Looking to purchase the minimum auto insurance coverage for your car? Want to know where to get the cheapest rate? Read on ...

What's the minimum auto insurance coverage I need to drive?

It varies from state to state. In most states you need to have liability insurance to legally drive your car. A few states also require you to have personal injury protection and uninsured motorist coverage.

Here's what those coverages mean:

Liability coverage pays claims made against you, your family, or someone driving with your permission, for property damage, physical injury, and death.

Liability coverage is expressed by three numbers. The first two numbers refer to bodily injury coverage while the third number refers to property damage coverage. So 15/30/10 means $15,000 coverage for one person injured in an accident, $30,000 coverage for all persons injured, and $10,000 coverage for property damage.

Personal injury protection coverage pays your medical expenses and your passenger's medical expenses when you have an accident. It also pays you and your family's medical expenses if you're involved in an accident in someone else's car.

Uninsured motorist coverage pays for injuries or property damage to you, or your family and passengers, caused by an uninsured driver, an underinsured driver, or a hit-and-run driver.

You can visit the Insurance Information Institute’s web site - III.org - to find the minimum auto insurance coverage required by your state.

Where can I get the cheapest rate?

The quickest and easiest way to get minimum auto insurance coverage at the cheapest rate is to go to an auto insurance comparison website. In just a couple of minutes you can get the cheapest quotes from top-rated companies. It's fast, it's easy, and it's free.

Statistics show that teenage drivers are far more likely to be involved in vehicle crashes, and these statistics tend to raise car insurance rates for teenage drivers. Parents that have teenagers that are learning to drive can expect to pay rates that are a bit higher for their teen. However, there are a variety of ways that you can work together with your teenager to get lower rates on your car insurance.

Tip#1 - Teach Your Teen the Laws
One of the best ways that your teen can get low rate car insurance is by keeping their driving record totally clean. In order for teens to keep a clean driving record, they need to know and understand the traffic laws. As a parent, you need to make sure that your teen studies the laws and understands what they mean and how they apply to driving. Remember that some states have laws that only pertain to new drivers, so be sure that your teen is aware of those laws as well. Not only should you have them read and learn the laws for driving, but you also need to help teach the laws by your example. Follow the traffic laws yourself when you are driving and communicate to your teen how important the laws are for everyone's safety.

Tip#2 - Add Your Teenager to Your Policy
While some parents tend to set up separate insurance policies for their teenager, you can save a great deal of money if you add them to your current policy. It's possible that the discounts you're already getting on your policy could carry over to them as well and if you buy them a separate vehicle to drive, you can get an even better discount for adding another car to your policy.

Tip#3 - Encourage Good Grades
Most car insurance companies will offer discounts for teenagers that have better than a "B" average in school. You can save up to 10% if your student keeps up the good grades, so encourage your teen by offering incentives to keep their grades up. Offering an incentive for good grades can also help to keep them working hard and applying themselves at school. You may even want to figure out how much money you're saving on insurance when they get good grades and then pay them the amount that you save. This is an excellent motivation for teens to keep their grades up and to teach them how they can save on their car insurance.

Tip#4 - Driver Education
Having your teenager take a driver education class can be a great way to help teach them important laws and lessons about driving. If they take a certified course, you may also be eligible for discounts on your car insurance rates as well. If you are not sure which classes will qualify for a discount from your insurance company, then give them a call and find out before you pay for your teen to take the class.

Following these tips can help you get your teenager through those first years of being a driver without having to pay extreme amounts on car insurance. Remember, while car insurance rates for your teen driver will probably be a bit higher, you can help them achieve lower insurance rates with a little work.

With so many choices currently available in the auto insurance market, it can be quite difficult to know which products to choose. Understanding some basic facts about the insurance market can help you to make informed decisions. Following are five facts that you need to know about the auto insurance market.

1) Premium Plan - Is it worthwhile? Many auto insurance companies now advertise deluxe packages that include such add-ons as “accident forgiveness” and “new car replacement.” These plans do indeed offer top notch services above and beyond standard insurance policies, but at a much higher price. Make sure you understand exactly what you are paying for and whether the benefit is worth the cost in your unique situation.

2) Shared Market versus Nonstandard Market - If your driving record is below average you will have to search for alternatives to standard auto insurance. Every jurisdiction offers what is known as a shared market, in which poor drivers are able to get car insurance from regular insurance companies. Naturally prices are much higher in this market than in the standard auto insurance market, as there is much more risk to the insurance companies. However, there is now a third option. The nonstandard market consists of a number of specialty companies whose only business is insuring nonstandard drivers. Look for a nonstandard as opposed to a shared or assigned risk company and you may save hundreds of dollars.

3) Most and Least Expensive Cities in America for Auto Insurance in 2006 - The most expensive city was Detroit, with an average annual premium of over $5,800. The least expensive was Roanoke, VA. There annual premiums averaged only $912. You may not be able to plan a move based solely around insurance rates but if you are trying to decide between two cities, auto insurance rates along with other cost of living concerns may help you choose.

4) Downtown is the most expensive - Many Americans are well aware that car insurance rates rise dramatically in large cities as compared to suburbs and small towns. It is not as well known, however, that even within the city limits zip code makes a great difference. Deciding to live in a more residential part of the city rather than downtown could net a significant savings on auto insurance rates.

5) Purchasing auto insurance is a numbers game - It is impossible to predict everything that could possibly happen to your vehicle. It is possible that you may pay for insurance for many years and never use your policy. It is equally possible that you will need to make a claim almost as soon as you drive off the lot. Therefore, it is crucial that you weigh the costs versus benefits of varying levels of coverage and deductibles. Consider what will happen if you have an accident and how much money you can afford to pay out of pocket. Also consider how much money you have available each month to pay your premium. Shop around in order to get the best possible insurance for the money you can afford to pay and be sure to consider various deductible amounts as well.

With so many options on the auto insurance market today, it would be difficult if not impossible to find the “perfect” insurance. Taking the time to learn the basics of the insurance market and the factors that affect your rate will assist you in making a good choice. Consider all of your options and you will find auto insurance that works for you.

The answer to this question might seem obvious and well..it is! YES you absolutely need auto insurance and here are all the reasons why you do.

1. You need it for legal reasons

Almost every state does requires you to have insurance.
In some states, you will be asked to have proof of insurance when you register or if you have an accident. And you might even have to carry it at all times in your car.

Again, depending on your state, the consequences of not having your car insured can be very large. Those include among other things:

-A fine as high as $1000
-Licence and registration suspension
-Up to 1 year in jail

2. Even basic coverage makes a very big difference

Depending on the company you choose to insure your car, the basic coverage plan might vary. It will however in most cases include these:

* Bodily Injury Liability
This is crucial. This covers injuries that you may cause to someone else in an accident. This involves very large amounts of money (medical bills), especially if the accident is followed by legal actions against you.(lawsuits)

* Property Damage Liability
This is the same, only applied to material damage, be it someone else's car or public property. This can get quite costly too

What usually isn't included in your basic, required by state, coverage is any coverage of your own vehicle's damage that might be caused by an accident.

The advantages to this type of coverage are obvious though; not everyone can afford to just replace a car after a serious accident.

So if you don’t have insurance, or dropped your insurance after getting the proof of insurance you needed, you should really really reconsider this. An accident can happen a lot faster than you think and you’ll be left in a difficult situation.

My dad used to say: “Car insurance is such a racket!”

He was talking about how good drivers pay into it for years and never get anything out of it except for this supposed peace of mind in knowing that its there for us just in case...

So when the opportunity comes up to save money on my auto insurance…without compromising my coverage...then I'm all over it!

Here are a few ways to slash your car insurance bill today…

* Teenagers that live at home: restrict their usage of your car so they are considered to be an "occasional driver" by your car insurance company.

* Raise your deductible: Raising your deductible from $100.00 to $500.00 could save you hundreds of dollars per year.

* If you have a business and a teenage driver: Have your teenager drive the company car because many car insurance companies don't charge extra for teenage drivers.

* Dump your collision coverage: If your car is worth $3000 or less, some auto insurance companies will still cover it for its full amount if totaled, which means you have no reason to pay extra for collision coverage.

* If you're under 25: Unless you are a maniac behind the wheel, get your parents to put you on their auto insurance policy.

* If you rent a car: Check to see if you are already covered by your auto insurance company before you waste $20.00 to $30.00 per day for the extra car insurance provided by the rental company.

* Get multiple auto insurance quotes: Like any business, car insurance compete against each other and rates can vary greatly from one company to the next. You don’t need to wait until renewal time to change over because they will prorate and refund what is left over on your existing car insurance policy too.

Auto insurance or car insurance protects you and your vehicle from any damage occurred due to an accident and acts as safety device from sustaining any loss. Not only accidents, your vehicle can also be covered from damages due to vandalism, adverse weather, theft, fire and other scenarios.

