Buying auto insurance coverage is a pretty important element of owning a vehicle yet many people still just purchase a policy without doing any research. Ironically they will spend days, weeks or months comparing vehicle warranties, dealerships and types of vehicles but when it comes to car insurance the purchase is often done within 5 minutes of speaking to an agent … an agent who sounded honest (and probably was) but did they really understand all your unique needs?

Why is Auto Insurance so Important?

If you think you already know the answer to this question you probably don’t. Car insurance is not a standard one policy fit all type of purchase. There are different types of coverage, different limits, different deductibles and so much more. While state laws require you to purchase a minimum amount of coverage these minimum car insurance requirements are often much lower than what you actually need. In fact, if you lease a vehicle the leasing company will require you to purchase sometimes up to 10 times the amount required by law. Why? Because their name is on the title and they want reasonable protection in the event of an accident. Ask yourself, who is smarter? You or the bank? Quite likely the bank since they understand the value of litigation, potential cost of damages and view statistics on accident liability more than you play Angry Birds or scroll throw Facebook pictures.

How Much Coverage Do You Need?

This will depend on your unique profile including how much you drive, the type of vehicle insured, number of household drivers and more. While many drivers will have certain common needs each policy will still have different elements that or more or less important to any particular policyholder.

Then you have to consider what you need in an auto insurance company. Some have superior customer service with a wealth of online account management tools, 24 hour customer service and local agents. Others are open 9 to 5 and still haven’t grasped the whole internet thing. To simply buy coverage without comparing providers is like waking into a car dealership and taking the first 4 wheel vehicle on the lot.

Why Compare Providers?

As is every policy different so is the cost of premiums between providers. Some auto insurance companies focus primarily on good drivers, others have lower cost coverage for high risk drivers, some factor in less risk for young drivers and then (within all these groups) there is high competition between providers. Customers can be customers for years, or even decades, and the value of competing for your business creates a vast range of premiums that could vary by up to 30% or more for the exact same policy from providers with a similar reputation. If you think shopping around for car prices was competitive wait until you shop for auto insurance. It may be less sexy but the possibility of saving big is a lot more possible then the pricing of your new car.

Get Started – Read company reviews, compare auto insurance quotes and find a policy which meets your needs and budget today. Don’t compromise your financial health by ignoring the value of good coverage!