How to Choose the Right Auto Insurance

When you see advertisements on TV or on the internet about auto insurance providers, they usually have your best interests in mind. Not all companies are created equal with some looking for any reason to drop a customer once they have made a claim.

The importance of doing the appropriate research and comparing different companies cannot be stress enough. You need to take into consideration a variety of factors which include price, coverage, and liability. These and other factors will be covered below:

Insurance Carrier

Your insurance carrier is going to be the one that pays for damages to your car by writing a claim check. There are carriers that just provide auto insurance while other larger companies that insure home and life insurance. Bundling these policies can allow you to save the most money possible. Taking a look at complaints and reviews of a carrier online can provide you with the information you need to make a responsible choice.

Coverage Type

Your coverage type will depend on a few factors like whether you are financing your car and the regulations in your specific state. Below are coverage types to keep in mind:
  • The cheapest type of coverage will cover what you damage with your car but will not insure you or your property. This is considered a liability and with the cheapest option, your medical bills will not even be covered.  
  • Collision will cover repairs to your car regardless of who was at fault in an accident.
  • Comprehensive auto insurance is going to cover everything from your property, medical bills, and even possible lost work due to an injury incurred from the accident.



Most people know about deductibles due to health insurance with some making you pay thousands of dollars until the insurance company starts paying bills for you. Keeping your deductible low could result in far higher monthly payments than if your deductible is a few thousand dollars. Car insurance should be looked at as a risk assessment as for those that barely drive but need a car in case of emergencies, purchasing a policy with a high deductible could be wise in these situations.

Your Premiums

The amount that you have to pay monthly is considered your premium. These can differ immensely and can even be lowered if the policies entire balance is paid off at once. There are other discounts that are available if you enroll in automatic online payments. The premium depends on the type of car you drive, your personal driving records, and even your credit score plays a role in coming up with your monthly payment. Your age is going to play a role as well as teenagers have higher premiums than people with safe driving records that might be in their 30s.

The most important thing that you can do is to list out the different pros and cons of each insurance company. You might find this is much easier to make a decision with all of the facts written out in front of your eyes. Do not overspend for the same coverage by doing thorough research.