Auto insurance is a "necessary evil" which is necessary for all automobile owners. But it is not enough to have an insured vehicle; the main thing is to have an insured vehicle with best auto insurance. And you must know the "in and outs" of auto insurance policy.

Here we are giving some basics of coverage, which will help you greatly while selecting the best auto insurance policy for your vehicle.

Collision Coverage: This part of auto insurance policy provides you safe side when your car hits another car and you pay for the repairs, without making any difference who is at fault. Policy providing wider collision coverage can be considered as the best auto insurance policy.

Comprehensive Coverage: It covers each and every damages to your vehicle, whether it is accident or falling of a tree branch or what so ever on your car.

Deductible: This is the amount of money you pay at the time of filing a claim. Higher deductibles = lower premiums.

Effective date: This is the time period for which your auto insurance policy is valid. Don't let your policy lapsed.

Endorsements: The term endorsement includes all possible discounts and additional coverages, which can be offered to you on your car insurance. Discounts like multipolicy discount, student discount, and multifamily discount can change any normal auto insurance into best auto insurance.

Exclusions: This section includes things that are not covered by your policy. Small list of exclusions indicates toward best auto insurance policy.

Glass Coverage: You can go for free glass replacement after any accident, if your auto insurance policy includes glass coverage.

Some auto insurance policies provide other specific coverages like No-fault Coverage, Personal Injury Protection and property damage.

We hope that the provided information in this article will help you choosing best auto insurance policy.

How can you tell if an insurance adjuster is lying? Answer: Look and see if his/her lips are moving!

Yes, I know that was a corny joke that may overstate the frequency of the problem to some degree. But, this fact can’t be disputed or denied: Insurance adjusters often lie to consumers, hoping their antics will cause them to become discouraged and accept a smaller settlement than they are rightfully owed. While it is true, mistakes occasionally happen and some adjusters pass untruths out of ignorance, many others are handsomely rewarded for routinely telling blatant and deliberate lies to claimants.

In this article you will learn nine of the most frequent lies auto insurance adjusters tell. Beneath each lie, you will learn the truth.

Lie #1 You must get your car repaired

Truth: It’s your car and no one can make you do something with it that you don’t want to do. If you choose not to repair damage that is covered by insurance, as a general rule, the insurer still owes you for the full value of necessary repairs that would be required to put your vehicle into its preloss condition. But, be forewarned. If you choose not to repair accident damage on your car, your insurance company would not be required to continue insuring the car for its full retail value. In fact, if you play hardball, your insurance company may decline to insure your car altogether forcing you to shop for other insurance coverage at a time when your driving record may be marked by an accident.

Lie #2 You must go to the insurer’s preferred shop

Truth: If you choose to have your car repaired, most state’s laws allow you to authorize work at the shop of your choice. However, if you encounter problems with a shop you selected, the insurance company will be quoting the old lyric, “I told you so,” and will be little help in procuring your satisfaction. If, on the other hand, you go to a shop selected by an insurer and get deceived, or don’t receive the level of repair you are entitled to, you will be in a much better position to negotiate with the insurer, especially if there is threat of a bad faith lawsuit against them.

Lie #3 You must turn the claim in to your own company if we disagree

Truth: If you are the victim of someone else’s negligence and their insurer is trying to get you to settle for less than you are entitled, you might consider sending a demand for payment to the person that caused the damage. The fact that the negligent party bought lousy insurance coverage does not relieve them of the responsibility and obligation they have to indemnify you of damage they caused. Therefore, if the third-party insurance company doesn’t want to make full restitution to you on their policyholders’ behalf, you are under no obligation to deal with them. Simply insist on payment directly from the negligent party or pay your deductible and file a claim under your own insurance policy.

Lie #4 Repairs will restore your vehicle to its preloss condition

Truth: There are many factors that prevent a car or truck from being restored to its preloss condition. The same would be true for anything that is damaged and reconstructed. Think for a moment about a valuable vase that gets broken. Although the vase could be glued back together, even to the point that the damage is unrecognizable, it could never be as sound or as valuable as it previously was because there is a potential for failure after the accident and repair that didn’t previously exist. Likewise, during auto repairs it is economically impractical to test every component and part on a car to guarantee that it’s performance and durability are unaltered. In addition, many of the tests that would be required in making this determination are destructive by nature making them unfeasible to perform. What if the crash affected sealed electronics in your car’s dash or clutches in your car’s transmission causing premature failure of these expensive parts? What if your car’s metal becomes fatigued from being beaten, stretched, hammered, and welded on causing it to fold easier in a subsequent accident and causing late deployment of airbags? What if…

Lie #5 You Don’t need a lawyer

Truth: Insurers, oftentimes, do not take consumers, without legal representation, seriously. Let’s face it; where there is no threat of danger, there is little motive for action. As an example, you could enthusiastically warn me by shouting, “beware of the dog” until you lose your voice. But until you take the chain off or open the gate to the pen I probably wouldn’t run. In fact, I might not run even then if you have a terrier or a poodle. If however, you are saying “sic-um” to a ferocious pit bull, I’ll have a much different attitude. Insurers are no different. They pick and choose their fights. If they think you can mount a good defense against them, they will usually pay you everything you are owed. If they think you can’t afford a lawyer or a proper defense, they will most often bully you and stall your claim, sometimes forever. As in the analogy of the dog, when you unleash a lawyer that commands insurer’s respect, you will get action. But even then, don’t expect results quickly. Often, deals are made on the courthouse steps just prior to a trial. The months and sometimes years leading up to that point can be very frustrating for claimants.

Lie #6 Your car will be just as valuable after the accident and repairs as before

Truth: Most people are alike in that given the choice between two cars identical in every way with the exception being that one has been involved in an accident and the other has not, most would prefer the car with no damage history. This is true even if repairs to the car not chosen are of such good quality that you can’t tell it apart from the undamaged one. With the number of used car certification programs growing and damage disclosure to potential buyers a legal requirement in many states, the only way wrecked cars sell is if the price is cut low enough to offset the risk car shoppers take when purchasing damaged goods. The loss in market value a car suffers after being wrecked and repaired is known as diminished value (DV).

Lie #7 We don’t pay Diminished Value (DV)

Truth: In third-party claims, insurance companies are obligated to pay diminished value to claimants who prove the amount of their losses. Proving a loss is not difficult. It will, however, require that you have a post-repair inspection performed on your repaired vehicle - unless, of course, you want to take the insurer’s word for the amount you are owed. Since one of the biggest factors lessening the value of repaired cars and trucks is poor quality workmanship, it is easy to understand why it is impossible to determine the amount of diminished value without a detailed and thorough examination of the property following completion of the repairs by a body shop.

It is usually more difficult to collect diminished value under your own policy than it is in third-party cases where another person’s insurance is paying. The reason for this is that many consumers, unbeknownst to them, purchase insurance policies that have diminished value exclusions written in them. By virtue of being bound to this contract that they purchased, these consumers will be forced to forgo this portion of their claim. But, even in these cases, consumers that have purchased a post-repair inspection will often have proof that repairs failed to restore a vehicle to its preloss condition. Faced with this proof and the obligation to indemnify the policyholder, insurers are often forced to make a monetary concession - though rarely will they call it a diminished value payment.

Lie #8 You must go back to the same dishonest and/or slothful shop for rerepairs

Truth: If you didn’t have to get your car repaired in the first place, why would you feel obligated to return a second, third or forth time to get the job done right? You don’t have to and you shouldn’t. You are under no more obligation to go back to an auto collision repair shop that butchered your car than you are to go back to a barber shop or beauty shop that butchered your haircut. Some courts have even taken the position that if you go back after knowing the limited capabilities of the shop or knowing that they might be less than honest, then you deserve whatever treatment you get the second time. You know the old saying, “Get me once, shame on you; Get me the second time, shame on ME!”

Lie #9 Insurance direct repair shops are the best places to get your car repaired

Truth: Direct repair shops (DRP) are not chosen for their ability to perform high quality work. Rather, insurers choose these shops to work with based on the amount of concessions and discounts they are willing to give them in exchange for referrals. In effect, DRP shops see insurers as their customers instead of vehicle owners. Given the choice, most will favor an insurer to keep work coming in the door, even if it means lying and cheating long-time customers. There are many ways DRP shops favor insurers. As an example, many DRP agreements and contacts mandate that repair shop estimators overlook certain damages that would not be blatantly obvious to a consumer's untrained eye. In addition, it would not be uncommon for them to try to talk you into accepting an appearance allowance that represents an amount less than the actual cost of repairs to forgo repair of some damaged panels or parts. This would often be presented to you in such a way as to convince you they are doing you a favor.

Reality is, whether or not you get your car repaired, you are entitled to full value for the cost of repairs necessary to restore your property to its preloss condition. You shouldn’t settle for less!

This information is general in nature and should not be relied upon as a substitute for legal or insurance advice. Readers are encouraged to consult specialists in these fields who have an understanding of legal and insurance issues on a local, state, and national level.

Whilst many studies have shown that women deserve a lower car insurance premium, it is not because they are necessarily "better" drivers.

