Compare when Buying Auto Insurance

Buying a car is a big expense. You'll be taking on monthly payments for five to seven years to in order to have what you hope will be reliable transportation. And while you may think the car payment is more than enough to deal with each month, you'll also automatically receive another car-related expense that you'll have to take care of – car insurance.

Although there are literally thousands of companies offering their services, choosing and buying good car insurance doesn't have to be very difficult. There are some details you may want to think about before you actually purchase the car; others can be dealt with after you've made your vehicle selection.

Before you buy the car

If you have a budget that you're working within for your vehicle and auto insurance, you need to know which cars are going to fit comfortably into both categories, and which ones will cause your wallet or purse to groan painfully. Some cars are considered red flags by the insurance industry, and will be much more costly to insure. For instance, while you might rightly expect any Lexus or Mercedes models to be an expensive insurance proposition, so are the Acura RSX, Dodge SRT-4, Nissan 350Z and the Honda S2000. The reasons behind their higher insurance expenses range from steeper repair costs to cars that are more likely to be stolen or raced. So, before you make your car purchase, call a few insurance companies and ask their rates for the vehicles that you're considering.

Selecting your auto insurance

Once you've settled on a particular vehicle, it's time to choose the right car insurance. First, you need to know what type of coverage you need to legally drive the car. This varies by state, but you can usually find the information online, through your state's insurance office or the Department of Motor Vehicles. Any insurance company that you're interested in should also be able to tell you what's required in your area.

Needless to say, the more coverage you want, the more it's going to cost you. The key to auto insurance is finding an amount of coverage you're comfortable with (should the unthinkable happen) that also has a user-friendly premium.

One of the major variables that affect your insurance rate is your chosen deductible. This is the amount of money that you agree to pay out-of-pocket before the insurance will begin footing the bill. Many people don’t want to pay any deductible, but if you consider the cost can be a difference of $20 to $30 a month or more between a $250 deductible and a $500 deductible, the savings in the monthly payments will offset the extra deductible amount.

Above all, diligently compare companies and policies. Also, don't forget to ask about discounts for safety features in your new car, a safe driving record, driver's training or any other programs that may be offered to help lower your cost. It may take a little time on the phone or online, but the results will be well worth your effort. Eventually you'll find the coverage you want at a price you can afford.