Vehicle insurances are mandatory therefore it is wise that you choose the right kind of insurance that works best for you and gives you maximum benefit. You have to set aside some time to really compare insurance rates and coverage before you commit to a company. Some things that you need to look for are:

• How much do they charge for the policy and how does it compare with online companies and
land based agencies
• What is the minimum and maximum premium available
• Is there a monthly payment plan that will help smooth out the budget
• How much does the premium go up at each renewal (sometimes it goes down with a safe driving
record)
• How often do they renew the policy (6 months., 12 months)
• What is the deductible on the policy (each state has a legal minimum required)
• What are the premium savings if the deductible is raised above the legal minimum
• What are the premium savings if life, homeowners and auto insurance are purchased from the
same company (sometimes RV and boat can be also added)
• How do they handle claims (phone, in person, get your own repair estimates, etc)
• Do they use independent claims adjusters (usually more objective)
• How long have they been in business
• Are there outstanding complaints against the company (check with BBB)
• What are their guidelines for insuring a vehicle (age, mileage, value)
• Do they insure under age drivers and how much does that raise the premium
• Do they carry insurance for those with a poor driving record (if so, they may charge a
higher premium for it, or for all policies to cover anticipated expenses)

In addition to having answers to the above, it would be wise to have some answers to questions of the legal requirements for insurance in the state of residence. This information is usually available online, or by telephone directly from the state offices. Do not depend on the insurance company to educate, although they may be willing to do so. Compare the information from the state office with the information supplied by the insurance company.

There are several different options available to the vehicle owner when looking for insurance. Compare rates and coverage sold by online companies, independent agencies that represent several companies, single insurance companies such as Auto Owners, insurances sold through organizations such as AARP(American Association of Retired Persons), loan companies such as GMAC(General Motors Acceptance Corp), banks and credit unions. Using the guidelines above the vehicle owner can determine which insurance is the best fit for their current life situation. It seems like a lot of work to go to, but protecting the finances of the household is of primary importance. Taking time up front to learn and compare can pay big dividends later.