How do you know which auto insurance coverage you really need? You have to wonder when agents contact you saying you need more if it’s because you do, in fact, need more coverage to protect your assets, or if they’re contacting you because they need to make more commission off of you. Having this thought hanging over your head can make it confusing to really know what you need and what options can be omitted. We’ll go through the popular recommended auto coverage given from every company and explain situations where it would benefit the policyholder.

Property Damage and Bodily Injury Liability
These coverage options aren’t really optional; they’re required by law in most states. Each state requires a minimum amount to be carried in each of these, so be sure to check with your state to know how much you should have. Both of these options are in place to provide a way for you to pay for any physical damage you do to a person or their property. This pays for their medical bills up to the purchased amount for an individual, and then it also pays those bills up to the amount purchased for injuries of the entire accident combined. Another amount that you purchased, for property damage, will pay for the damage that you or any member of your policy causes to anyone’s property. This could be a traffic light, someone’s fence, or their car. It does not cover your own body and property damage. This coverage is ideal for anyone who is in a minor accident and winds up not damaging their own car or causing major damage to the other property.

Comprehensive and Collision
This protection will cover damages done to your insured vehicle, unlike the above mentioned property damage coverage, regardless of who was at fault for causing it. Damages done to your vehicle from a baseball, the wind, or even vandalism will be paid for by the insurer when you have this as part of your policy. Your vehicle will also be replaced if it is stolen or totaled, up to the its cash value amount. As a side note, anyone who is upside down on their auto loan will want to look into GAP insurance as it will cover the difference between the amount owed and the cash value of the vehicle if it needs to be replaced by the insurer.

Comprehensive and collision are not required by any state, but they are required if you have an auto loan or are leasing your vehicle. The loan and lease owners demand that you have these coverage plans on your policy so the vehicle will be taken care of properly. The auto loan will not be approved if you refuse to carry them on your policy.

The time think about not carrying comprehensive and collision is when your vehicle no longer has a worthy cash value. It may end up that you pay more to carry these insurances than what you would get back.

Uninsured/Underinsured Liability
Some states require one of these coverage types, so be sure you know if your state demands it or not. Uninsured/underinsured liability is just as it sounds; it gives you protection from uninsured drivers or drivers who don’t carry enough car insurance. If you happen to be involved in an accident and the other driver, who is found to be at-fault of the accident, does not have adequate or any insurance to pay for the damages they’ve caused, your insurance policy will go into affect and pay for your medical bills and property repair, but only after your deductible has been met.

Personal Injury Protection (PIP)
PIP is required in states that follow a no-fault law (everyone pays for their own accident-related damages, regardless of who was at fault). This coverage is similar to health insurance coverage. It will pay for your medical bills, including the bills of your passengers, up to the amount you have purchased. Drivers hosting a carpool on a regular basis will want to consider purchasing this option as it will help the passengers if involved in an accident and decrease the chances of them suing you for damages. PIP can be used in conjunction with a health insurance plan or on its own at most healthcare facilities. Pip also pays for lost wages while you are recuperating and healing from the accident wounds. Also, it will cover any pedestrians you hit and cover funeral expenses, up to the purchased amount.

Medical Payment
Medical payment is similar to PIP, but only covers the medical bills and not lost wages, pedestrians you hit, or any of the other list we mentioned. It is also similar to a formal health insurance policy and can be used in place of or in addition to one. It can be used to pay co-pays at healthcare facilities as well.

How to Combine Them for the Best Results
The best way to figure out what your needs are would be to imagine yourself or a family/policy member going through the experience of both a minor and major accident. As devastating as this may feel, it’s important to know for sure that you’ve got the best coverage possible. You wouldn’t want to discover some form of coverage is missing right when you needed it, which is too late to purchase it.

Accidents sometimes involve only damaging another person’s property, and sometimes it includes damage done to both parties. They can also inflict minor injuries to both parties, or one driver could walk away from the accident without a scratch while the other driver is taken to the hospital with multiple bumps, bruises, and breaks. Take these scenarios into consideration when deciding whether or not to carry certain coverages. Also, how much money do you have sitting aside for emergencies such as these? If you don’t have a lot, purchasing more insurance may be wise for you to help offset your out-of-pocket expenses.

During this traumatic time, wouldn’t it be helpful to know that your auto insurance company is going to help with the bills? Planning for the unknown by purchasing recommended car insurance coverage will help alleviate worrying in the future.

