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Selecting the right auto insurance

In order to select the right coverage, it's important to consider what you are insuring. If you have a new car that's still under a loan to the bank, then you want a higher level of coverage on the car. If your car is paid for, but still has some residual value, you can consider a lower level of coverage. At the bottom, is the car that has no value beyond the ride it provides to you and your family. For this vehicle, you want the lowest possible level of coverage. Taking Massachusetts as an example, the state regulates that insurance is broken into compulsory and voluntary areas. Some of the compulsory insurance required in this state are bodily injury to others, personal injury protection and damage to someone elses property. These areas typically represent a fixed cost with very little room for discount, with the exception of the dollar amount you select for coverage. Optional insurance includes theft, medical payments, collision, and substitute transportation. Each of these features will add to the overall cost of your policy.

The amount of your policy, regardless of the state, will vary based on both the compulsory coverage and the dollar amount selected for coverage. Discount insurers will typically lower the amount of insurance coverage you have to the bare minimum in order to lower your premium. It's important when comparing insurance from different providers that you compare exact coverages. Another area you can typically control cost is in the discounts applied. Discounts typically vary by state, and once again using Massachusetts as our guide, range from credit for Drivers education to anti-theft and airbags. Most states have either an insurance commissioner, or someone in the Secretary of States office who can provide you with a list of approved discounts for that state. There may be additional discounts available from the individual insurance companies as well. These discounts range from AAA to college alumni dicounts and can help you achieve a significant savings.

Don't forget to also check for low mileage discounts, discounts for school age drivers, and multi-car discounts. As you can see, there is a wide variety of ways to discount your insurance coverage. One of the best ways to reduce your overall costs is to be a safe driver. Avoiding the added costs of surcharges from speeding tickets and at fault accidents will have the greatest impact on your insurance spending. Senior citizens can also occassionally benefit from special insuranc discounts, typically because they drive a much lower number of miles than the average driver. So to sum up, you want to compare policies carefully, particularly when shopping online. You should educate yourself on available discounts in your area and from the various companies, and you want to make sure you select the appropriate coverage for the vehicle you drive. Finally, let me add a word of caution for those drivers in states without an insurance requirement, it's better to have some insurance to protect your assets than it is to save that few hundred dollars a year in premiums.