Many people look forward to buying car insurance about as much as having their wisdom teeth pulled by a dentist named Dr. Pain. Today I intend to show you how to take a lot of the sting out of purchasing car insurance by arming yourself with a little knowledge. Many people believe car insurance is a simple as black or white, either you have “liability” or “full coverage”. In fact there many important options in between. In becoming informed you will need to know how to research, and what questions to ask. The three key considerations when purchasing car insurance are price, coverage, and company.The first key consideration when buying car Insurance is price. According to Glenn Hardman at San Diego Insurance, “There is no one company that has great rates for everyone.” He further stated, “ It really pays to shop, shop and when you’ve had enough shop some more. And if it sounds to good to be true it usually is.” Different companies target different age and risk groups, so while one company has a good price for your friend, they make not have a great price for you. Usually 10-15 quotes will probably give you a good range of prices to choose from.GOTO VA1In this graph, I compared rates from the Facilities and Service Corp V9902.4 a software company that produces rates for insurance companies. The example here is a 22 year old single female with two tickets driving a 94 Honda. As you can see her rate varied between companies by well over a $1000 for the same coverage depending on only the company. A good resource I found was the yellow pages, the listings are localized to your specific area and everyone who is anyone is there both big and small.The second key consideration when buying car Insurance is coverage. Coverage varies from company to company but the basic components usually remain constant. The first is liability. Liability pays in the event you hit and injure another person ...
