Saving money by better understanding your auto insurance coverage options

Online Insurance According to a news release issued by the Insurance Information Institute has shown that consumers purchasing auto insurance for the first time, or who are renewing an existing policy, should contact their agent or company rep to ensure that they are receiving the coverage that they need and at the best possible rate.

Accomplishing this requires the consumer to educate him or herself at least a little bit about the various coverage options that are available. One of the best ways to obtain this information is simply by asking questions to the insurance company representatives or your insurance agent.

After all, the final premium is tallied based on a number of different factors. This includes issues such as an individual’s driving record, where he or she lives and parks the vehicle, that individual’s age and gender, how much the car is used, and the amount and type of coverage that is selected.

In order to make sure that the correct policy is chosen, and that it is obtained at the right price, consider the following tips:

• Comparison shop among several insurance companies, as coverage levels and prices vary from one to the next. Obtain at least three quotes before making a final decision.

• Before buying a car, find out how much it will cost to insure it. The vehicle itself has a great deal to do with the price of insurance premiums to cover it.

• Choose a higher deductible. The higher the deductible, the lower the premiums will be for collision or comprehensive coverage. Just make sure that you have put aside enough money to cover that deductible in case you ever need to make a claim.

• Choose lower coverage for an older car, or consider dropping optional coverages.

  • Example: if you have an extra car or access to a vehicle that can be used in case your car is in the shop, consider removing rental car reimbursement coverage.

• Ask for every possible type of discount.

For more information on California insurance rates, coverage information and more.

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