In fact, studies from around the world have shown that women crash more often! But, and this is the important point, because they tend to drive slower than the more aggressive male of the species, they do less damage to the cars and as a result cost the insurance companies less money as a result.

It has also been found that some women would not tell the whole truth and nothing but the truth when speaking to their insurance company. Whether this is the same with men or not it is difficult to say, but certainly there appears to be a bit of 'gamesmanship' or 'gameswomenship' going on when claims are made.

Insurer Liverpool Victoria in the UK has found that a good number of women do worry about other people they let drive their car - like their mum or their best friend!

The extra care that women take of their car can be seen by the number of cars that have names. Calling your car 'Henry' or 'Gerald' may seem a little silly to some but the extra care that this tendency reveals is a good indication of why insurance companies will offer lower prices to women who are seeking a competitive premium.

So much so, that there are specific companies (or separately branded divisions of much larger companies) that are set up to market to women exclusively, such as Sheilas' Wheels, Diva Car Insurance and Diamond Car Insurance that offer such specials as handbag insurance.

These companies then compete with each other as well as the mainstream insurance companies to give the best deal for women seeking car insurance. Of course, as with everything, the devil is in the detail and the policy differences may explain why you will be being charged a little more or a little less for this policy or that.

But they are not directed at the average man in the street, certainly!

None of the above implies support for or promotion of any company or product, and does not construe financial advice and should not be interpreted as such.

Arizona auto insurance rates can be absolutely astronomical. I should know. I live there. But there are ways to get a cheap Arizona auto insurance quote. Here's how ...

Arizona Auto Insurance Requirements

In order to license your car in the state of Arizona you're only required to have liability insurance.

Liability Insurance

Liability insurance pays for property damage and physical injury claims made against you from an accident that's your fault.

The minimum bodily injury liability coverage you must carry in Arizona is $15,000 per person with a $30,000 maximum per accident. The minimum property damage coverage is $10,000.

If you don't have a lot of assets to lose from a lawsuit, this minimum coverage, expressed as 15/30/10, may be all you need. But if you do have a lot of assets, you should get enough coverage to protect yourself from personal injury lawsuits.

Personal Injury Protection

Personal injury protection (PIP) pays for reasonable and necessary medical expenses for you and your passengers when you're involved in an accident. Though the sate of Arizona does not require that you carry this coverage, it's a good idea to carry at least the minimum coverage, especially if you don't have medical insurance.

Uninsured Motorist Protection

This pays you and your passenger's medical expenses and property damage expenses caused by an uninsured driver, an underinsured driver, or a hit-and-run driver. I highly recommend you purchase this protection because one-quarter of the residents in Arizona are driving without auto insurance.

Comprehensive and Collision Insurance

Comprehensive insurance pays for damages to you car from theft, fire, vandalism, hail, etc. Collision insurance pays for damages to your car when you're involved an accident no matter who was at fault.

To save money on comprehensive and collision insurance get the highest deductible (what you pay before your insurance kicks in) you can afford to pay.

How to Get the Best Rate

Getting the best auto insurance rate in Arizona is simply a matter of comparison shopping at a insurance comparison website. In a matter of minutes you can get quotes from a number of companies and choose the cheapest rate. Some Arizonans have saved as much as $1,000 on their insurance by comparison shopping.

Looking for full coverage auto insurance quotes? Want to get the most coverage for the least amount of money? Here's how ...

Full Coverage Auto Insurance

Full coverage auto insurance pays for medical expenses, repair costs, and liability law suit expenses when you're involved in an automobile accident. It also pays for expenses if you're hit by an uninsured or underinsured driver. Here are the various coverages you should have and how you can save money on them.

Liability Insurance

Liability insurance pays for claims made against you, plus your legal fees, if you injure or kill someone. It also pays for claims made against you when you damage someone else's property.

Imagine what would happen if someone won, say, a $500,000 lawsuit against you? Would you be able to pay it? Probably not. That's why liability insurance is so important.

If you don't own a lot of personal property you may want to carry the minimum liability insurance your state requires. If you do own a lot, then you'll want to increase it to cover your assets.

Personal Injury Protection Insurance

PIP pays medical expenses for you and your passengers when you have an accident. It also pays for you and your family's medical expenses if you're in another car.

If you have medical insurance you may want to skip this coverage. But if you don't, or if you live in a high-accident area, then you should purchase it.

Collision and Comprehensive Insurance

Collision coverage pays for damage to your car from an accident no matter who was at fault. Comprehensive coverage pays for damage to you car from fire, theft, vandalism, storms, etc.

To save money on collision and comprehensive coverage you'll want to get the highest deductible you can afford to pay. If you drive an older car that's worth less than your annual premium plus your deductible, consider dropping these coverages.

Uninsured Motorist Insurance

Uninsured motorist insurance pays for medical expenses and property repairs caused by an uninsured, inderinsured, or hit-and-run driver. This is good coverage to carry, especially if you live in states that have a large number of uninsured drivers like Alabama, Arizona, California, Mississippi, and New Mexico.

How Get The Cheapest Full Coverage Auto Insurance

The best way to get the cheapest full coverage auto insurance is to get quotes from an auto insurance comparison site. Here you can compare quotes from different companies and choose the best policy with the lowest rate.

Getting better rates on your auto insurance is something that many people would like to do. So many are paying a lot of money, too much money - and doing it unnecessarily. By following a few simple steps, you could reduce your annual auto insurance costs, and save some money for those other projects you would like to do. Here are five steps that will enable you to reduce your costs.

1. Compare Car Insurance Quotes

This is one of the easiest things to do, because you can do it at any time of day, just by going online. You will want to find an insurance Web site that will allow you to get several quotes from different companies with just one application. When you do this, go to at least two different Web sites and get several quotes from both.

Before you get that new car insurance policy, however, you may want to do a little research to discover some things about the company – if you are not familiar with that name. You might check with the Better Business Bureau to see if there are many complaints about them not paying for accidents, etc.

2. Read About Car Insurance

In order to really understand what you may be able to do without, in the way of options, you should have a good understanding of what the options cover. Greater savings will come from a greater understanding of what your needs really are. For instance, if you have a brand new car, you may not need the towing option for at least a year or two. You may also be able to do without car rental, too.

3. Increase Your Deductible

This is one thing that can give you a noticeable reduction. By increasing the amount of money that you pay in each accident, you put the insurance company at less of a risk. They like this, and will lower your rates to reflect the amount that you increase your part. Be sure, though, that if you have an accident tomorrow that you can afford to pay the deductible. You will be required to pay it before the auto insurance company will pay their part.

4. Get Less Coverage

Instead of buying the most coverage you can, it is a good idea to get the recommended amount. Also, if your car is more than 10 years old, you should probably drop the comprehensive part of your auto insurance. After 10 years, you may be paying more for your comprehensive than the car is worth. Save this money instead, and apply it to getting another, newer car.

5. Add Security Features To Your Car

If you live in a more urban area, or in an area where there is car theft, you can lower your car insurance rates by adding some security features to your car. These usually result in a discount with each new feature you have. This includes steering wheel locks, auto alarms, and satellite tracking systems.

Besides these things, you may want to talk to your car insurance agent to see if driving classes will also lower your rates. Having multiple cars insured by the same company, and staying away from cars that are the most likely to be stolen, or sporty, will reduce your rates, too.

The best advice for getting a cheap car insurance quote is to shop around, and the best advice for shopping around is to compare the car insurance quotes of each company.

There are several ways to compare cheap car insurance quotes from several car insurance companies:

Make a list. Ask your family members, friends, and even co-workers with whom you’re close about the car insurance companies they use. Chances are they’re not all doing business with the same car insurance company, so you’ll be able to get truthful reviews of several different car insurance companies. Take note of those that interest you, and forget about those that don’t.

Ask about discounts. Once you have your list of possible car insurance companies, call each one and ask about discounts. Many car insurance companies offer discounts for classes taken, good driving records, vehicle safety features, and multi-car policies. Some insurance companies sell more than just car insurance, and will offer discounts if you buy or already have other insurance policies from them. Compare the discounts offered by each as those discounts will help determine your cheap car insurance quote. Take note of the car insurance companies that offer discounts relevant to you.

Pay attention. Ideally, you’re looking for a car insurance company with which you can do business for a long time. So, the customer service must be stellar, right? As you talk to an agent from each car insurance company you call, really listen to the rapport. Are they friendly? Do they have immediate answers to your questions? Do they sound as if they’re in a hurry to end the conversation?

Price vs. Options. When you compare cheap car insurance quotes, you shouldn’t only be interested in the price – you want to get a car insurance policy that offers options you need. What’s the point in paying a cheap car insurance payment if you’re sacrificing crucial car insurance coverage and protection?

In today’s world, you can look just about anywhere and see at least one person talking on a cell phone; sadly, the road is no exception. More and more drivers are taking to the roads with cell phones to their ears; as a result these drivers are causing a greater risk for automobile accidents. Of course, we all know the consequence of increased automobile accidents – increased automotive insurance.

