Starting by figuring out the amount of
coverage you need. This varies from state to state, so take a moment to
find out what coverage is required where you live.
Once you know what’s required, you can
decide what you need. Some people are quite cautious. They base their
lives on worst-case scenarios and insurance companies love that.
Insurance companies are in the risk business, and they know a
policyholder’s likelihood of being in an accident, as well as how likely
it is for a car to be damaged or stolen.
Step 2: Review Your Current Insurance Policy
Read through your current policy or
contact your auto insurance company to get the information you need. Jot
down the amount of coverage you have now and how much you are paying
for it. Take note of the yearly and monthly cost of your insurance,
since many of your quotes will be given both ways. Now you have a figure
to beat.
Step 3: Check Your Driving Record
You should know how many tickets you
have had recently. If you can’t remember how long that speeding ticket
has been on your record, check with your state’s department of motor
vehicles. If a ticket or points you earned are about to disappear, thus
improving your driving record, wait until that happens before you get
quotes. Nothing drives up the price of insurance like a bad driving
record.
Step 4: Solicit Competitive Quotes
Set aside at least an hour for this
task. Have at hand your current insurance policy, your driver license
number and your vehicle registration. You can begin with online
services. If you go to an online site to get a quote for an insurance
rate, you can type in your information and begin to build a list of
companies for comparative quotes.
Step 5: Gather Quotes and Company Information
While you’re researching companies, take careful notes so you can easily make price and coverage comparisons. Keep a list of:
- Annual and monthly rates for the different types of coverage. Make sure to keep the coverage limits the same so you can make apples-to-apples comparisons for cost and coverage.
- The insurance company’s 800 telephone number, so you can get answers to questions you couldn’t find online.
- The insurance company’s payment policy. When is the payment due? What kinds of payment plans are available? What happens if you’re late in making a payment?
