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Auto insurance, the one expense of car ownership you cannot avoid without severe penalties.

If you do not have a car and are in the buying stages, before signing on the dotted line check with various insurance companies to see what the rates and coverage options for that particular car are. SUVs are more expensive to insure than cars, some cars are more expensive to insure over others.

Get an agent to tell you what factors can reduce your insurance bill. Some of these may include a passive alarm system, multiple cars on your policy, more cars than drivers, vehicle theft recovery (LOJACK is one of these), as well as a secondary restraint system (SRS); oh, and a great driving record helps.

If possible, try to get some of these features in a car you are purchasing to help keep insurance costs lower.

If you already have a car, you can still shop around to find the best price bearing in mind that the best price may not always mean the best service, or even good service. In fact the best price does not always mean best value. Research the insurance company to see how they rank in claims settlements, customer service, and rates. Do not purchase the cheapest only based on your premium payments. Many insurance companies may use your credit report results to determine your initial premium regardless of your past insurance claim history.

Once you have a car in mind (or in the driveway) and are making the plunge to call an insurance company, know beforehand how much coverage you want. Some things may dictate this for you. For example, if your car is financed, you will normally be required by the financial institution to maintain full coverage insurance. If the car is paid for and has a clear title (no liens) you may opt for liability only.

What add-ons do you want? How much of a deductible? Each of these can increase or decrease your premium.

Some of the things to know are:

How much coverage is enough?

Every state has minimum coverage you must maintain on your car. These coverage amounts are usually expressed in a group of three numbers. For example, $25,000, $50,000, $25,000 (25/50/25). These usually equate to Bodily injury, Uninsured Motorist, and Property Damage.

The minimum coverage is just that. The minimum, you cannot decrease these coverage levels any lower than what they are. However, you can increase from the state requirements.

Bodily Injury Liability coverage is sold in standard increments, typically it is $25,000/$50,000 or $100,000/$300,000. What these numbers mean here

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