Despite the statistics conveying the relationship between drivers using cell phones and a percentage of automobile accidents, many drivers continue to chat while driving, and many of those drivers will be involved with another driver who is using a cell phone will driving. When you’re involved in an automotive accident, regardless of the cause, your automotive insurance rates usually increase. If you are at fault and it’s determined you were using a cell phone at the time of the accident? Let’s just say your automotive insurance company won’t be happy.

If you are one of the drivers who likes to gossip using your cell phone while driving, stop. Nothing is so important that you must risk your life, and the lives of others, in order to tell your best friend, your significant other, or your sister or brother. Even if you’re a parent and, while on your way home from work, remember you must tell your spouse to pick up the kids from school – pull over.

If you are a parent with teens who are driving, or almost ready to drive, instill the responsible habit of not using a cell phone while driving. They are even less experienced drivers than their elders, and don’t need the extra distraction.

Remember, practicing the safe driving habit of not using a cell phone will driving will not only help you lower, or keep low, your automotive insurance rates, but it will also help you keep yourself, and others, from being seriously injured and even killed.

There are many factors that help determine what your car insurance rates will be all over the country. By taking advantage of, or eventually altering, these factors, you can find cheap car insurance in New York.

Take a look at where you live. Car insurance companies determine the cost of a car insurance policy based on underlying costs. In other words, the car insurance company will look at the number of claims filed in a particular area, as well as how harsh the losses of each claim were. If you happen to live in an area with a high rate of claims and losses, you may pay more for your car insurance in New York.

Use every discount you can. It may sound desperate now, but since New York car insurance companies offer so many discounts it would be pointless not to take advantage of them. Just a few of the discounts offered by car insurance companies in New York include classes and programs such as accident prevention, driver training, and the Combat Auto Theft Program; vehicle components such as anti-lock brakes, air bags, automatic safety belts, and anti-theft systems; special company discounts for drivers who are accident free or considered “careful drivers;” and regular car insurance discounts such as those gained by purchasing more than one policy from the same New York insurance company or having more than one car on your car insurance policy.

Raise your deductible. This means you will pay more out-of-pocket in the event you have an accident, but if you’re considered “accident free” or a “careful driver” you aren’t at a high risk for accidents anyway.

Of course, you can always find cheap car insurance in New York by working on your driving record and waiting until you get a bit older and are considered less of a risk. These options for cheap car insurance in New York apply to the here and now.

In Florida, the car insurance requirements are as follows: $10,000 for personal injury protection, also known as PIP, and $10,000 for property damage liability, also known as PDL.

Floridians are not alone when it comes to having state-imposed car insurance requirements. All states in America require minimum car insurance requirement. While some people choose to satisfy these car insurance requirements by purchasing their policy through an insurance company, other people choose to be “self-insured,” or to put down a bond that will cover the amount of the car insurance requirements. How you choose to show proof that you have met your state’s car insurance requirements is up to the state.

In Florida, these car insurance requirements must be met by every driver or vehicle owner who wishes to register and purchase tags for his vehicle. No one can opt not to purchase the car insurance requirements by rationalizing he just will not register and tag his vehicle. Vehicles must be registered and tagged in order for the car to operate legally on the roads. The minimum car insurance requirements also apply even if you are not driving your car in Florida, or if your car is not operative. If your car is registered and tagged in Florida, you must have the Florida’s minimum car insurance requirements.

Sometimes drivers are required to purchase bodily injury protection, too; these cases usually fall into the hands of drivers who have been in an accident or drivers who have been convicted of an offense such as driving under the influence (DUI) or driving while intoxicated (DWI).

Before you begin your search for a policy that meets Florida’s car insurance requirements, make sure you are eligible to have that minimum coverage – not all drivers are. If you have borrowed money to purchase your new car, your lender will undoubtedly require you to purchase more than Florida’s minimum car insurance requirements until the debt is paid.

The easiest way to get a free, cheap car insurance quote is to get it online. There are seemingly thousands of Web sites today that offer free, cheap car insurance quotes. Not only does the abundance of Web sites make it easy to get a car insurance quote, but it makes it easy to get multiple car insurance quotes. In the time it would take you to visit a number of different car insurance agencies, you could get twice the number of car insurance quotes without leaving the comfort of your home!

Before you begin searching for your free, cheap car insurance quote, you should have some information prepared. Each car insurance Web site will ask you a variety of questions, and you do not want to have to leave the computer to search for long lost paperwork.

Be prepared to provide the following information to get your free, cheap car insurance quote online:

• Basic information about yourself (name, contact, address, whether all of your vehicles are located at this address)
• Personal information about yourself (birth date, gender, marital status, the date you obtained your first driver’s license, employment status, etc.)
• Your current insurance status
• Basic information about your car (year, make, model, safety elements, where the car is driven, how often the car is driven, etc.)
• The number of drivers who regularly drive your car, as well as basic information about them (age, gender, how long they have been driving, etc.)

Most of this information will be easy for you to provide; however, some car insurance Web sites that provide free, cheap car insurance quotes dig a bit deeper and ask more detailed questions about your car such as the exact mileage, while some as for the specific information about your current car insurance policy. Aside from collecting the above information, you may want to keep your current car insurance policy handy for reference.

If you are looking for a cheap car insurance quote for free, you are in luck! Most insurance companies that offer car insurance usually always offer car insurance quotes for free. So, the trick is not getting the cheap car insurance quote for free – the trick is getting the cheap car insurance quote!

Many times your car insurance quote is based on your answers to a series of questions the car insurance company will ask you. Most car insurance companies will want to know information about yourself, your vehicle, your driving history, and information about anyone else who will be driving the car and will thus be included on your car insurance policy.

Yourself

These questions usually pertain to your age, how long you’ve been driving, and any health conditions you may have that affect your driving.

Your Vehicle

The answers to questions regarding your vehicle will give the car insurance company an idea of how at risk your vehicle is for being vandalized or stolen, as well as how safe you and your passengers will be in the car.

Your Driving Record

Traffic violations and accidents do not impress car insurance companies, so keep them to a minimum, or nonexistent. If you have a few, talk with the car insurance company about ways to redeem yourself, such as defensive driving courses.

Other Drivers

These questions usually pertain to new drivers who will be driving your vehicle, though they may cover all other drivers; they most always pertain to the driving experience of the drivers.

The answers to some of these questions are unavoidable, such as your age and health, while others can be changed such as the type of vehicle you drive. Remember, you do not have to check out just one car insurance company – there are many out there, and you may find the same quality car insurance policy at another car insurance company for a cheaper price.

Diminished Value is the best-kept secret that your auto insurance company hopes you never learn. While the term, diminished value, may be a relatively new one to consumers, insurers are well aware of its existence, having paid claims to both insureds and claimants for more than eighty years.

What is Diminished Value?

Diminished Value is the term given to the loss in market value a vehicle suffers as a result of an accident and repair. It is a loss based on the beliefs of most people, that once goods become damaged, they are never as valuable as they would be had they never suffered injury.

Let’s say you are in the market to purchase a used car and run across two beautiful cars sitting side by side, both identical down to the last detail, offered for sale for $20,000 each. They are equipped the same, have equal mileage, and equivalent wear. The only exception, you are told, is that the car on the right has been involved in an accident at some point in its history. Considering that both cars are equally priced, would you rather purchase the damaged and repaired car or the one that has never been damaged?

If you are like most people who have answered that question on surveys, you will have chosen the car on the left - the undamaged one - unless, of course, you could negotiate a significant reduction off the selling price of the repaired car. How much of a reduction would it take to make you want the repaired car over the undamaged one? Figure that out and you will have determined the amount of diminished value that particular car suffered because of its damage history.

Causes of diminished value

There are many factors that cause repaired cars to become less desirable to buyers and lose market value, the most obvious being poor quality workmanship and use of inferior parts made by sources other than a vehicle’s original manufacturer. But there are a host of other, less obvious, factors that contribute to diminished value as well. Some of these are the loss of factory transferable warranty coverage on damaged and repaired parts, increased title and disclosure obligations, and the loss of eligibility for inclusion in manufacturer’s preowned certification programs.

Categories of diminished value

While an exhaustive list of causes would be too lengthy to include in this article, most fall into one of three categories.

Inherent Diminished Value:

The first is inherent diminished value, which considers factors beyond the power of shops and insurers to rectify. A perfect example of this is the perception that people carry in their minds that makes them distrustful of repaired cars. While these perceptions are the fault of no particular party, still they exist in people’s minds and are believed to be real, causing thousands of dollars in losses for consumers who wish to market their repaired automobiles. It should also be noted that inherent diminished value could occur even when cars are expertly repaired because in many cases it is simply not possible to talk some people into the purchase of a repaired car at any price when they are not open to taking a risk.

