What’s First?
If you’ve never shopped for auto insurance, you may think that you’re just going to run down the aisles and pick something that you can afford. If you have shopped for car insurance, you may be dreading the time and energy it’s going to take. Don’t worry! You’ve taken a huge first step already and we’ll help you through the process. Start by considering some specific information about auto insurance so that you’re ready to make a deal.

What Kind?
The first thing you have to decide is what kind of policy you need. Auto insurance is broken down into two major categories - liability and comprehensive, sometimes called collision insurance. As a general rule, liability will pay only for damage you cause to others if an accident is your fault. For example, if you hit a car in a parking lot, liability insurance will pay to repair the damage to that car, but not to your car. Comprehensive policies pay for damage to your car as well. You should note that if you have a lien against your car, the mortgage company will likely require that you carry full coverage to protect them if you are in an major accident.

How Much Will I Spend?
The amount you’re going to pay for auto insurance is called the premium. The amount of that premium depends on the type of policy you choose, the limits for that policy and your deductibles. Deductibles are the amount of out-of-pocket expenses you’ll pay if you’re in an accident. As a general rule, liability insurance is less expensive than comprehensive and the higher the deductible, the lower your premium. Before you grab the least expensive policy you can find, consider the risks. Will you be able to meet that higher deductible? Can you replace your car without the help of insurance?

What Now?
Now it’s time to get down to the serious shopping but there are some basic points you should keep in mind. Ask how often premiums are to be paid. Find out what the deductible amounts are for the policy you’re considering. Finally, keep in mind that laws vary from state to state so you must be certain that you’re meeting minimum requirements.