Owning a car means having insurance, no ifs, ands or butts. There are many different variations of auto insurance plans for you to choose from. Read the Full Report By educating yourself on the insurance buying process, you can save money on an affordable policy that meets all of your needs. Look around and compare prices before choosing which insurance policy to purchase. Each company uses a different formula, based on your answers to their questions and previous driving records, to figure out what your insurance premium is. You will find the policy that is most affordable and best suited to you by checking into policies from several different companies. You should have a basic knowledge of insurance coverage plans when you are shopping for car insurance. A given vehicles insurance cost may be affected by a number of factors. If you are at fault in an accident, bodily injury liability coverage will cover injury and death claims, as well as legal costs. Do not spread your car insurance bill into monthly payments. If you pay it by month you are paying around five bucks more. Five dollars a month adds up! You also do not need another monthly bill. Making fewer payments is a better option. Basic coverage on your car insurance only allows the coverage to extend to the policy owner of a car. Often people will allow a buddy to use their vehicle, but if the buddy is involved in a car accident, the insurance company can deny payment of any claims. There is an additional coverage you can purchase as part of your policy that will let you loan your car to others if you choose. This option will cost you more though. There are a number of added protections available to you that are that are beyond the legally required minimum. You will have a higher premium with these, but they may be worth it. Uninsured motorist coverage will protect you in the event that you are in an accident that involves either a hit-and-run or someone who is not carrying insurance. Property damage liability is important to buy with any auto insurance policy. Damage liability insurance covers any accidental damage that you are liable for. Only three states do not require this. If you are involved in a car accident, then having this will save you a great deal of money. Opt out of unnecessary coverage with your auto insurance. Collision insurance might be an unneeded extra if you drive an older vehicle, for instance. This move may save you a significant amount every month. You may consider dropping comprehensive also, but since liability is on the driver you should not drop that. Even if you are certain you would like to change automobile insurance companies, it is smart to maintain your current policy until you have secured the next one. Theres never a time when you want to have no car insurance, even if its for a very short period of time. By subscribing to a bundle package of the insurances you need, you will save money. This means you should try and purchase all your different types of insurance together. Although two separate insurance policies can be a better choice, you still want to make sure the deal youre getting is good, and has plenty of coverage. There are ways to negotiate a lowered rate even if you have a poor driving record. One way to get a lower rate is to take a defensive driving course immediately after a traffic accident or ticket. Many insurance companies give points for this, effectively lowering your insurance rates. Other companies, like Progressive, now offer customers the option of temporarily installing a chip into their car which monitors their everyday driving habits; if those habits demonstrate consistently responsible driving, then your rate will be lowered. Deciding on auto insurance is not exactly simple. It is important to secure sufficient liability coverage, particularly if you own substantial assets. If you do not have adequate coverage, you could be personally sued for the difference. It pays to be safe by having enough coverage. As you can see, there is a lot more to auto insurance than most people think. Like with many things, you should take the time to learn as much as you can to ensure your car is well-insured and covered under any situation that may arise. If you appreciate and implement what you have learned here, you cant help but find the perfect auto insurance.