Insurers, too, understand diminished value and reluctantly admit to its existence when their backs are to the wall. During State Farm Mutual Automobile Insurance Co. v. Mabry, 274 Ga. 498, 501; 556 SE2d 114 (11/28/2001), a lawsuit that caused insurers to begin paying diminished value claims as a normal course of business in the state of Georgia, State Farm provided testimony under oath confirming that the potential for diminished value exists in every claim, even when cars appear properly repaired. Georgia Supreme Court Justice Robert Benham wrote the following November 28, 2001, recounting the testimony of State Farm's witnesses and documents it presented during discovery:

“... The first question, whether diminution in value occurs even when physical damage is properly repaired, is one of fact. The trial court found that there is a potential for a diminution in value loss in every event of loss, and that diminution in value can occur even when a vehicle is repaired properly. In support of those findings, the trial court relied primarily upon documents produced by State Farm during discovery and upon the testimony of State Farm’s witnesses. The documents from State Farm acknowledged that there is a common perception that a wrecked vehicle is worth less simply because it has been wrecked. Witnesses for State Farm testified that a potential for diminution in value exists in every automobile accident, and that the public perceives a loss of value in any wrecked vehicle and would choose an unwrecked vehicle over a wrecked one, assuming the vehicles are otherwise the same ...”

What was proven true in 2001 is still true today. Diminished value is a reality, even in cases where repairs eliminate all visual evidence of damage.

Shop Related Diminished Value:

Shop related diminished value is usually the result of poor quality workmanship on the part of repair shops. Mismatched paint, ill-fitting parts, rattles and wind leaks are example of shop related diminished value. If shops accept money from customers for performing particular labor functions, they have an obligation to perform the work correctly. When they don’t, evidence of their shoddy job is often visible for all to see, helping decrease the price a potential buyer would willingly pay for a repaired automobile.

Insurance Related Diminished Value:

Insurance related diminished value results when insurance company claims adjusters, either intentionally or unintentionally, omit needed repairs from an accident victim’s settlement. It may also occur when sufficient payment isn’t made to allow shops to perform repairs as a carmaker intended. As an example, poor-fitting aftermarket parts may cause insurance related diminished value when insurers specify their use instead of original equipment manufacturer’s (OEM) parts.

Getting paid for diminished value

When it comes to getting paid for diminished value, three misconceptions abound.

First, many believe that a claim for diminished value is a claim separate and distinct from the one paying for actual physical damages like bent fenders and doors. This is not true. Rather, diminished value is an element of recoverable damage in the same claim that occurred at the same time, during the same event. An insurer that accepts liability and pays for any damage, must, where proof exists, pay for all the loss, except in cases where an exclusion in the policy exempts insurers from doing so.

Second, many believe one must sell his/her car to collect a diminished value claim from an insurer. This is another untruth. Insurers simply keep this myth alive to stall claims payouts for as long as possible, knowing the statute of limitations will eventually run out preventing a consumer from ever pursuing a recovery. Diminished value, like other elements of loss, is owed as of the date it actually occurred, not at some far-off unidentifiable point in the future.

Third, many believe that courts across the land have banned diminished value claims, labeling them as bogus. Again, this phony spin only benefits insurers who hope not to have to pay these claims. While it is true that some diminished value class action cases about a decade ago got tossed from courts by judges, it was because the lawyers could not show sufficient commonality to sustain a class of members, NOT because diminished value claims have no merit. Other cases have failed because claimants were unsuccessful at proving to the courts that their repaired cars were in some manner compromised despite best efforts to repair them correctly.

Conclusion

If you want to collect on a claim for diminished value, the burden of proof is on you to authenticate your loss. Sadly, the factor that most often prompts settlement of any claim, including that of diminished value, is the threat of litigation. Insurers pick and choose their fights. If they think you have the means to hire a lawyer and pursue a recovery, an insurer may consider you a threat and pay your claim for diminished value without too much resistance. However, if an insurer considers you to be a weak opponent, the claims adjuster will likely try confusing you with slick word tracks, ultimately stalling you for as long as possible.

For a quicker resolution, you can always forgo the diminished value claim with an insurer and take the loss against income taxes you owe. Still, you will have to substantiate your loss and will need the services of an expert to do that for you. Despite insurer’s obstinacy to the contrary, diminished value is owed where a loss can be proven, and those who are persistent stand the best chance of being paid.

This information is general in nature and should not be relied upon as a substitute for legal or insurance advice. Readers are encouraged to consult specialists in these fields who have an understanding of legal and insurance issues on a local, state, and national level.

Car insurance is something we all need but it is probably not the kind of thing that we think of to shop around, like a stereo or new TV. But this is something that we all should do every now and then, like every couple of years, instead of just assuming that we are getting our best rate with the carrier we have now. We need to simply make sure that we are still getting the best car insurance value for the money. It goes without saying that there is always a new guy on the block offering even more competitive car insurance.

When you shop around for car insurance, be very cautious if you think you have discovered a better quote. You do not need to be an expert in insurance terminology to find out that you are not comparing apples to apples. For example, if everything looks the same on two policies, look again. Oh yes, one has a $300 deductible and the other one has a $1200 deductible. That is a major difference.

Should you shop for car insurance online? Absolutely, beyond a shadow of a doubt. But again, be careful. There are no guarantees that just because you found it online means that it is a competitive quote. You need to examine the fine print very carefully, because many times your local insurance agent can do better than what you see there. Although there are many considerations, one of the primary considerations is your driving record, and if you have had good luck with no tickets and no accidents in many years, then you should be a very good shape for getting an aggressive quote, either online or from your local insurance agent.

But if your driving history lacks a little luster, maybe you have an accident or two, maybe combined with a ticket or two, it is going to be tougher to find a good quote for car insurance. It will not be impossible, but you are going to end up paying much more than you would like to.

One of the hard facts of life is that you need to have car insurance if you are going to drive a car on public roads and highways, and almost all states have a requirement to that effect. So given that, do not forget to add the cost of the car insurance that you must carry to the cost of your car payment. Maybe you can afford the car payment, but after you add in the insurance, it’s just out of your league.

There are many factors that go into pricing car insurance, and one of the main ones is the type of car you want to insure. It does not require a rocket science degree to figure that the cost of insuring a late model Lincoln Town Car is going to be much more than a late model Kia. The overall value of the car is taken into consideration as well as the cost of repairing the car if it gets into an accident. In the same way, a car’s crash safety test records indicate how safe the driver is in an accident, and the cost of the car plus the cost of medical bills play into computing insurance costs also.

So shop around and get your best quote for car insurance. Check online pricing but do not assume that that is as good as it gets. The time you put into your shopping will be directly reflected as savings in your wallet.

It can pay to do some comparative shopping when you are seeking to buy car insurance, as price quotes can vary quite a bit from company to company. This certainly applies if you are seeking estimates on the Web, as studies have shown that the quotes offered by different companies on the Web can vary by up to 80%. Nobody wants to pay more than necessary for auto coverage, so it is worthwhile to devote some time to attempt to find the best deal for your vehicle.

Here are a number of tips that may make it easier for you to search for auto coverage on the Web:

Be skeptical of price quotes that are way out of line with the others, especially if they are overly low. The low quote might be due to a mistake on the part of the Website or a mistake on your part. You need to follow up any online estimate that interests you with a phone call. The majority of estimates should come within a reasonable range; if one quote is only one third of the others, you're almost certainly looking at an error.

Be sure that you are comparing identical things - Estimates could vary from site to site because the parameters of your search could be different. Be sure when you complete the online forms that you are seeking estimates for exactly the same coverage. Estimates that vary significantly do not always mean that one company is more affordable; it might mean that you were not careful to compare the same two things. If one Website provides a quote for comprehensive coverage while another is offering an estimate for just liability, the results will vary quite a bit.

Don't assume that the quotes are always accurate. For some reasons, many online price quotes are simply not accurate. You may find that the estimates offered vary from the price you will have to pay if you call an insurance agent. You should verify the estimate with a telephone call.

Check out at least ten different sites. You can review the two or three companies that offered the most reasonable prices for additional comparisons. Estimates can vary so dramatically from one company to another that it really is worthwhile to check with many different companies. The more information you have, the more educated your decision will be.

Take care to do it right, as a little diligence when looking for insurance might save you a lot of cash. Shopping for auto coverage is like shopping for anything else; it takes time to locate the best price.

Are you fed up with your current car insurance company? Or are you just purchasing your first car and need to purchase car insurance? In either case, it's time for you to learn how to pick the best car insurance provider for your situation.

It Isn't as simple as just picking a Company.

It would be nice if getting car insurance were as easy as simply picking a company and sticking with them. While this approach may work for some who are OK with potentially paying more money than they should, it definitely does not work well for the average car owner. That's because the average car owner wants to get the best bang for their buck.

The internet has made the process of picking a car insurer very easy. By going to sites like Progressive.com, Statefarm.com, Esurance.com, and Geico.com, you can easily search through quotes for car insurance. Since car insurance can vary widely from company to company, it's important for you to get as many quotes as possible.

