If you own and drive a car, you need car insurance. But how do you know what policy to buy?

First of all, make sure you understand what the policy does and does not cover. If the policy doesn?t provide the coverage you need, then ask your insurance provider to come up with a new policy quote. While you are required to have car insurance, you also need to make sure the insurance coverage will take care of you in case of an accident or vehicle breakdown. Get all insurance quotes in writing. Having a written record of the quote prevents the car insurance provider from trying to raise the price on the premium if you decide to purchase the insurance.

If you own a home or have life insurance, bundle your policies. That means you purchase all your insurance policies from the same provider. This can provide significant savings on all your insurance policies, and it simplifies your life because you are dealing with one insurance provider for all your needs instead of several insurance providers.

A major factor in how much you pay for car insurance is where you live. Generally speaking, you will pay more if you live in a city and less if you live in the country. Also, the more expensive your car, the more you will pay to insure it. The safer your auto is rated in test crashes, on the other hand, the less you will pay to insure it. Any kind of “flash” or any custom feature will increase your insurance costs.

Ask your agent what kinds of discounts may be available to you. There may be breaks for members of the military, women, seniors, households with multiple drivers, and holders of bundled policies. You may get a reduction on your premium if you belong to certain clubs and organizations, like the AARP. If you have a teen driver who is a good student, ask about good student discounts. Insurers view good students as lower-risk, and charge lower premiums. Your teenager may also get you a substantial reduction in premium costs if he or she takes defensive driving or a basic driver ed course.

Finally, always shop around. Get several quotes on your car insurance. It’s always possible that another provider could offer you better coverage at a lower premium. Insurance companies make comparison shopping easier than it used to be, especially over the Internet. You can do your research and find out the discount programs you may qualify for, the safety information on your vehicle, and the risk assessment of your neighborhood. Going to your agent armed with knowledge makes it much more likely you will get the best possible rate.

No matter how large or how small your insurance needs, always deal with professional, authorized insurance agents. They will help you determine exactly the coverage you need and answer all your questions.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.

categories: Car Insurance,Vehicle Insurance,Auto Insurance,Insurance Cars,Vehicles,Automotive,Personal Finance