How to Buy Car Insurance

How to Buy Car Insurance

How to buy car insurance follow these helpful hints before you sign on the dotted line you will need a credit report knowledge of local law careful consideration and competing quotes optional extra coverage step 1 check your credit report for errors insurance companies use your credit rating to help determine your rate request a copy of your credit report by logging on to annualcreditreport.com or by calling 187 three two two eight two two eight you are entitled to one free copy per year step two find out the minimum car insurance required by law on your state's Department of Insurance website only New Hampshire and Wisconsin don't require car insurance but since they do require people to pay for accidents they caused many people carry it anyway step 3 consider buying more liability insurance than your state requires consumer groups recommend a minimum of $100,000 for injuries per person $300,000 per accident and a hundred thousand dollars in property damage liability most American car insurance does not cover you if you're driving outside the United States some policies are valid in Canada and Mexico but check if your coverage meets those country's requirements step 4 collision coverage pays for the repair or replacement of your vehicle if your car is more than five years old or worth less than $4,000 it may not be worth it step 5 comprehensive coverage covers you if someone steals your vehicle or if it's damaged by a windstorm fire hail or vandalism but if your car is more than 12 years old unless it's a valuable vintage set of wheels the cost may outweigh the potential step 6 weigh the advantage of other add-ons such as extra medical coverage emergency roadside assistance and glass breakage consider buying uninsured or underinsured motorist protection even if your state doesn't require it this provision protects you if someone with no insurance causes a collision with you step 7 shop around get a general quote from an insurance company's website by plugging in basic information like your zip code and car model some websites offer quotes from several companies so you can compare rates just be aware that these quotes reflect a bare-bones policy with no add-ons step 8 once you choose a company ask if you're eligible for discounts having airbags anti-lock brakes or an anti-theft device can reduce your rates so can a clean driving record carpooling a car with low mileage and good grades if you're a student drivers between 50 and 65 may also qualify for discounts step 9 choose the highest deductible you can afford in order to pay the lowest premium possible step 10 once you decide on a policy pay the entire premium up front to save the monthly service fee did you know an estimated 14 percent of drivers in the US are uninsured