You may also want to go into your local car insurance business and ask for quotes from them. In some cases, local auto insurer quotes will be cheaper than those found on the internet.

Unfortunately, even if you get a ton of quotes, you may still find that the insurance is a lot more than what you're willing to pay. The good thing is, there's something you can do to get the cheapest quote possible: you can use the tips in the next section for getting cheaper quotes.

Tips for Lower Auto Insurance

Believe it or not, but there are things you can do on your part (besides having a good driving record) to increase the likelihood of getting lower car insurance quotes.

Tip #1: Accuracy

You've probably noticed how utterly daunting auto insurance quote forms are. They're full of several questions, and by the time you've gotten halfway through filling it out, you're ready to quit. Did you know that how accurately you fill out the form can have a great effect on how much you pay for insurance? Well, it can and it does have an effect. That's because there are certain discounts you may be eligible for (such as residency and marriage) and if you don't properly fill out the form, you'll miss out on these. So pay attention to every single question and fill it out to the best of your ability.

Tip #2: Shop Around

One auto insurer may charge you $1000 for auto insurance, while another one may charge you $650 for auto insurance with the same conditions. Insurance quotes greatly vary, which is why you should shop around before settling on any insurance plan.

Tip #3: Don't Get Too Much Coverage

It's definitely a good idea to get comprehensive coverage for a brand new car. It's not such a good idea, however, to get the same coverage for an older model. The amount of coverage you get obviously influences the overall cost of the insurance, so the less coverage you get, the lower the price. When the collision premium equals 10% or more of the car's value, it's time to consider dropping the collision premium which can save you hundreds of dollars.

Tip #4: Raise the Deductible

The deductible is what you'll pay should something happen to your car. If you set the deductible to $200, you may end up paying hundreds more in premiums each year. But if you raise the deductible to $500, you can save hundreds of dollars.

Tip #5: No Extra Coverage

Some aspects of auto insurance coverage aren't really worth the extra $100-$400 a year. One such coverage that is worth getting rid of is the Rental Reimbursement coverage. This coverage pays for rental costs on the outside chance that your car has to go to the shop for a day or two. It's really not worth the extra money you'll pay for the coverage, so it's something you should get rid of to save money.

Driving drunk is a very dangerous thing to do, and can result in a variety of different consequences. If you are convicted of a DUI you will have to deal with points on your license, drivers license suspension, high fines, attorney/court costs, and more. While these items just mentioned tend to be short-term consequences, you may not have considered the long-term consequences that can arise if you're convicted of a DUI. If you're convicted of a DUI your car insurance rates and even your ability to have insurance coverage will be affected.

Higher Rates
More than likely your insurance company will be notified if you're convicted of a DUI. If the company does not suspend your insurance coverage, more often than not, you can wave goodbye to low rate car insurance for a long period of time. If you don't like the higher rates your current company wants to charge you, you can try changing insurance companies, but even changing typically won't save you money because you'll be labeled as a high risk driver, which will result in you paying higher car insurance rates wherever you may go. More than likely your insurance company will have to send an SR-22 Proof of Insurance Certificate to the state showing that they are covering you, in order for your drivers license to have your license suspension removed.

Cancellation
In some cases, if you have been convicted of a DUI, some car insurance companies will actually cancel your insurance policy. Not all companies can issue an SR-22, so this can result in your car insurance policy either being canceled or the company not renewing your policy at your current renewal date. Although some states may not allow your insurance company to cut off your coverage in the middle of your plan, they can stop covering you when your renewal dates come around. If you have questions about cancellation policies, you may want to review the laws in your state or sit down with your agent.

Available Insurance
If you end up having your current insurance policy canceled or not renewed, there are a variety of companies that will be able to offer you car insurance coverage. While you'll be able to find coverage, your new car insurance rates will still reflect the fact that you have a DUI on your record. In some states the DUI is only on your record for five years; however, other states may keep it on your record for life.

Being convicted of a DUI can have a variety of different consequences, both short-term and long-term, and there is a good chance that it could affect your car insurance rates for the rest of your life. If you are interested in keeping your car insurance rates low, plain and simple, don't ever drive drunk. Driving while intoxicated is just a very bad decision. It not only comes with financial consequences, it puts you and others at great risk safety-wise as well. Before you decide to get behind the wheel of a car after drinking, make sure you take a moment to think about the consequences that can last a lifetime.

Whether you have car insurance or are shopping for a quote, you may not think about rental car reimbursement. Is it worth it? If you're trying to save on your auto insurance, you may not want to pay for this coverage but here's something to keep in mind.

Rental car reimbursement coverage is usually an optional add-on to your car insurance policy that will help pay for a rental car -- for a limited number of days -- while your vehicle is being repaired due to a loss. For example, the coverage may pay $20 per day for 30 days toward the cost of a rental car. The coverage typically costs a couple of dollars a month.

Depending on the time of year, the type of rental car, the rental car agency, where you live and other factors, you could end up paying anywhere from $25 to $75 per day for a rental car. Now consider how long it could take to repair your car. The body shop tells you three to five days. Four days later they call and tell you they had to backorder a special part. It will be another four to five days. You call five days later and they tell you the part won't be in for another week.

Before you know it, you've been renting a car for almost three weeks. That could add up to several hundred dollars depending on how many days you rented the car during that period. With the rental reimbursement coverage, you would be able to pay substantially less.

I went through a similar experience as above, and ended up using the rental reimbursement coverage. For me it was worth it because I really needed to get around town and didn't have a lot of extra cash.

You have to assess your needs and finances to decide if you should add this coverage or not to your auto policy. When you comparison shop for car insurance quotes, find out what the difference is with and without rental reimbursement coverage. You may just consider it worth it for the peace of mind.

You may have heard that car insurance companies cancel people's insurance if they have had a claim. Typically that's not true, however if you do have a claim that the insurance company believes is your fault you may pay a higher premium. Here's what you can do.

Car insurance companies basically base the rate they charge you on their risk assessment of how likely you are to cause a loss. In other words, if are getting auto insurance quotes and you have a history of speeding tickets, or have filed claims with other insurance companies recently for accidents you caused, you'll probably pay more than if you had a clean driving and claim record.

With that being said, if you file a claim with your current insurer they'll analyze the type of claim and who was at-fault to decide if you have now become a greater risk. If they think you have, then you may end up with a higher premium. Depending on the company, and the number and types of claims you file, they may not renew your policy at renewal time.

If your car insurance rate is raised because of a claim you'll probably want to do some comparison quote shopping. Rates vary from company to company and you may be able to get a lower premium. However, make sure that when you are requesting car insurance quotes to tell the truth about your driving and claim history. Insurance companies will find this information out when they go to underwrite your policy and you could end up having to pay more -- or even be cancelled -- because you weren't truthful.

Make sure to get at least three comparison car insurance quotes and provide the same information to each company or agent. If you're concerned about paying too much because of your claim, there are ways to lower your insurance costs by raising deductibles or asking about discounts.

A certain type of car insurance policy is known as SR-22 insurance. What is SR-22 insurance and why would you need it?

SR-22 insurance is really a certificate that is required to provide proof of liability insurance for a variety of reasons, depending upon the state you live in. Usually, you would need an SR-22 if your drivers license has been revoked or suspended and you've just got it reinstated.

The certificate lets the motor vehicle department know that you have enough liability insurance to cover the minimum required limits of liability for your state. The car insurance company that provides the SR-22 is required to notify the state motor vehicle department if your insurance coverage lapses or is cancelled. If that happens, you usually need to reinstate your insurance or your license can be suspended until you have coverage again.

Drivers who are required to have SR-22 insurance usually need to carry it for a certain period of time after their license is reinstated. This could be three years, five years, 10 years and in some cases even for life.

One of the biggest reasons a state requires SR-22 insurance is when a drivers license is reinstated after a DUI (Driving Under the Influence) or DWI (Driving While Intoxicated). However, some states may require this for different reasons. Other reasons include being convicted of driving without insurance, having an uninsured accident that you are at-fault, excessive moving violation tickets and more.

Not all car insurance companies provide SR-22 insurance; usually only companies that specialize in high risk auto insurance offer it. If you need an SR-22, you'll have to do some shopping around. Since you're considered a high-risk driver, you'll probably have to pay a higher premium. If possible, try to get at least three quotes from different companies for comparison.

If you're driving around without car insurance you are probably breaking the law and certainly tempting fate. Here's why you should get it as soon as possible.

All states have some sort of financial responsibility law that requires owners of vehicles to provide proof that they are financially responsible for injuries and damages their vehicle causes. Each state is different in their minimum requirements. The most common proof of financial responsibility is to purchase car insurance.

Each state also has different penalties for driving without insurance. These penalties can range from several hundred to several thousand dollar fines, vehicle impoundment and even jail time. The threat of those penalties should be enough of a reason to purchase auto insurance.

