Having car insurance creates peace of mind where you can drive around and know that if anything were to happen there is a plan behind you that will take care of any costs connected to it. That's why it's so important to know what kind of policy you are paying for and the kind of coverage you're getting.



Tips

- The first thing you need to do is shop around when you begin your search for car insurance. It can be a hassle; time consuming and having to give out your personal information to so many people can feel uncomfortable. But this is an extremely important step in finding the right insurance company for you.

- Always deal with reputable insurance companies, this way you can ensure that your personal information remains confidential and that the company will pay out in the event that you should need them.

- Maintain an excellent driving record and good credit so that you can get better rates from companies.

- Be aware of the book value of your car. You may consider your old 1990 Chevy Camaro your prized possession but if the book value states the car is only worth a small amount, the insurance company will only pay out up to what the book value is to fix it. There would be no point in carrying full coverage at the higher rate on an older car. Having liability only insurance would be sufficient.

- Pay out of pocket for small damages. Many people feel that since they have to pay for insurance that the company owes them to fix any small damage they may have on their vehicle. In fact, this can cause your premiums to go up and will affect your rates if you were to shop around for a different company.

- If you find yourself in the unfortunate situation of having to file a claim then make it easier for yourself by being prepared. Have your claim number available and be reasonable and honest when giving the adjuster your information.

Do not try and claim an inflated amount of your car's worth without the ability to provide reasonable documentation. Insurance companies hear people making outrageous claims and threats every day. It will only make them suspicious and hard to work with.

- Most of all use common sense when driving. Do not mix alcohol with driving; it impairs your reaction time and judgment. Drive defensively, pay attention to the road and other drivers around you. You may be doing everything correctly but that doesn't mean everyone else is.

Anticipate what mistakes another driver may make and prepare ahead of time what you would do if that were to happen. Doing this simply means be aware of the road conditions and where all the cars are so that if someone cut into your lane you could safely swerve out of the way safely.

Buying car insurance is one of the most important things you can do, make sure you know everything there is about the company you're going with and the policy you're buying.