How to find cheap car insurance

Car insurance is a necessary part of driving a vehicle. Driving without insurance could cause a number of problems. If you get in an accident as an uninsured motorist, you are not only responsible for your own medical bills and repairs, but those of the person you hit (if you are at fault.) In addition, because car insurance is required in all states, if you are pulled over driving without insurance, you could face legal problems and the possible suspension of your license as well.

However, depending on the type of coverage you get, how much you get, and your driving record, auto insurance can also be very expensive. The good news is, the more you shop around and the more you know before you purchase auto insurance, there is always money to be saved.

How much money you can save when looking for auto insurance can be anywhere from $20 a month to hundreds or even thousands per year.

The following are some tips that will help you to find cheap car insurance.

Know your state's requirements

Every state differs when it comes to insurance requirements, how much coverage you get, and what type of coverage you get. If you don't know how much you want or need, you could be paying much more than you need to on insurance. The following are some of the basic types:

• Liability. This type of insurance is required in every state but Wisconsin, South Carolina, Virginia, and New Hampshire. Liability protects the driver against damages caused when he or she is at fault.
  
• Collision. Collision insurance will cover the damages against your vehicle whether it comes from another car, or you run into something, like a tree or pole.
  
• Comprehensive. This type of insurance covers damages that are not the result of a collision; for example, if there is an earthquake and your car is damaged or if you are the victim of vandalism.
  
• Bodily injury. If you are at fault in an accident and the other person sustains injuries that need to be treated, this type of insurance will cover that.
  
• Property damage. This covers damage to property that occurs in an accident that was your fault; for example, repairs to a mailbox or building.
  

• Uninsured/underinsured. This is required in many states, and for good reason-with over 15% of all drivers on the road without insurance, this type of insurance will cover you if you are hit by someone without insurance.
  
• Personal injury protection. Typically used for motorists in no-fault states, this insurance will cover necessary expenses, such as medical expenses and loss of income. However, this type of coverage is only available in some states.
  
• Optional insurance. You also have the option of purchasing insurance coverage that will cover things like windshield replacement, car rental reimbursement, and roadside assistance.

Shop around
Once you know the basics of what to expect and what you need in terms of insurance, you can then go about finding an insurance company.

Because quotes will vary widely (sometimes a difference of over a thousand dollars), one of the most important things you can do to find cheap auto insurance is to shop around and get quotes from a number of different companies.

While the internet has made it easy to find quotes quickly, when looking for different quotes, it's best to talk to a customer service representative from the company who can help you determine what you do and don't need, unless you are absolutely sure how much coverage you want on things like bodily injury and so forth. Many times, the representatives are familiar with state requirements and can let you know minimums and other necessary information. In addition, they can answer any questions you may have about the process.

Ask for recommendations
You should ask friends, family, and coworkers for recommendations on auto insurance providers. At the same time, ask them if they have had any negative experiences with insurance providers.

Don't throw away ads
No one wants junk mail, and more than likely, you toss it in the trash before even looking at it. Oftentimes, however, insurance companies will send out mailers or flyers offering their services. Many people just write it off as junk mail without looking at it. However, these mailers are worth looking at; sometimes they provide incentives, coupons, or discounts for new customers.

Be careful with "optional insurances."
Your agent might try and sell you optional insurances such as windshield repair, car rental reimbursement, and so forth. If you are trying to save money on car insurance, you will probably want to skip these little luxuries that you most likely will never end up using. Make sure you consider whether or not you really need these things before you sign up for them. For example, if you have a second vehicle or a coworker you can carpool with until your car is fixed, you don't really need rental reimbursement.

Ask about discounts
You can find cheap car insurance by taking advantage of the various discounts that may be available to you. For example, some companies offer incentives for students with good grades. Members of the Armed Forces, those who are retired and are members of the AARP, and other organizations are usually eligible for a variety of insurance discounts.

In addition, many companies will offer you with a reduced rate if you can supply certain documentation, like proof of prior insurance. With some companies, this can save you around $20 a month on your payments.

There is also the possibility of discounts for more than one vehicle or multiple policy discounts, so make sure you look in to all that you may be eligible for.

Monitor your driving record
One of the biggest indicators of how much you will pay on car insurance is your driving record. So if you have accidents and speeding tickets on your record, you can expect to pay more money on can insurance than if you had a clear record.

Speeding tickets, depending on your state, will stay on your record for around three years. If you are not sure how many tickets are on your record, call your local DMV. They will be able to tell you how many tickets you have and the date in which they were received. Once you find out how long they will be on, or have been on, make sure you update your insurance once a ticket goes off your record. This can have a big influence on how much you pay each month.

In addition, take advantage of any programs your city may offer with regards to tickets. Some states will keep a ticket off of your record if you attend a city-sponsored driving class. While you will have to pay for this, in the long run it will save you money.

Take advantage of renewal time
Your insurance company may offer you better rates when it comes time to renew your policy in order to keep you on as a customer. You usually have some leverage here, so take advantage of it.

In addition, if your company tries to raise your rates after a ticket or an accident in which you were not at fault, you may want to consider shopping around for another policy. There is no law that states you need to stick with your insurance company, and you can cancel at any time. Just make sure you have coverage before you cancel your policy.

Choosing the insurance company
If you have several companies that are offering you good rates, be sure you research the company to make sure you are dealing with someone reputable and who will work for you. Things to consider include how long they take to settle claims, whether or not your insurance will go up in the event of an accident, and whether they seem knowledgeable when it comes to answering your questions.

You'll also want to check out customer reviews and comments about the insurance company you are going with. If most of the comments mention saving money on their auto insurance, chances are the company will be able to get you cheap car insurance. In addition, you will also want to check the company's ratings on such sites as AM Best and Standard and Poor's. These will give you ratings and information about the various companies.

If you want to drive, you will have to have car insurance. Car insurance acts as protection for anyone on the road by covering you financially in the event of an accident, whether you are at fault or not. Finding cheap car insurance is not difficult if you know what you need, ask questions, and shop around for affordable rates.