Secret Tips for Buying Auto Insurance

Car insurance is one of those things required when you buy a car. You may not think you need it, but it is required. Here are some tips so that you don't break the bank.

Shop around

The bigger companies may advertise a lot and they may have cute or funny commercials, but don't let that fool you. Sometimes you can find insurance for a much lower price, and you won't be subsidizing a corporation's advertising budget either. So forget the Geckos with British accents and the funny cavemen, and concentrate on finding a reliable insurance company that offers a quality product without the big advertising budget.

Assess Your Situation

Your insurance rates depend greatly on where you live, what type of car you drive, and how old you are. This is called "risk assessment", and it is a gamble on the part of the insurance company that your statistics predict what kind of driver you will be.

Some of the factors that usually mean you will pay more for insurance are:

• Younger drivers generally have to pay more for insurance.
• Drivers with poor driving records also pay more.
• A poor DMV report with a lot of points will mean that you pay more.
• If you live in a larger busier city you will generally pay more.

The bottom line? Safer, slower, and less expensive cars will lower your monthly bill. Obviously driving a Lamborghini will make your premiums soar. That Toyota Tercel doesn't seem like such a bad idea after all, now does it? You should be aware that you can also go to traffic school to remove points from your license.

Choose a payment plan

Car insurance companies are very clever about how they advertise their rates. They may split up the premiums into low monthly payments but require a hefty down payment. If you are able to pay for the entire year in advance, this can save you some finance fees. Be sure to only do this if you can afford it. Otherwise, try to strike a balance between the downpayment and monthly payments to maximize your savings. It is important to find a payment plan that works best with your budget.

These are just some basics when it comes to shopping for car insurance. Above all else, be sure that you are getting the coverage that you need. If you are driving an old relic, chances are that you don't need to be paying for comprehensive insurance, since the car has very little value. Good luck insurance shopping and remember to get a great deal!