What could even be more costly is if you are in an accident that is your fault and you don't have car insurance. On top of the fines, you could be responsible for paying all of the medical bills of the injured, plus paying for all of the property damage you caused. You may be sued and the costs of not having car insurance could be several hundred thousand dollars -- or much more.

When you purchase car insurance, you need to get the minimum coverages as required by your state law. These are typically called limits of liability for Bodily Injury and Property Damage. An insurance agent can tell you what those minimums are, or you can contact your state insurance department.

When you shop for an auto insurance quote, get at least three different quotes because rates can vary from company to company. That's really the number one way to save on car insurance. If you've been driving awhile without auto insurance, a lot of companies may not want to insure you. At the very least, you'll probably have to pay a bit more than someone who has already had car insurance and has a clean driving record. Again, make sure to check out several different quotes.

You may have seen cheap car insurance advertised on the Web, or maybe you've wanted a cheap auto insurance quote. What does "cheap" mean when it comes to your car insurance?

The word cheap in my Webster's New College Dictionary is defined first as "Relatively low in cost." Now when it comes to car insurance shopping, that makes sense. We all want to save money on our insurance. So how do you do that?

One of the best ways to find car insurance that's "relatively low in cost" (okay, cheap), is to comparison shop. Auto insurance rates can be quite a bit different from one company to another. The Insurance Information Institute, and others, recommend that you get at least three different quotes. Make sure to submit the same information to each company or agent to get an accurate comparison quote. For example, use the same deductible amounts, same limits of liability etc.

Also, try to take advantage of as many discounts as you can. These would be discounts like:

Good student

Good driver

Anti-lock Brake System

Anti-theft device, and more.

The word cheap can also mean "of decidedly inferior quality." Now that's the kind of car insurance you want to avoid. After all, auto insurance is there to protect you financially from a future event. If the company is "of decidedly inferior quality," they may not be able to pay your claims in a timely manner in the future. How do you tell if a car insurance company is reputable? It's hard to know 100 percent, but at least check the following:

1) Check to see if the company is licensed in your state.

2) Check the financial ratings of the company through the agencies that rate insurance companies. These are A.M. Best, Weiss, Fitch, Moody's and Standard & Poor's.

3) Try to get a feel for their customer service. How do they respond to your calls, e-mails, etc.

Cheap car insurance is available online, but just be sure you're getting the "cheap" that will save you money, not give you headaches.

Being able to find car insurance quotes online has made it much easier and more convenient to shop for car insurance. The Internet has been a blessing to both the Insurance companies and the consumers who want quick access to a wide range of car insurance providers. By shopping for car insurance quotes online, within just a few minutes, anyone you can discover reasonable auto insurance rates from their own home or officer computer.

The benefits of obtaining online car insurance quotes online are numerous. First of all, you have the extraordinary ability to compare and contrast between insurance policies online, by simply flipping between windows, or, in some cases, taking advantage of specialty insurance brokers who will send you accurate cost quotes quite rapidly.

If the marvelous convenience of getting car insurance quotes online was not enough, some insurance companies actual offer discounts if you buy your car insurance online, because it saves them the problems of having to deal with you directly. By selling car insurance policies online, these companies save on their expense for labor, time, postage, paperwork and much more. Most car insurance companies will pass some of these saving onto you, the customer.

A warning about getting car insurance quotes online. When you are searching for possible insurance providers online (or any other personal monetary investment for that matter), it is extremely important to be bit skeptical of what you find. While the Internet has enhanced our daily lives and simplified such purchases as car insurance, there are "con" artists out there waiting to take advantage of you. For every legitimate car insurance company online, there a probably two or three "boiler room" operations that will make false promises to get your business.

For this reason, you should be prepared to do a bit of extra online research into the companies or agents of interest. The Internet is good place to research the reputation of your intended company. See if others may have had problems, or whether current customers are pleased with the service provided. Consumer websites can also offer helpful advice and recommendations to assist you determine which car insurance quote is right for you.

Once you have determined which company seems right for you and your vehicle, make sure your insurance details are processed over a secure server, and that full customer service is available once you have made your purchase. Ask plenty of questions, and do not be afraid to search for a provider that offers you a good deal as well as making you feel comfortable and satisfied about the customer service you receive.

Buying car insurance online is a terrific way to save both time and money. As always, though, take some time to read those terms and conditions (the small print) very carefully. Remember, this is all about insurance, and you not only want to save money, you want quality coverage as well.

California has some of the highest auto insurance rates in the nation. So where can you get cheap California auto insurance quotes? Read on ...

Minimum California Auto Insurance

In order to license your car in the sate of California you're only required to have liability insurance. This pays for damage to another person's car or property when you're at fault in an accident. It also pays for any medical expenses they or their passengers may incur, and compensates them for pain and suffering.

Liability Coverage

The minimum liability coverage in California is 15/30/5. That means you need to have $15,000 coverage for injuries to any one person in the other car, $30,000 coverage for injuries to all persons in the other car, and $5,000 coverage for damage to the other person's car or property.

If you don't have a lot of assets the minimum liability coverage may be enough, but if you have assets you want to protect from a lawsuit, you should increase your liability insurance to cover them.

Optional Coverages

Collision - This pays for repairs to your car no matter who was at fault. If you drive an older car that's not worth much, consider eliminating this coverage. If you drive a late model car you can save money by increasing your deductible.

Comprehensive - This pays for damage done to your car by anything other than a collision - fire, vandalism, theft, hail, etc. If you have an older car you may want to skip this coverage. If you drive a newer car, increase your deductible to save on your premium.

Personal Injury Protection - This pays for you and your passenger's medical bills when you're involved in an accident. If you already have medical insurance you can consider doing without this coverage.

Uninsured/Underinsured Motorist - This pays for you and your passenger's medical expenses and damage to your car caused by an uninsured, underinsured, or hit-and-run driver. One-quarter of the drivers in California are driving without a license, so this is good insurance to have.

Cheap California Auto Insurance Online

Because rates can vary dramatically from one company to the next in California, the best way to get the cheapest rate is to compare quotes from different auto insurance companies.

In the excitement that comes with leasing a vehicle, you may not be considering how your current auto insurance requirements may change. However, an auto lease will often carry some important insurance requirements that are part of the lease agreement. You can avoid unpleasant surprises if you plan for the change in your auto insurance situation before you finalize your lease.

When you are driving a leased vehicle, it still belongs to the leasing company. They will want to make sure that their vehicle is covered for physical damage in case of an accident. In addition, they will also want to make sure they will be covered in case of any liability if you are found to be at fault in the accident. You will be required to carry comprehensive and collision coverage on the vehicle, which will cover it for physical damage, usually with no more than a $500 deductible. If you are carrying a higher deductible on your current policy, be prepared to possibly pay more on your auto insurance for the lower deductible.

Your liability limits will usually need to be $100,000 per person and $300,000 per accident. This means your insurance company will pay up to the total amount per person injured if you are at fault, and a total amount for the whole accident, regardless of how many people are injured.

Auto insurance liability is an area where you many need to make an adjustment to your current policy. Many people only carry what their state requires for liability auto insurance. However, you should probably always have this higher liability coverage in place, whether you are leasing or not, as you want to sufficiently protect yourself from accidents and lawsuits. If your insurance policy doesn't have enough to cover the damages, the money will, in many cases, come out of your pocket.

Getting an auto lease is a good time to start shopping around and comparing auto insurance quotes. The financing company may offer insurance, but you can usually get a better deal by looking elsewhere. Of course, you should get a new quote from your current insurance company, but because you will have a different vehicle, you will probably get the most savings by insurance comparison shopping. The Internet is a good place to start, and there are a variety of Insurance quote comparison sites that offer rates from many different insurance companies.

Your auto insurance needs change when you have to insure a leased vehicle. By considering this part of the leasing process, you will save money, time, and aggravation. If you start auto insurance shopping when you are in the leasing process, you will get a head start.

Consumers Benefit From Partnership Between Auto Superstore Pioneer

And World's First Automotive eDealer

Circuit City Stores, Inc. (NYSE: CC, KMX) announced today that its CarMax(R) subsidiary has entered into a partnership with leading automotive e-Dealer, carOrder.com(TM), giving new-car buyers greater access to a more diverse selection of vehicle makes, models and styles.

This relationship is a strategic supplement to carOrder.com's eDealer business model.

Consumers Benefit From CarMax/carOrder.com Partnership

As an eDealer, carOrder.com simplifies the process of selling cars online by investing heavily in a national logistics and distribution network which combines the best of online and brick and mortar sales. Consumers can enjoy the ease and savings of shopping online and the ability to test-drive a car at an eDealer location with all sales occurring online.

"carOrder.com's partnership with CarMax enables consumers to get the vehicle they want, with the options they want at the price they want," explains Brian Stafford, president and co-founder, carOrder.com. "This is a joint effort to satisfy the customer's needs, ensure they get exceptional service and receive the vehicle for the lowest possible price.
CarMax's partnership with carOrder.com is a winning combination for consumers across the country," said Austin Ligon, president of CarMax. "In addition to CarMax.com(SM), Web shoppers now have access to our great new cars through another highly credible online buying source carOrder.com."

