Three Easy Steps To Becoming An Auto Insurance Expert

For some people, finding the best auto insurance company can be likened to finding a needle in a haystack because they may not know the right questions to ask. As a result, they randomly select an insurance company and wind up being taken advantage of by unscrupulous agents. To prevent this from happening to you, the following three steps will show you how to get the best coverage at the best rates based on your needs:

Step 1: Know the basics

The “big three” of auto insurance policies are personal injury protection, bodily injury liability and property damage liability. As suggested by its name, the purpose of a personal injury protection policy is to help cover the cost of medical bills for you and anyone else who happens to be in your vehicle after a wreck. Liability insurance policies, on the other hand, helps pay the medical bills of the person or people you hit and repairs to his or her vehicle. Comprehensive plans cover the cost of damage to your vehicle caused by uninsured or under-insured drivers, animals, inanimate objects and theft.

You can contact the National Association of Insurance Commissioners ( to find out what the minimum auto insurance requirements are in your state. Keep in mind that minimum coverage is just that – the minimum. Therefore, a 15/5/15 policy, for example, may or may not do much to cover medical bills, should you be seriously injured in an accident. One way to determine how much coverage you need is to assess the value of your property. For instance, if you drive an older car, your state’s minimum may be plenty. On the other hand, if you have a new car or if you regularly drive in high-traffic areas where accidents are more likely to happen, then you will want an auto insurance policy that provides much more coverage.

Step 2: Don’t be afraid to shop around

Due to an unstable economy and record unemployment, some individuals may feel that they have to take what they can get when it comes to auto insurance because of bankruptcies or other credit issues. While some insurance companies may not offer you coverage because of your credit history, there are still a number of insurance companies who are willing to work with clients who have less than perfect credit. Websites such as and will allow you to click a tailor-made auto insurance policy into existence within minutes.

Step 3: Don’t let gotchas get you

Be on the lookout for vaguely-worded items in your contract before you sign it. For example, perhaps you were initially told that you qualify for discounts based on your age, driving record, etc., but you are unable to find that information in your contract. If your prospective insurance agent fails to answer your question(s) to your satisfaction, this should serve as a red flag and you would do well to find another insurance company.

So there you have it. By following these three steps you will be able to make more informed decisions about auto insurance.

Laura Ginn took out her first car insurance policy ten years ago.  She has since made sure to regularly compare the prices of providers to ensure she doesn’t pay too much for her insurance.

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