Every year there comes a time when the Auto Insurance comes up for renewal. Or you get a windfall and decide to treat yourself to a new car and need to purchase vehicle insurance. Before you blindly renew your old policy or sign up with the insurance provider the car showroom recommends consider:

1. Doing comparison shopping, visit auto insurance directories like www.1888carinsurance.com and websites of major players in auto insurance policies like Allstate, Progressive, and State Farm. Visit the state insurance department website where insurance rules as well as sample rates are posted. Learn about different policies and options.

2. Finding out how much insurance will be just right. The minimum recommended is normally insufficient to cover any major disasters that may occur. According to insurance advisors the cover should be USD100000 per person, USD 300000 per accident, and USD 50000 for property damage. An absolute essential is uninsured motorist coverage; this will pay bills if there is ever an accident with an uninsured or underinsured driver.

3. Dropping collision and comprehensive coverage as the car ages. Often you will pay as much in premiums as the cost of a new car. Evaluate your car by looking up old car prices at autotrader.com or kbb.com and if you find the car is valued at much less than USD 2000 then cancel the extra coverage you will save at least USD 431 each year.

4. All aspects before signing an agreement or paying premiums. Never choose an insurance provider just based on low costs or the smile the agent or office person has. Many small companies or a newbie in the auto insurance field will take forever to settle claims. Always check carefully the insurer’s record for claims and the company’s financial stability. Surf the internet to check whether there are any complaints or bad reviews about the company and check with the better business bureau whether there are any cases pending against the insurance company you are considering.

5. Taking coverage that is much more than the “minimum auto-insurance liability coverage.” And always ask for a discount. Most car insurance companies give discounts for a variety of reasons: good credit report, clean driving record, having other policies with the same company, being eco-friendly, driving fewer miles; living outside the city; having a membership to the AAA or other bodies.

In auto insurance like other aspects of life you need to be an informed consumer. Always educate yourself on what the policy you are paying for covers. Know your rights and make an effort to read the small print before you take a policy. Make the effort to do a “market survey” ask friends, colleagues, the AAA and consumer organizations about auto insurers and what the essentials of auto insurance are. The World Wide Web is a valuable source of information on car insurance, there are articles and tips written by experts in the field so read and choose a policy and auto insurance company with care.