If you research insurance company policies and shop around, you can get a good deal on auto insurance. A number of factors determine the particular drivers that insurance companies give the best premium rates to.

Make sure you understand the different types of automobile insurance coverage before you purchase it. If you are just getting insurance on one car, there are still many things to consider. One kind of coverage that is almost universally required is bodily injury liability. This coverage pays for legal fees, injuries, or deaths resulting from accidents that you cause.

Liability coverage of certain minimum levels are required by most states. Knowing what type of coverage is required by law in your state is the responsibility of you as a citizen. Being involved in an accident is bad enough, but if your insurance doesn't meet state requirements, you have extra legal trouble on top of any damage you have to deal with.

Coverage beyond the legally required minimum is always an option. Though your premium rates may rise, you may find that these options are worth it. There are many uninsured motorists on the road, and uninsured motorist protection will protect you if you get into in an accident with one who is found to be at fault.

When selecting your insurance policy, be sure to get quotes from several different agencies. Rates vary wildly from one company to the next. You should get yearly quotes to ascertain that you maintain the best coverage and rates. The key is to ensure that you are receiving price quotations that include a similar amount of coverage as you had before.

Most auto insurance policies are actually issued on the particular driver who buys the insurance, not the car itself. Many times people will let a friend borrow their car, and if they get in an accident, the insurance refuses to pay. You can get a policy that allows other people to take the wheel of your car, but it costs more for that coverage.

Property damage liability is an important thing to have on your auto insurance policy. This liability will cover damages your car causes during an auto accident. Most states require this liability. It can be a real financial lifesaver if you get into a serious accident with lots of damage.

The best thing you can do to to keep your car insurance payments low is to maintain a spotless driving record. Nothing will increase your rates, as quickly as a car accident. Know your driving limits, and avoid risks that could cause accidents. For example, if you don't see well in the dark, then don't drive at night.

Look into the coverage you have on your automobile insurance policy, and see if there is anything you can remove. The comprehensive and collision coverages are worth reconsidering for an older car. You may benefit from adjusting these downward, or even drop them entirely. Remove this coverage from your insurance and you could save a large amount every month. You can also consider dropping comprehensive and liability coverage.

Buying insurance as a bundle leads to paying lower rates. You can insure your house and all vehicles with one insurer and save a good deal of money. Be certain you receive solid coverage at a fair price, even if it means purchasing multiple different policies.

If you have a teenager in your family, do not buy them a car. Instead, have your teen share a car with other family members. The cost of adding a new driver to your current insurance plan is cheaper than having to secure a new policy. Many insurers provide discounts for being honor roll students or earning good grades, so encourage your teen to do well in school.

Rates vary for all insurance companies. If you see a better rate at a different company but really don't want to switch, speak with your agent to see what can be done to lower your current premium. Sometimes, your current agent can match any lower offers that you find. They would rather lower their rates than lose you as a customer.

Many find the process of determining their necessary level of insurance coverage to be difficult. You need to make sure that your liability insurance covers all of your assets. If you did not have enough liability coverage to cover an accident with someone else, but you have personal assets to cover it, then that person could sue you in court for the difference. It's important to stay on the safe side when choosing your level of coverage.

A great tip for auto insurance is to get 100/200/100 level coverage for liability if you have a good car with a few assets to protect. State law often requires a certain amount of liability coverage, so it is important to be sure that your own policy meets those minimum thresholds.

For cheaper insurance rates, try increasing your FICO score. Many people do not realize that auto insurance providers perform credit checks. Studies have shown that a low credit score usually goes together with a higher risk to get into accidents. With a healthy credit score, you will get cheaper insurance.

Installing security systems in your car, such as alarms and trackers could help you lower your insurance premiums. The risk of your car being stolen is a sizable factor in computing the total cost of your policy. Your insurance will be lower if you have a safer vehicle.

If you don't drive much, then you are likely eligible for a discounted premium. To be eligible for this discount, you typically have to drive less than 7,500 miles per year. If you choose to take the subway to work rather than drive, this could also mean a discount. Ask your agent about it.

One way to reduce the cost of insurance is by moving to another city or state. Different states and cities have different requirements and different premiums. You could save tons of money on insurance if you decide to move somewhere else.

As you have read, affordable auto insurance is not as rare as you may have thought. With the proper information in hand, it is possible to lower your insurance premiums.