Auto Insurance: Shop Smart, Shop Around!

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Auto insurance price has increased in recent years. Cars become more sophisticated, and therefore more expensive to repair. Rising jury award and medical claims also means higher insurance cost for average driver Joe. Crooks figure out more ways to defraud the insurance company, and that cost is passed down to the consumer. In 2001 Houston was hit by the worst tropical storm Allison, and some fraudsters simply drive the cars to the ditch to collect car insurance for total loss.

Firstly you decide what coverage you want. Other than the minimum liability insurance mandated by state laws, everything else is optional. You can have higher deductible and more coverage, and still pay less premium.

Some insurance companies cater to a specific consumer group, and you can get a better rate if you are in that particular group. For example, if you are military personnel, or state employees, you can find a better insurance with certain insurance company. My insurance company gives me discount simply because they have marketing relationship with my bank. And also insurance company reward financially responsible person. That is why they take credit score into account. This practice may not be legal in some states.

If you install anti-theft device in your vehicle, or additional safety features, you can get a discount too. I got a little discount simply because my vehicle has ABS (Anti Lock Brakes) installed.

Some insurance companies reward loyal customers. Because of the cost of acquiring new customers, they would rather give discount to long time customers. It makes perfect business sense. So if it is time to renew you insurance policy, ask.

If you already have insurance for you home, you may consider adding the vehicle to your homeowner insurance policy, and it would be cheaper. And you will only have to deal with one insurance company.

If you are a teenager, you are automatically being placed in higher risk group. Consider taking a defensive driving course, and that can help you get discount from most of the insurance company. Some insurance companies also give discount if you are willing to put a cap on how many miles you drive per year. So if you do not drive a lot, consider this option.

You can get an instant quotes from most of the insurance companies on the internet. Some websites actually search from a pool of insurance companies, and return the best rate to you. After they charge a fee for their service, you still save a lot of money and leg works. Do your research and shop around.

If you are more comfortable to work with insurance agent in your area, and you like your insurance comany to have a local office you can go to, enter your zipcode here,

New Hampshire, South Carolina, Virginia, and Wisconsin do not require driver to have liability insurance. Here is list of state mandated minium coverages (bodily injury liability maximum for one person, maximu for all person, property damage liability maxium): Alabama(AL)(20,40,10), Alaska(AK)(50,100,25), Arizona(AZ)(15,30,10), Arkansas(AR)(25,50,25), California(CA)(15,30,5), Colorado(CO)(25,50,15), Connecticut(CT)(20,40,10), Delaware(DE)(15,30,10), Florida(FL)(10,20,10), Georgia(GA)(25,50,25), Hawaii(HI)(20,40,10), Idaho(ID)(25,50,15), Illinois(IL)(20,40,15), Indiana(IN)(25,50,10), Iowa(IA)(20,40,15), Kansas(KS)(25,50,10), Kentucky(KY)(25,50,10), Louisiana(LA)(10,20,10), Maine(ME)(50,100,25), Maryland(MD)(20,40,15), Massachusetts(MA)(20,40,5), Michigan(MI)(20,40,10), Minnesota(MN)(30,60,10), Mississippi(MS)(10,20,5), Missouri(MO)(25,50,10), Montana(MT)(25,50,10), Nebraska(NE)(25,50,25), Nevada(NV)(15,30,10), New Hampshire(NH)(25,50,25), New Jersey(NJ)(15,30,5), New Mexico(NM)(25,50,10), New York(NY)(25,50,10), North Carolina(NC)(30,60,25), North Dakota(ND)(25,50,25), Ohio(OH)(12.5,25,7.5), Oklahoma(OK)(10,20,10), Oregon(OR)(25,50,10), Pennsylvania(PA)(15,30,5), Rhode Island(RI)(25,50,25), South Carolina(SC)(15,30,10), South Dakota(SD)(25,50,25), Tennessee(TN)(25,50,10), Texas(TX)(20,40,15), Utah(UT)(25,50,15), Vermont(VT)(25,50,10), Virginia(VA)(25,50,20), Washington(WA)(25,50,10), Washington D.C.(25,50,10), West Virginia(WA)(20,40,10), Wisconsin(WI)(25,50,10), Wyoming(WY)(25,50,20).

Most of states give their drivers options of alternative insurance if you decide not to buy insurance from an insurance company. These alternatives can be bond, cash deposit with state authority, or self-insurance. The specifics can be found in the state codes below.

Actual codes, statues and laws on liability insurance for operating motor vehicles in different states: