How to Buy Car Insurance

Follow these helpful hints before you sign on the dotted line.

Step 1: Check your credit
Check your credit report for errors. Insurance companies use your credit rating to help determine your rate.

Tip

Step 2: Obey the law
Find out the minimum car insurance required by law on your state’s Department of Insurance web site.

Tip
Only New Hampshire and Wisconsin don’t require car insurance. But since they do require people to pay for accidents they cause, many people carry it anyway.

Step 3: Consider more liability coverage
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 $100,000 in property-damage liability.

Tip
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 countries’ requirements.

Step 4: Crunch some numbers
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: Consider comprehensive coverage
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 benefit.

Step 6: Weigh the advantage of add-ons
Weigh the advantage of other add-ons, such as extra medical coverage, emergency roadside assistance, and glass breakage.

Tip
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
Shop around. Get a general quote from an insurance company’s web site by plugging in basic information like your zip code and car model. Some web sites 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: Ask about discounts
Once you choose a company, ask if you’re eligible for discounts. Having air bags, antilock brakes, or an antitheft 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 also may qualify for discounts.

Step 9: Choose a deductible
Choose the highest deductible you can afford in order to pay the lowest premium possible.

Step 10: Pay up-front
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 U.S. are uninsured.

[BinkieMcFartnuggets]

Just go with whoever makes the funniest commercial, otherwise those companies are all wasting their time.

[funlol]

**pro-tip for getting cheap insurance** Use an independent insurance agent (not associated with GEICO, Progressive, Allstate, or any of the big guys).  You will get the cheapest rates from them because they don't have to pay a percentage of their earnings for the corporate affiliation.  My favorite place to use to compare quotes for the cheapest rates is "4AutoInsuranceQuote" (Google them), but really any quote comparison site will do.

[Keepingitrespectfulmostly.]

In the UK for years I usually use at least 3 different Insurance compare websites and at least one independent and always get a much better deal than the renewal quote. This year the renewal quote I received won and was at least a third cheaper than all other quotes on compare sites. Even the 3 regular compare sites I use alter between which one is the cheapest. Easy this year as they already had my proof of NCD.

[RGodyt]

Who is stuck in quarantine because they’re stuck at home with nothing to do

[AlfaAutoInsurance]

This video is pretty good. It's just easy to put off getting car insurance once you start looking into your credit report. There's really nothing you can do about it other than do a better job moving forward. Good video though.

[BlitzWing]

Great all around info!

Two things they should have discuss a little better is the Liability & Deductible.

Liability (Third Party Liability) coverage is probably the most important to get. It protects you if you cause damages to other people's stuff. If you don't have any and run over somebody....you'll end up getting sued & financially ruined.

Deductible is the first amount of damages on your own vehicle not covered if you're at fault (meaning you have to pay this yourself).

[EddieMars]

Nice graphics. Good flow. To the point.

[FinancialTipsChannel]

Great auto insurance tips that will help you save big. I know because I've personally used some of these to shop around and get a good rate.

[Afrocanuk]

In Canada, its illegal to be driving without car insurance. If you get caught, it will be a $5000.00 fine.

[quez]

never pay a past due amount on your car insurance, especially if you didnt get into a car accident, its not like you can go back in time and risk an accident...

[anthonycruz]

Teaching me what parents a d schools dont

[flaxtake]

i dun hv a car but i think this will hlp in future

[alberttatlock]

As long as you don't touch e-car insurance you might be ok

[glen]

total no help for young drivers a scam

[glen]

1972 ontario unsatisfied car insurance 15 bucks a tear -its fkin true .