4insure

Getting auto insurance seems like such as easy task, after all it is required by state law that you be holding an auto insurance policy at all times to reduce the financial risks involved with getting in an accident. While it is true that getting car insurance is easy these days with all the various quote tools available online; not being well informed on the subject can often times cost you thousands of dollars a year.

The goal of this article is to point out essential tidbits of information, that you should know before purchasing an insurance policy. Some points are extremely obvious, while others you probably never would have thought of. I’ll start with the more obscure pieces of information first, so I don’t bore you.

1. Pay-Per-Mile - If you rarely drive you car to and from work or school, it may be a good idea to find pay as you go auto coverage. If you regularly take the bus, carpool, or ride your bike, chances are you don’t put a ton of mileage on your car. Many state now offer this type of insurance for these very situations. Car insurance companies will track your mileage by making regular in-person checks of your mileage, or they will give you an easy to install device that automatically relays your usage details back to them.

2. Credit Scores - Whether you think your credit is a good way to gauge your liability to your insurer or not, they certainly think that it should effect your premium. If you’re credit score is far from favorable, you may end up paying more for your auto insurance.

3. Your Friends May Cost You - Just because you weren’t behind the wheel or even in the car, doesn’t mean that you aren’t responsible for damages. If you lend a friend your car, and they and up getting in an accident, it is your responsibility to file a claim with your insurance company, not theirs.

4. High Speed Cars Mean High Premiums - The car you insure greatly effects what you will have to pay as your premium. The speed of your car isn’t the only thing taken into consideration either. Safety ratings, size, and the demographic that drives a particular car, can all effect what you pay, in both positive and negative ways.

5. Get Multiple Quotes - This is the best way to ensure you are getting the best price for the coverage you are receiving. Going directly to an insurance companies office will give them the idea that you don’t plan to shop around, and will often give you a higher than usual quote. An easy way to avoid this is by getting online quotes. This way you can get multiple quotes at the same time without shady sales tactics.