Even before you start the process of buying auto insurance there are several things to consider obtaining the best deal. First of all the state you live in will determine what premium you would pay. Here below are listed the ten most expensive and ten least expensive states, in rank order-highest to lowest annual auto insurance premium for year 2006:
Most expensive: NJ, MN, WI, IN, NE, PA, MD, KS, SC, and CA where the premium ranged from $2,736 to $1,841.91.
Least expensive: DE. RI, NC, AR, MI, NY, DC, WY, ME, UT where the premium, ranged from $2,620.99 to $1,797.44.
Then it depends where you live. The farther you live from the congested urban parts of the state, the less premium you would likely pay. The crime rate in your neighborhood and your commute to work will also matter.
Now when you shop for your dream car, the following factors will help to reduce your auto insurance premium: Good credit rating, safety and anti-theft device options in the car, safe and low-profile car, taking a defensive driving course, and membership in clubs like AAA and AARP.
Next, consider the factors that can bring your auto insurance a lot lower, such as: Drive safely; raise your deductible; avoid duplication of medical coverage; look into insuring your vehicle with the same company that insures your home or life; consider eliminating collision coverage if you buy (or have) an older vehicle; don't use your car for business purposes;; keep your car in a garage; inquire about multifamily/multi-policy discounts; get more than one rate quote before you commit; evaluate insurance costs before you buy your vehicle; ask about low-mileage discounts; ask about group insurance discounts; ask about all other discounts; avoid lapses in coverage; and think twice about paying in installments.
Note: Many companies offer a loyalty discount: if you stay with them for a number of
consecutive years your rates will drop.
Visit the following websites to compare the rating of auto insurance companies and the cars:
(All 50) State Insurance Department Websites: www.naic.org
The Insurance Institute for Highway Safety: www.iihs.org
JD Power and Associates: www.JDPower.com
Summaries of State Laws: www.iihs.org
Best Car Insurance Companies: best.lovetoknow.com
For insurance quotes and rates: www.insurance.com www.carinsurancerates.com
To obtain the auto insurance quotes you should visit several websites, including listed above before making your decision. It is also highly recommended that you talk to your current auto and/or home insurance agent or the one you find listed in the Yellow Pages or the website of an insurance company. Never buy the auto insurance from the car dealer.
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