If your car is not worth very much, it makes sense to have a higher deductible and a lower annual premium.

Always research the company that you are purchasing auto insurance from before signing a contract. Lower premiums are important, but smart shopping for a car insurance policy involves additional considerations. With insurance, lower price usually means that the company is harder to work with and chances are they do not pay well when you have to file a claim.

It is always possible to purchase additional coverage in excess of what the law requires. While these extra features will cost more, they may be worth it. If you get in a hit-and-run accident or one where the other party has no insurance, you will be out of luck unless you have uninsured motorist coverage.

You may be qualified for a discount if you drive infrequently or have a short commute. Usually you have to keep your mileage under 7,500 for a year in order to qualify for this discount. Consider carpooling or taking the bus a couple times a week to earn a commuter discount.

If you own a valuable car, think about getting 100/200/100 coverage. You must make certain your insurance policy meets all state minimum requirements for liability coverage.

To ensure that you are thoroughly prepared for any possible events, research all of your auto insurance policy’s different coverages. Typical auto insurance policies include coverage for things like bodily harm, property damage and medical expenses. You may have to request optional coverages, such as comprehensive or collision insurance. State minimum coverage won’t cover certain types of incidents, so make sure you have the coverage you need.

Once a driver in your household purchases their own insurance policy, be sure to remove them from your own policy to reduce premium payments. A good example of this is children who have finally become independent. Remove them from a policy after they have their own. Insurance companies take the amount of drivers within each household as a factor when deciding your rates.

Though it might be tempting to cancel your collision insurance to try to save money, you’ll be glad to have the coverage if you cause an accident. Without it, you’ll be responsible for the total cost of fixing your car. You may find it more difficult to pay off repair costs in full, so paying a premium could be easier to manage.

Many people believe that auto insurance rates go down automatically for young drivers once they reach 25. The reality is that rates start going down around age 18 as long as it is a safe driver.

Read your policy closely to ensure you will be provided a rental car when necessary. If your insurance does not have rental coverage you will be required to buy supplemental insurance while your car is being repaired A policy like this can cost an additional $20 every day that your car is in the shop. If your car requires major repairs, you could be paying for quite a while.

If you no longer own a vehicle, remove it immediately from your insurance policy. If you have unnecessary insurance, you are paying out money foolishly.

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