The 5 Most Frequently Asked Questions About Car Insurance

When 95% of people decide to go shopping for car insurance, they are invariably beset with many questions. If you were smart enough to turn to the internet for advice, then you are one step closer to having your answers.

Although there are many specific articles about car insurance issues, what are five of the most commonly asked questions about car insurance? I have written enough of these that I can answer these in my sleep. And no, I am not a car insurance salesman.

What Is the Minimum Amount of Insurance that I Need?

This varies from state to state, so check with the website of the office of the insurance controller where you live. It is usually collision and liability insurance, and from state to state the amount of liability coverage varies per passenger. Your local insurance carrier should know this, too.

How Can I Save Money on Car Insurance?

There are countless ways to save on car insurance, and they vary carrier to carrier. Feel free to ask your insurance carrier if they offer mutli-vehicle discounts, multi-policy discounts (car, life, home insurance together), a safe driver discount or a college graduate discount.

Should I Pick an Auto Insurance Agent Online?

You can do your insurance shopping online, but you should always have a name and have spoken with your car insurance agent. This may not seem important now, but when you get into a real accident you will want someone who calls you back promptly. Emergencies are not the time to learn your car insurance agent is a flake, or worse, just a computerized voice.

Why Is Car Insurance Important?

Once I had a wise friend tell me, "Insurance is for people with a modest income." What does that mean exactly? Well, it means that you buy car insurance because you don't have the deep pockets to pay for a car repair (or car replacement) on your own. Look at it this way -- if you need to finance your next new car, then you need car insurance.

Should I Buy Insurance Based on Cost or Customer Service?

While you can never really help it if you have to cut costs, when researching your next car insurance carrier it is recommended that you go with one that has high customer satisfaction ratings. This should not only mean you will have an easy time finding a real live agent to talk to, but it will also mean that the insurer probably won't make you sit through protracted "price negotiations" with a body shop when repair time comes. Some cheap insurance companies have been known to do that.