Owning a car means owning a responsibility - regular oil changes and other maintenance.  Filling the car with gas and washing it are other things every owner usually does too.  However, the most important responsibility in regards to owning your car is insuring it.  Every state has some type of law, which stipulates the minimum requirement of insurance you need to protect yourself in an accident. You cannot even get your car inspected or renew your vehicle tags without proof of insurance.

If you are in the market for new car insurance, there are a few factors, which could affect what type of rate you will receive.  First, your age can affect the rate and the younger you are the higher the rate! Second, your driving record is reviewed to determine if you are more of a liability on the road than others. That means speeding tickets and violations issued in an accident will count against you.  The type of vehicle you drive also can dictate what kind of rate you receive. The age of your vehicle and even the area where you live will also affect the rate you receive.

Before getting insurance for you car, you should understand the three different types of insurance policies you can purchase to protect your vehicle. 

Liability insurance protects you in case in an accident when it is your fault.  This insurance would pay for damages to the other vehicle in an accident as well as cover any medical expenses, lost wages and other injuries to the other party.

Comprehensive coverage will take care of replacing or repairing your vehicle if it were stolen or damaged in a flood, winds or fire.

Collision insurance covers repairs to your car or a fair market value replacement if you total it in an accident, no matter who is at fault.

You can purchase car insurance several ways: in person through an independent insurance representative, through an insurance branch office in your area or through an online company.  If you are a member of an organization like AARP or AAA, you have options to purchase insurance through them as well.  It is all down to a matter of several things:  who will offer you the best rate and who will have the best customer service should you ever need to file a claim.

Independent insurance agents or an insurance branch office may provide the best customer service simply because you can do business in person.  However, in order for their rates to beat everyone else’s, chances are that they will frown upon anyone with a few dings in their driving record.  An online company might offer you some great savings but you will not necessarily know how their customer service is until you have an accident. Plus, they tend to be more cut and dried.  You may not be able to tweak your insurance policy online like you could with an independent insurance agent who could tell you some of the ways to save on your policy like a multi-driver or defensive driving class discount.

With a membership organization, you will likely realize the most savings because both you and the organization have a vested interest in each other.  They want to keep you as a member so that you can continue to pay your yearly dues so they will probably even be a bit more lenient if you have had a ticket in the past that could raise your insurance rate.

Be sure to weigh all your options before signing the paperwork.  You don’t want to be stuck with insurance that will not adequately protect you when you need it.

 

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