by Stephanie Modkins

Created on: August 11, 2008   Last Updated: August 19, 2008

THREE RULES TO FOLLOW WHEN YOU PURCHASE AUTO INSURANCE

If you are looking for affordable auto insurance, you are not alone. Thousands of people seek out this type of coverage each year, but fail. Why? They don't understand the different options under an auto policy. As a result, they over buy. So here's a bit of help. Below are three rules to follow when you purchase auto insurance.

Rule #1 - Only buy the options that you need.

Don't fall prey to an overzealous insurance agent. Buy only the options on an auto policy that you really need. For most people with cars under 7 years of age, this includes Liability, Collision and Comprehensive coverages. Liability pays for the damages or injuries you cause to a person's car or being. Collision pays for damages when you hit another vehicle or object. Comprehensive coverage pays for fire, stolen vehicles and hail damage. The other options such as Medical Payments, Rental and Towing are only necessary if you don't have health insurance or Triple. Also, if your car is over 7 years of age and is a jalopy, only get liability coverage. In the event of a collision, your car will be totaled out 9 times out of 10 and you won't get your money's worth out of the insurance company.

Rule #2 - Take advantage of every possible discount.

Do you have a teen that makes straight A's? Is your car equipped with day running lights? Are you a senior citizen? All of these things will get you a discount on your premium with the majority of auto insurance companies. Also, be sure that the amount of mileage you list per year is exact as well as your general usage (business/pleasure). If you barely drive your car and commute to work on a bus, your vehicle should be listed as such on your auto policy. And guess what? It will bring you great savings in your premium.

Rule #3 - Go for coverage under a large insurance company.

Large insurance companies usually have more options for their customers than smaller ones. These options pan out as lower premiums. Also, these same companies have more staff and longer relationships with local auto body shops and rental car companies. For this reason, the service is often better over all after an auto accident. Unfortunately, smaller companies don't usually have as much to offer, except for higher premiums.

In conclusion, these three rules will help you find affordable auto insurance. So use them to custom fit your auto insurance to suit your needs.

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