Who hasn’t looked for the cheapest auto insurance company when searching for a new policy? Americans all over the country hope to stumble across the insurer that is going to provide great insurance at the absolute least inexpensive price possible. So the popular question is what is the cheapest auto insurance company? Unfortunately for all of those drivers who have been dedicated in their search, there is no one auto insurer that has been deemed the cheapest and we’ll explain why. But don’t despair! You can still get a great policy at an inexpensive price. It will just take some know-how and a few minutes.

The first step is to use the tool that we provide. It’s a great tool, and no one should search for a new car insurance policy without using it. “What is it? What does this great tool accomplish?” Glad you asked. Our tool will give you the ability to compare a number of quotes provided by different carriers by filling out one easy survey. The survey really is easy and quick because all of it revolves around you, the driver, and the car you wish to insure.

It starts when you enter in your local zip code in the appropriate box on our page. From there, you will need to provide accurate information as we ask things like age, gender, driving history, home residence, and details about your vehicle such as the year, make, model, and estimated miles driven. All of this information will help determine the rates you will pay and the quotes that will be given to you. The tool we provide is operated by a third party company that has developed a good standing relationship with insurers. They are able to make sure each customer gets the lowest price possible to insure their vehicle.

When you have finished entering in your information on our survey, you will then be provided with a list of at least four quotes from reputable companies. The companies are all local, and if you haven’t heard of them before we suggest doing some research on all of the companies that have provided you with quotes. We have more information within our site on how to research these companies, but we’ll go over it quickly here.

Knowing what you want from your insurer is important. If you don’t know what you want, you could wind up with something you don’t like, even though you’re using the cheapest insurance company. Think about things like customer service and how the company allows their agents to perform. Are they understaffed? Do you wait on the phone forever while trying to get information? Do the representatives have manners and treat you with respect? Also, the ability a company has to pay out claims should be considered. How long will they be around? How many days will it take them to pay for the accident? Are they having financial problems? These are only a few ideas to contemplate when choosing your company.

There are a few third party, non-biased companies who evaluate the performance of car insurance companies. They all have Websites that are easily accessed where consumers can find out more about the company in questions. JP Power reviews the insurer’s policy offerings, pricing, billing and payment, the ease of contacting the insurer, and other consumer’s overall experience in working with the company. Each category can receive up to five marks (five being the best). AM Best is another company that evaluates insurance companies, but they focus more on the financial status of the company. They give out grades — much like schools do — to each company. Any company with a rating of a “B+” or higher is considered “Secure” while anything lower deems it to be “Vulnerable.” This research can help when choosing between two or more companies who are offering the same (or close to) prices for a policy.

You might wonder why insurers charge different rates for the same policy. There are a few explanations that we will share with you. You must understand first that insurers only make a profit when they have more money coming into the company than going out. They pay all of their bills, claims, and their employees and then must have something remaining to be considered profitable. If a company begins to pay out more claims than usual and the amount they are paying has increased, they need to offset this by charging their customers more to increase the money coming in. This helps them continue to make a profit despite the higher number of claims filed and paid. The opposite is true as well; when companies aren’t paying out a high number of claims they can afford to keep their rates low for their customers.

Insurance providers also change the rates of their customers individually depending on their most recent policy period. If the driver has demonstrated a lack in safe driving by receiving tickets, accidents, or points on their record, their insurance premium will increase. Any time a driver files a claim, their insurance will definitely increase because the amount of profit the insurer has made has decreased compared to if the driver had not filed a claim. Remember, the company needs to have more money coming in than going out. A customer’s rates will stay the same or slightly decrease when they have demonstrated safe driving within the previous policy periods by not filing any claims or gaining any points on their record.

Also keep in mind that the price of your policy is determined by how much coverage you purchase. Automobile insurance companies will usually offer a variety of choices, but make sure you are getting the exact coverage you want. Compare the policy you desire among a number of companies to find the cheapest insurance company that will suit you best and don’t rely only on the cheapest policy price you find. You’ll want to make sure that in the time of an accident you have the best coverage possible that you can afford.

Again, we offer our comparison tool to everyone at no charge, and there is no obligation to purchase any of the policies either. However, if you find the policy that’s perfect for you, we do invite you to purchase it instantly online. We make finding cheap auto insurance companies easy so anyone can find them and make the most of their savings.

