Auto Insurance Group - Tips on Choosing the Best Auto Insurance Group For Your Needs - Know What Affects Your Rates, Know What Your Policy Covers

Auto insurance is mandatory in all states. This does not mean that you have to pay outrageous rates to have your car insured. When choosing an auto insurance group, you need to get rates from multiple companies in order to make an informed decision. Taking the proper steps prior to purchasing an insurance policy can ensure you get the coverage you need at the best price available.

Know What Affects Your Rates

There are several factors which determine the premium on your policy. You need to be aware of what insurance companies are looking for when determining your rates. There are things you cannot do anything about, such as age and gender. Women get better rates than men and teens will pay more. Those are the facts. However, there are other factors you can use to your advantage. Insurance companies look closely at your driving record. If there are several speeding tickets or accidents on your record you will have to pay a higher premium. They also take into consideration you credit score. Bad credit scores will adversely affect your auto insurance rates. People with higher credit ratings will get better premiums.

Another factor which you are in control of are the coverage limits of your policy. It is not always in your best interest to get the minimum coverage amounts allowed by the state. If you choose these policies many times you cannot afford the deductible when you are in an accident. Closely study the benefits of medium level policies to get the most value out of your money.

Most insurance companies also offer discounts. Look over the policy to see if you can qualify for discounted rates on your policy. Some companies will give discounts if you install an anti theft device. You can also receive discounts for VIN etching; the auto lot etches your car’s VIN number into the windows on the car. This service usually costs $50-$100 and can reduce the amount you pay for insurance. Make sure you know all discounts available before buying a policy.

Know What Your Policy Covers

When choosing an auto policy, the cheapest is not always the best. You need to know exactly what your policy covers prior to buying it. Before agreeing to a policy, you need to know who is covered to drive your car. Make sure everyone who is driving your vehicle will be covered should there be an accident. You should also find out if you will be covered if you drive another car. This comes into play if you are renting a car. Some companies exclude coverage when you drive a vehicle that is not on the policy. Another factor to consider is if there is a penalty for early withdrawal. Make sure you can cancel your policy at any time. This way if you find better coverage, you can cancel your policy with no penalties.

The best way to ensure you have the best auto insurance rate is to shop around. Get quotes from several agencies for the exact same coverage. You will find the rates for insurance will vary with each auto insurance group. Get all the information so you can make an informed decision on your insurance coverage.