BEauty ART

Insurance rates are on the rise for 2011, so it makes sense to do a little auto insurance comparison to lock in the best possible rate for your budget. But when you compare car insurance rates, what should you be looking for? After all, buying the best car insurance means more than just finding the lowest car insurance rates. There are actually four factors you should consider when looking for the cheapest car insurance for your dollar
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A direct insurance company is one that only sells vehicle policies, and you deal directly with the insurance company, not through an agent. Insurance agencies handle several different types of insurance (home, auto, and life, for example) and you deal with an agent who acts on your behalf. Direct auto insurance may be cheaper, but for some policyholders, dealing with an agent is more pleasant than dealing with a customer service representative at a direct company. In addition, agencies may be able to extend discounts if you have all of your insurance policies with them.

How much coverage do you really need? If you still owe a great deal of money on your car loan, you should carry full coverage insurance. But if you owe nothing on your car and its value is less than $1,000, a liability only policy may be all you need. Carefully assess how much you can financially cover out of pocket in the event of a motor vehicle collision. How much you are willing to pay will directly affect how big of an insurance policy you need.

You should also consider the customer service you might receive at the company of your choice. What is the company’s rating, and what is its reputation among consumers? The cheapest car insurance may not be such a bargain if you cannot get help when you need it most. A little judicious Googling or a call to your local Better Business Bureau can help you determine if a company has a good reputation or not. If it doesn’t, it may be time to move on until you find a better agency.

Does the agency offer any kind of good driver discounts? Some companies will happily lower your premiums after you complete a defensive driving course. Others will reward you if you maintain a good credit score. Check and see how the company rewards the customers who work hard to maintain both fiscal responsibility and a good driving record. A discount or two can save you quite a bit on your monthly bills