It can be expensive to insure any driver, but it’s even more costly to insure a 16-year old. This group of young drivers lacks the experience needed to be considered a good driver and receive cheaper insurance. They have spent minimal time on the road and haven’t fully demonstrated they know of the best ways to stay safe. Often, it is young drivers who forget the basic laws and rules of driving resulting in accidents or the receiving of tickets. Car insurance companies plan on this and statistics prove it to be true, which is why they feel the need to charge outrageously high rates to 16-year olds. Unfortunately, there’s not much even the most responsible 16-year old can do to prevent this classification, but only at first.

Car insurance rates for a 16 yr old can gradually decrease as the teenager learns how to show their level of responsibility more effectively. The less risk that driver shows, the lower their rates will be. It’s not an instant process and will probably take a few years to prove, but it’s worth the effort. Over time their safety will show, especially as the years increase without any signs of traffic incidents. By utilizing their “safety skills” they could keep a clean record all the way through college and see a huge decrease in their premium from when they started driving. We have some ideas that can be used by any 16 year old driver to better their situation and work towards lowering their rates.

Determining Their Rates
The rates for a 16 year old are determined in the same manner as anyone else’s rates are figured out. Information about the driver and their vehicle are evaluated with considerations about how often they will make future claims. If the driver is deemed insurable, a representative will extend an invitation by providing the premium price or estimate of how much a policy will cost for a given time period. The policy periods usually run 6 months or 12 months, depending on the company’s terms. Some specific factors are the driver’s name, age, gender, birth date, and address. The vehicle information needed would include the year, make, and model of the car, its annual mileage, and how the car is used (e.g. taken to work, driven to school). Have these things available before you apply for insurance for a faster submission process.

The final factor that will affect the rates is the amount of coverage purchased. Obviously, the rates will be cheapest when minimal coverage is bought, but that may not be the best choice for your teen. While it is mandatory that all drivers carry basic liability, full coverage will help prevent paying even more out of pocket expenses when there’s an accident. There may be a time when Comprehensive and Collision are not needed, for example when the car has little cash value and it would cost more to pay for that added coverage than it would be to replace the vehicle. Not every 16 year old drives a brand new, fancy vehicle so not every option is needed. Medical assistance through Personal Injury Protection or Medical Payment should be considered for the teen, especially if he/she does not have adequate health insurance.

Ways to Keep Insurance Cheap
There are a few things the teen can do to keep their insurance rates down. First, and probably the most important, don’t get involved in accidents and avoid traffic tickets on your record. If the teen knows of the importance of driving safely and keeping their record clean from any tickets and accidents, they will be working towards getting cheaper rates quicker than if they didn’t care and got points on their record.

A second way to keep 16 year old driver insurance cheap is by driving safe. It sounds apparent, but sometimes common sense gets thrown out the window when they’re behind the wheel. Having a driver’s license does have its perks on a high school campus, but it can also lead to not obeying traffic laws to appear “cool” and gain friendships. Speeding through the streets with the radio blaring makes it difficult to see and hear small children when they play on the sidewalks. Talking or texting on a cell phone while maneuvering through traffic directs attention to the conversation instead of the surrounding traffic. Think twice before making a decision that could contribute to a traffic ticket or cause an accident.

Another option that should be discussed between the policyholder and the 16 year old is how the insurance will be paid. It can be split between the two parties or the teen could pay its entirety. There are two advantages to this approach. One, the policyholder saves money. Two, the teen learns about responsibility even more so knowing that this is a privilege they are paying for. This might help them think twice about driving safely since they’ll be the ones to pay for any price hike in rates due to getting a ticket or accident.

One final suggestion would be to limit the usage of their vehicle. Some states require that new drivers only drive on the road when the sun is up. As soon as the sun sets, those drivers are not to be behind any wheel. Pleasure driving might be limited if there’s really no destination involved to avoid unnecessary traffic incidents. Allowing the 16 year old to drive to and from school and/or work could lower those incidents as well.

Finding auto insurance for 16 year old drivers can prove to be a time of mixed emotions. Your child is growing up and gaining more responsibility as an adult. If the teen wants the opportunity to have a license, it should be granted unless they have demonstrated ill behavior. When insurance isn’t affordable, consider looking into discounts offered by your insurer or ask the teen to help with the cost. It is possible for most teenagers to afford driving. Use our resources to help further the process along.

There are some drivers who know the value of car insurance and also that it is required by law, but due to financial hardship they cannot afford to purchase even the minimum coverage. Luckily for Californians who fall into this category, there is a program called the Low Cost Auto Insurance Program, which makes coverage available to safe drivers who meet the standard requirements. These drivers have access to an acceptable insurance policy for a price that can fit their budget. It’s a program that is monitored closely, and there are heavy penalties for trying to commit fraud by providing false information in order to use the program.

Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.

Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.

Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.

The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”

What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.

What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.

Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.

Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.

Low Cost Auto Insurance programs are helpful to all drivers as it keeps the number of uninsured drivers lower than without the program. Find out if you qualify today.

You can’t get much for free anymore, and when something comes across that appears to be free there’s a strong chance it’s not legit or there’s a catch. Luckily for all drivers, we provide our services for 100% free. We not only provide everyone with information about auto insurance, requirements, terms, etc, but we can also give out car insurance quotes for free with no obligation of purchase and no fees. Plus, you can use our services as often as necessary; there are no limitations to the number of times you get quotes.

The main reason to get a list of multiple insurance quotes free is to have a better idea about which companies are offering the best rates. Your premium may have been declining over the years due to your great driving record, but are you sure you’re paying the cheapest possible price for the coverage you’ve purchased? You can’t be sure unless you look around at what the other companies are charging other drivers with your history.

How to Get Your Free Quotes
While other sites charge to permit you to see their quotes, we only ask for some basic information in exchange for the quotes. This information is in the form of a list of questions about the vehicle and person needing coverage. We use this information to determine the estimated cost of the premium. The given information will give a better idea about the level of risk of the driver. A higher level of risk, or the chance that driver will be filing a claim because damage was done to the vehicle, the higher the premiums will be. The answers given will need to be accurate so that when the quote is shown, it too is an accurate estimate. If the provider finds out the answers were false, the quote will no longer be held valid.

Once your answers have been submitted, you will be given a list of quotes. At least four local (which can include nationwide companies too) automobile insurance companies will provide free insurance quotes online or estimate of what it would cost to purchase their insurance based on the information you’ve given and the type of coverage you would want to purchase. To see how you can utilize your quotes, read on.

What to Do With Your Quotes
Now that you have your list of prices offered by other companies, it would probably be wise to look into the companies that are providing these quotes to find out a little more about them. Sure, Company A may be offering you the lowest price, but how is their customer service or their options for coverage? By doing a little research on the companies, you may save yourself a future headache in knowing more.

Once all of your comparison shopping is complete and you’ve chosen the policy that suits you best, you can purchase it instantly online. There are no added fees or hidden charges to do so. If you have any questions prior to purchase, you can contact one of our agents at (800) 527-7225 and they will be happy to provide any assistance possible. You will need your credit card to purchase the policy, as well as your social security number and/or driver’s license number. We don’t require these numbers during the quote process, but you will need to provide them to verify who you are at the time of purchase. For some companies, once purchase is complete, a proof of insurance card may be printed from your home computer and printer for your use. Some drivers may see this as a benefit if they are looking to get proof fast to reinstate a driver’s license or vehicle registration that has been suspended due to previously not carrying coverage.

Ways to Reduce Your Cost of Insurance
If you’re looking to compare quotes to get a better price and are disappointed because there’s only a few dollars difference between your current price and the quoted prices, know that there is more you can do to further reduce your expense. Ask the insurance carrier about discounts they offer that will lead you to lower prices. All discount programs are based around showing an increased level of responsibility on the driver’s part. For instance, one discount is primarily intended for students — both high school and college aged students. When students can maintain a higher grade point average of a “B” or better, their premiums are less than students who cannot maintain that GPA. Most insurers believe that these students with higher GPAs have a better ability to think clearly while in stressful situations, i.e. while taking an exam or while on the road, and they are willing to reward those students.

Another type of discount is offered when drivers take certain driving courses. One driving course, known as a defensive driving course, teaches drivers how to better maneuver their vehicle while on the road in a manner that will help prevent accidents. By taking and passing this class, the discount is effective for up to three years, depending on the terms stated by your insurer and will help keep your price low.

Other discounts are offered by most insurers too. There are discounts that relate to your safe driving record and others pertaining to the type of safety features on your vehicle. If you insure more than one vehicle with the same company you should be given a discount, and Senior Citizens over the age of 65 can qualify for a discount. Don’t be afraid to ask about all of the discounts that are offered by your insurer. You’re bound to qualify for at least one, if not two discounts to save you more money on your premium.

It’s nice to get something for free, but it’s even better when that something can provide a way to save money. Our quotes are not only free for everyone, but they are an opportunity for you to save money on an expensive bill. Use our quote method even if you’re just the slightest bit curious about how your rates compare to what else is available.