How to Buy Car Insurance

      23 Comments on How to Buy Car Insurance

Watch more How to Buy a Car videos:

Follow these helpful hints before you sign on the dotted line.

Step 1: Check your credit
Check your credit report for errors. Insurance companies use your credit rating to help determine your rate.

Request a copy of your credit report by logging onto or by calling 1-877-322-8228. You are entitled to one free copy per year.

Step 2: Obey the law
Find out the minimum car insurance required by law on your state’s Department of Insurance web site.

Only New Hampshire and Wisconsin don’t require car insurance. But since they do require people to pay for accidents they cause, many people carry it anyway.

Step 3: Consider more liability coverage
Consider buying more liability insurance than your state requires. Consumer groups recommend a minimum of $100,000 for injuries per person, $300,000 per accident, and $100,000 in property-damage liability.

Most American car insurance does not cover you if you’re driving outside the United States. Some policies are valid in Canada and Mexico, but check if your coverage meets those countries’ requirements.

Step 4: Crunch some numbers
Collision coverage pays for the repair or replacement of your vehicle. If your car is more than five years old or worth less than $4,000, it may not be worth it.

Step 5: Consider comprehensive coverage
Comprehensive coverage covers you if someone steals your vehicle or if it’s damaged by a windstorm, fire, hail, or vandalism. But if your car is more than 12 years old, unless it’s a valuable vintage set of wheels, the cost may outweigh the potential benefit.

Step 6: Weigh the advantage of add-ons
Weigh the advantage of other add-ons, such as extra medical coverage, emergency roadside assistance, and glass breakage.

Consider buying uninsured or underinsured motorist protection, even if your state doesn’t require it. This provision protects you if someone with no insurance causes a collision with you.

Step 7: Shop around
Shop around. Get a general quote from an insurance company’s web site by plugging in basic information like your zip code and car model. Some web sites offer quotes from several companies so you can compare rates. Just be aware that these quotes reflect a bare-bones policy with no add-ons.

Step 8: Ask about discounts
Once you choose a company, ask if you’re eligible for discounts. Having air bags, antilock brakes, or an antitheft device can reduce your rates. So can a clean driving record, carpooling, a car with low mileage, and good grades if you’re a student. Drivers between 50 and 65 also may qualify for discounts.

Step 9: Choose a deductible
Choose the highest deductible you can afford in order to pay the lowest premium possible.

Step 10: Pay up-front
Once you decide on a policy, pay the entire premium up-front to save the monthly service fee.

Did You Know?
An estimated 14 percent of drivers in the U.S. are uninsured.

23 thoughts on “How to Buy Car Insurance

  1. carnalucious

    Hmmm. I never said that the internet or the english "languege" (yet another typo that I don't believe is LEET) is the property of America. When you put someone/something down, you look like even more of a jackass when you can't use spell check. And I believe you did type your reply in english, no?

  2. ranksubmit

    get auto insurance online,insurance quote,automobile insurance,car insurance,
    insurance quotes,insurance companies,insurance policy,compare insurance,liability insurance


  3. Christopher Mercer

    Insurance must be Government.

    Nevada Insurance: 10 Million people x $50month

    New York Insurance: 25 Million x $50 month

    California Insurance: 30 Million x $50 month

    Texas Insurance: 20 Million x $50 month

    Kansas Insurance: 15 Million x $50month

    Colorado Insurance: 20 Million x $50 month

    South Carolina Insurance: 15 Milion x $50

    Et Cetera

  4. quez76

    never pay a past due amount on your car insurance, especially if you didnt get into a car accident, its not like you can go back in time and risk an accident…

  5. Stephen Githinji

    Your policy is actually a package of seven primary auto insurance coverages. Each coverages has its own separate premium amount. Your payment is the total of these separate amounts added together for each car listed on your policy.

    Here's a list of the primary coverages
    Bodily injury liability,Medical payments, no-fault coverage,Comprehensive physical damage coverage,AND OTHERS


  6. mike riddle

    I saved over 60% on my car insurance by comparing discounted rates using a site my friend told me about, i thought i might share it to help somebody out, here it is: ( discount-auto-insurance-rates . info )

  7. Bob Wiley

    This video is pretty good. It's just easy to put off getting car insurance once you start looking into your credit report. There's really nothing you can do about it other than do a better job moving forward. Good video though.

  8. kpcofvs911

    All these comments are great! One option I urge you to check out is MCA! Never heard of it? lol Well pm for details on another option that certainly can compete with AAA but have great benefits with lower cost! :)

  9. James Shaffer

    *pro-tip for getting cheap insurance* Use an independent insurance agent (not associated with GEICO, Progressive, Allstate, or any of the big guys).  You will get the cheapest rates from them because they don't have to pay a percentage of their earnings for the corporate affiliation.  My favorite place to use to compare quotes for the cheapest rates is "4AutoInsuranceQuote" (Google them), but really any quote comparison site will do.


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