Having the right auto insurance policy is very important. You want to be sufficiently insured in case you have an accident, but you don't want to be paying more than you have to for your policy. Below are some common tips that will help you select an appropriate car insurance policy.

Get a Copy of Your Credit Report
Many people are unaware that your credit will influence the rate you pay for your auto insurance policy. Therefore you want to make sure that all of the information on your report is accurate and up-to-date.

Determine How Much Coverage You Need
If you are purchasing your new car with an auto loan from Premier Auto Financing, or any other loan provider, you are going to be required to have full coverage insurance. This means that you have all the minimum coverage for your state of residence. You can visit the Department of Motor Vehicles to learn what the full coverage requirements are for your state.

Analyze Your Driving Record and Existing Auto Insurance Policy
Prior to looking for a new auto insurance policy you need to review your current policy and how much you are paying. Knowing this will allow you to accurately compare new plans with your old one.

You also need to familiarize yourself with your driving history. Specifically, do you have a history of tickets? If you do, you need to find out how many points you have and when these points are scheduled to be removed. If the points are listed for elimination soon, you should wait until the points are gone to request quotes for a new insurance plan. A poor driving history will result in higher auto insurance costs.

Get Some Quotes
Online websites like InsWeb.com and InsureOne.com will allow you to input your information to receive quotes from several of the major carriers in your area. Some of these quotes will be instant, some will not. You can expect to be contacted by all companies within a few days from the time you submit your auto insurance quote request.

Compare Policies
Now that you have your quotes, compare the prices and specifics of each policy. You should consider what kind of payment schedule is offered. Meaning, are payments due monthly, quarterly, or annually. You need to find out what will happen if you miss a payment. Also, make sure all of the coverage limits are the same so that you are making an accurate comparison. Obviously, you want to select a few companies that are reasonably priced.

Compare Companies
Now that you have narrowed your potential insurance carriers down to a few, you need to analyze each company. You need to find out which company is going to be the fastest and most reliable when handling your claims. You can visit the Deparment of Insurance for your state and research complaints filed by policy holders for each company. A good idea is to also contact your local auto body shop. They should be able to give you a good idea about which insurance company is the best. You can also visit A.M. Best to view the ratings of any auto insurance provider.

Go Over Your Policy One More Time Before You Sign
Now that you have decided on which auto insurance carrier you are going to use, review your policy again. Make sure that it is 100% the coverage you are looking for.

There are two clauses that you also need to look for before signing. One, make sure that you 'retain the right to sue'. Some insurance companies will not allow you to sue if you are involved in accident. They only allow you to enter into arbitration. If this clause is present, most companies will allow you to eliminate it. If they do not remove this section, use another carrier. The second clause you need to be aware of is the 'aftermarket requirement'. Some carriers require that you use aftermarket parts on your car if you get into an accident. If this is the case, do not use this carrier.

Cancel Your Old Policy
Believe it or not, many people forget to cancel their old coverage when buying a new auto insurance policy. So, remember to cancel your old policy!

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