When it comes to car insurance, many people pay more than necessary because they don’t do any research or take advantage of discounts when choosing an insurance provider. But with so many car insurance companies claiming to have to best rates, who do you know which one to go with?
You will need to determine how much coverage you need for your vehicle before you start shopping for car insurance. Each state requires every driver to attain a minimum amount of liability insurance. In California, the minimum requirement is (in thousands of dollars) 15/30/5. This ratio refers to bodily injury liability for one person, bodily injury liability for all persons involved, and property damage respectively. If you are leasing or financing, the lien holder may require you to obtain a certain amount of coverage as well.
After you figure out what type of coverage you need, let the research begin. Pick up the phone and call your local insurance providers to see what kind of rates and discounts they offer. Next, go online and see how the rates of internet insurance companies compare. Many people assume they will find better deals online, but when it comes to car insurance, this isn’t always the case so keep an open mind. Also, it wouldn’t be a bad idea to give your current provider a call to see if they can offer you a cheaper rate.
The internet makes it quick and easy to get instant quotes online. However, don’t be quick to hand out your information to every website you come across. Multiple inquiries can negatively affect your credit score. Instead, find a site that will compare the rates of different insurance companies to help you narrow down your choices. Don’t forget to ask friends and family for recommendations as well.