Auto Insurance Buying Do's and Don'ts

When purchasing auto insurance, there are a number of do's and don'ts that can mean the difference between paying high or low premiums and paying for too much or having too little coverage. If you want to make buying auto insurance as painless as possible, read through our do's and don'ts and keep them in mind when you're ready to shop.

Do's and Don'ts of Buying Auto Insurance

When searching for the right auto insurance company and the best rates, there are several important do's to consider. Do:

• Research the insurance companies you are interested in
• Get at least five solid insurance quotes from a variety of providers
• Get quotes on a variety of coverage amounts
• Supply current and accurate information about your driving record

Research the insurance companies you are interested in

Insurance companies have the right to access everything from your credit report to your driving record. As a consumer, you have a right to research the insurance companies as well. You have access to companies' financial ratings and reviews from consumer reporting organizations such as the Better Business Bureau. If an insurance company has a shaky financial rating or an unacceptable number of bad reviews, you might want to move on to the next provider on your list.

Get at least five solid insurance quotes from a variety of providers

Even if you do decide to use the same insurance provider that you currently use for your home and/or life insurance, it might be worth it to compare auto insurance quotes anyway. There's no need to take the first offer you receive, because the next company could offer an even sweeter deal. Because auto insurance can account for a big chunk of your budget, shopping around before settling on a rate could lead to big savings in the long run.

Get quotes on a variety of coverage amounts

Opting for your state's minimum auto liability coverages could be detrimental to your financial health, so it is important to check out all coverages for maximum protection. Talk to an insurance provider about the amount of coverage you really need, and compare rates for those coverages.

Note: It may also be useful to get a variety of quotes on a variety of deductible amounts as well. The higher the deductible, the lower your premiums will be.

Supply current and accurate information about your driving record

If you do not provide accurate details about your driving history, you will not receive accurate insurance quotes. Insurance companies will verify your driving history and determine your rates accordingly.

When purchasing auto insurance:

• Don't forget to read the fine print
• Don't mistake quotes for the final rate you will pay
• Don't be enticed by the cheapest quotes (could equal limited coverage)
• Don't purchase redundant coverage
• Remember that not all insurance companies offer the same products and coverage options
• Don't forget to familiarize yourself with your state insurance laws

For information about auto insurance laws in your state, contact your state insurance department. Click here to visit the National Association of Insurance Commissioners (NAIC) for a directory of state insurance websites.

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