Car Insurance: How To Compare Policies

Comparing car insurance policies is one of the most important steps in finding quality car insurance. When you compare car insurance policies, you maximize your chances of getting the best deal, so keep this information in mind when you are ready to compare.

Shop Around

The best way to initially compare car insurance policies is to shop around.  You should be prepared to get several different quotes from different companies before deciding which one sounds the best.  You can shop in person at insurance companies, on the phone, or even online. Some websites are designed to give you several quotes at a time. These sites can provide a good starting point for your search.  Remember that you can take the quotes you receive from the websites and talk to somebody on the phone or in person about it to make sure that the quote is really as low as possible.    

Comparing Based on What You Need

Some car insurance coverage is mandatory while others are just recommended.  The laws vary somewhat from state to state and depend on whether you are financing your car or own it outright.  There are two basic types of coverage that are required in every state: property damage liability and bodily injury liability. Property damage liability covers any damage you do to someone else’s property while bodily injury liability covers you if you are sued for injuring someone else in an accident.

Non-manditory insurance includes personal-injury protection (PIP) to cover personal medical bills and some lost wages; coverage if you are hit by an uninsured driver or driver whose car insurance does not cover all of your costs; towing and service/rental car reimbursement covers you if your car requires towing and helps you pay for a rental car while your car is in the shop.  You need to decide if you need any of this non-required coverage and what price you are willing to pay for each service.

Keep in mind that some of them may be covered already, for example, if you are a member of AAA or another auto club, you do not need to buy towing service from your car insurance agency.

Discounts You Should Consider

You should always try to use as many discounts as you can when comparing car insurance policies. You should talk to the car insurance company to find out which discounts you qualify for.  In general, when comparing policies, the agency that is able to offer the most discounts may turn out to be the best deal for you all around.


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