Shopping For Auto Insurance
Most vehicle owners transfer their existing insurance policies over to their new car.  If you've been with the same company for a long time, however, it doesn't hurt to see how they measure up to other carriers. The difference between insurance companies can be staggering!

Don't sign anything until you find out what your insurance costs will be.  Before you buy a new or used vehicle, get a quote on the car you want from an experienced online insurance broker. Internet Resources links you to more insurance info.

How Are Insurance Rates Determined? - In setting premiums, insurance companies rely on some factors not directly related to the vehicle itself.  Rates are affected by your zip code, age, gender, marital status, driving record (tickets & accidents, both yours and your family's), and finally the make, year, model, and type of vehicle you're insuring. 

Required By DMV - To get new tags for your purchase, in addition to your driver's license you must present proof of insurance to your state's Department of Motor Vehicles (DMV).  Your insurance agent will give you a new insurance identification card, listing your carrier, policy number, VIN# (vehicle identification number), and your name and address.  Make sure the VIN# is correct and that the address on the card matches your driver's license exactly. 

Pitfalls To Avoid - If you're in the majority of drivers whose driving record isn't perfect, don't lie about it when you're getting online quotes.  Insurance companies will check your driving record.  They will even find out about your out-of-state tickets and accidents.  You can be charged with fraud!

If your driving record is questionable, get a copy of your driving record before shopping for insurance.  "Questionable" means accidents you were involved in and traffic tickets you may have received, any time in the past 5 years.  Even if you were found not at fault or not guilty, or you paid off your tickets like a good citizen, check your record to make sure your compliance has been noted.  

Either go through reputable insurance broker or buy direct from well known national companies like State Farm, Travelers, Fireman's Fund, Aetna, Allstate, AIG, AARP, Progressive, Nationwide, CNA, and Liberty Mutual.  Avoid brokers who guarantee coverage for all while advertising their low down payments; they sell policies from under-funded high-risk insurance carriers.  The best way to evaluate an insurance company is to research its A.M.Best rating, which tells you its ability to pay off.  Try to buy insurance only from companies with "A" ratings.  Go no lower than "B." 

Types Of Insurance Coverage are covered on the next page>

Before you buy, don't forget a FREE VIN# Check from Carfax
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