Auto Insurance

Lets divide our discussion into three main categories: (1) Auto insurance as a Necessity, (2) Keeping rates down and (3) Conducting a comparison of auto insurances (quickly).

About Rates and Auto Insurance as a Necessity:

Auto insurance provides you a number of benefits. First, you have a liability sponsor. If you get into an accident you do not have to pay for damages. Hence, you are paying a monthly premium for the protection you get from the insurance company. However, the monthly premium will depend on the type of plan you choose.

Here’s a tip. The higher your deductible the less monthly premium you will pay for your auto insurance. You can adjust this according to the amount of deductible you are willing to pay. This, of course, will depend on your income. For example, I own a 1994 Viper and carry $1000 deductible. This has a net effect of dramatically reducing the monthly premium. Your driving record helps of course as well.

Secondly, and perhaps most importantly, auto insurance is required by virtually every state in the union. In addition to maintaining a valid operating license you must present proof of insurance when renewing your automobile license plates. The cost will be a function of the vehicle sales price and weight in most cases.

You can do some things to help keep your premiums lower. For example, having safety devices in your automobile are a plus, especially using your seat belt if you are in an accident. If you have some type of anti-theft device that makes it difficult to steal your car will generally help lower rates. And finally, if you have state-of-the-art devices such as airbags and on-board phone capability such as "On Star", then this may contribute as well.

In addition, be aware that your age and the state you live in will likely contribute to your premiums. For example, Ohio is likely to have better rates than New York. Also, the distance you drive will affect your premiums. The longer and more often you drive, the higher will be the rates.

Auto Insurance Premium Comparison:

Shopping for auto insurance can take a long time if you have to visit each one (even on the internet) individually. You first have to think about which ones you want to compare and then visit each and record notes for the various plans. All of this takes time and is tedious. Of course, even more time is consumed if you have to physically drive to each auto insurance location in order to collect information and make a comparative analysis.

As it turns out rates can vary by several hundred dollars. This is true even if the same driver, coverage, vehicle and other factors are involved! However, if you use an auto insurance comparative website you can get your information very quickly.