CarMax New Cars Also Available Through CarMax.com

CarMax offers consumers a wide-ranging assortment of new domestic and import vehicles online at www.carmax.com. Shoppers can browse CarMax's entire 10,000-car, new-and used-car inventory. The online inventory includes a description of each car, the actual price and vehicle location. CarMax new-car franchise markets and brands include:

Atlanta Chrysler, Jeep, Mitsubishi and Plymouth

Chicago/Milwaukee BMW, Chevrolet, Ford, Jeep, Mitsubishi, Nissan and Toyota

Dallas/Ft. Worth Chrysler, Jeep and Plymouth

Greenville, S.C. Nissan

Los Angeles Chrysler, Dodge, Jeep, Mitsubishi and Plymouth

Orlando Chrysler, Jeep and Plymouth

Washington, D.C./Baltimore Mitsubishi, Nissan and Toyota

CarMax Offers Consumers A Unique Car-Buying Experience

CarMax, a subsidiary of Circuit City Stores, Inc., pioneered the auto superstore concept in 1993 and has a consumer offer that is everything the traditional car-buying experience is not. The company offers low, no-haggle prices; a broad selection of new and used vehicles; quality guarantees; and customer-friendly service throughout the buying experience. CarMax operates 38 locations, including 20 new-car franchises and 32 used-car superstores. For more information, access the CarMax web site at www.carmax.com(SM).

About carOrder.com, Inc.

carOrder.com, Inc., the Internet's first and largest automotive eDealer, offers consumers the ability to research, build, price, finance and order new cars via its Web site with delivery direct to customers' homes or offices. As an eDealer, carOrder.com is taking the online automotive industry one step further by allowing customers to buy a car online without ever setting foot in a dealership. carOrder.com is in the process of buying 100 franchises and transforming them into eDealers, distribution and logistics hubs for Internet car sales. carOrder.com offers vehicles at the lowest price possible, guaranteeing the ultimate in convenience, savings and customer care. Based in Austin, Texas, the company is a wholly owned subsidiary of Trilogy Software, Inc.

This release contains forward-looking statements, which are subject to risks and uncertainties, including but not limited to, risks associated with the development of new business concepts and risks associated with year 2000 issues. Additional discussion of factors that would cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the SEC filings for Circuit City Stores, Inc.

No one at the smooth-running and forward-looking Fletcher Jones Toyota dealership in Las Vegas thinks the days of F&I are numbered.

Sharply diverging from a recent trend to rely again on showroom staff to sell extended service contracts and basic financing packages, the Fletcher Jones store is supporting a top-performing F&I department working closely with the sales staffs at its own location and at the new Fletcher's Used Car & Truck outlet nearby.

As the top seller of Toyota extended warranty agreements in 1995 and 1994, manager Jeff Petersen's F&I department upholds a key Fletcher Jones premise:

"We assign our best salesmen to F&I," says Fletcher Jones Toyota general manager Jim Shelton, "because the payback will be consistently top-notch. Ted Jones (owner of the 11 dealerships in the 50-year-old Fletcher Jones group in California and Nevada) prefers strong-selling F&I staffs, unlike many dealers who put their worst salespersons there."

With new-car and truck volume flat for Toyota last year, Petersen and F&I assistant manager Peter Moneo actually raised their extended warranty sales from 2,015 in 1994 to 2,167 in 1995 while holding lease penetration at a 50-55 percent level.

"There's no big secret as to how we keep the penetration numbers on top in extended warranty sales," says Petersen. "It's a team thing, since we find that resistance to an extended contract first can be overcome at the sales desk by mentioning it as an option like a CD player or sunroof.

"We then list for the customer the advantages of an 'extended' when we review the financing or leasing. We make the experience non-confrontational, not like the high-pressure bunker mentality that exists in so many dealerships between sales and F&I.

"And we're applying the same approach to the new Fletcher's used-car outlet, which offers quality pre-owned units from all seven of the Jones dealerships in Vegas."

Shelton, a hands-on general manager who personally gives each of his 150 employees their paychecks every other week for non-salespersons and weekly for the sales staff, believes that downgrading F&I and returning the function to salespersons "threatens to harm CSI ratings and risks violations of disclosure provisions of finance laws."

Petersen advanced to F&I manager at Fletcher Jones Toyota, which retailed 2,121 new cars and trucks and 1,160 used in 1994 to rank No. 253 on the Auto Age 500, after joining the dealership in 1988 and becoming its top salesman a year later. He had been general manager of the northern California Val Strough group of 12 dealerships before Strough retired and sold the group to megadealer Rick Hendrick.

Shelton expects the used-car store, housed with a state-of-the-art collision center in a renovated former Volkswagen dealership, to generate at least 75 vehicle sales a month and add substantially to F&I business at Fletcher Jones because of surging demand for late-model used units.

Keeping ahead of the curve with a used-unit superstore that also boosts F&I sales and penetration has become a priority for many farsighted multi-franchise dealers with the advent of CarMax-type outlets built by independents.

Meshing with the strategy of "CarMaxing" by dealers themselves is development of sub-prime credit resources to help reach out to more late-model used-vehicle customers. Both franchisers and dealers are entering this sideline to bolster F&I volumes.

Among major financing institutions which have established their own sub-prime subsidiaries are Ford Credit and J. D. Byrider Systems, a used-car franchiser whose new division is called CarNow Acceptance.

Ford Credit has assigned veteran senior executive Jerry Heimlicher to head the unnamed affiliate, which will specialize in high-risk buyers, but proceed on a gradual expansion basis this year, pending a national rollout by the end of 1997.

No one at the smooth-running and forward-looking Fletcher Jones Toyota dealership in Las Vegas thinks the days of F&I are numbered.

Sharply diverging from a recent trend to rely again on showroom staff to sell extended service contracts and basic financing packages, the Fletcher Jones store is supporting a top-performing F&I department working closely with the sales staffs at its own location and at the new Fletcher's Used Car & Truck outlet nearby.

As the top seller of Toyota extended warranty agreements in 1995 and 1994, manager Jeff Petersen's F&I department upholds a key Fletcher Jones premise:

"We assign our best salesmen to F&I," says Fletcher Jones Toyota general manager Jim Shelton, "because the payback will be consistently top-notch. Ted Jones (owner of the 11 dealerships in the 50-year-old Fletcher Jones group in California and Nevada) prefers strong-selling F&I staffs, unlike many dealers who put their worst salespersons there."

With new-car and truck volume flat for Toyota last year, Petersen and F&I assistant manager Peter Moneo actually raised their extended warranty sales from 2,015 in 1994 to 2,167 in 1995 while holding lease penetration at a 50-55 percent level.

"There's no big secret as to how we keep the penetration numbers on top in extended warranty sales," says Petersen. "It's a team thing, since we find that resistance to an extended contract first can be overcome at the sales desk by mentioning it as an option like a CD player or sunroof.

"We then list for the customer the advantages of an 'extended' when we review the financing or leasing. We make the experience non-confrontational, not like the high-pressure bunker mentality that exists in so many dealerships between sales and F&I.

"And we're applying the same approach to the new Fletcher's used-car outlet, which offers quality pre-owned units from all seven of the Jones dealerships in Vegas."

Shelton, a hands-on general manager who personally gives each of his 150 employees their paychecks every other week for non-salespersons and weekly for the sales staff, believes that downgrading F&I and returning the function to salespersons "threatens to harm CSI ratings and risks violations of disclosure provisions of finance laws."

Petersen advanced to F&I manager at Fletcher Jones Toyota, which retailed 2,121 new cars and trucks and 1,160 used in 1994 to rank No. 253 on the Auto Age 500, after joining the dealership in 1988 and becoming its top salesman a year later. He had been general manager of the northern California Val Strough group of 12 dealerships before Strough retired and sold the group to megadealer Rick Hendrick.

Shelton expects the used-car store, housed with a state-of-the-art collision center in a renovated former Volkswagen dealership, to generate at least 75 vehicle sales a month and add substantially to F&I business at Fletcher Jones because of surging demand for late-model used units.

Keeping ahead of the curve with a used-unit superstore that also boosts F&I sales and penetration has become a priority for many farsighted multi-franchise dealers with the advent of CarMax-type outlets built by independents.

Meshing with the strategy of "CarMaxing" by dealers themselves is development of sub-prime credit resources to help reach out to more late-model used-vehicle customers. Both franchisers and dealers are entering this sideline to bolster F&I volumes.

Among major financing institutions which have established their own sub-prime subsidiaries are Ford Credit and J. D. Byrider Systems, a used-car franchiser whose new division is called CarNow Acceptance.

Ford Credit has assigned veteran senior executive Jerry Heimlicher to head the unnamed affiliate, which will specialize in high-risk buyers, but proceed on a gradual expansion basis this year, pending a national rollout by the end of 1997.

The wait for a car loan decision will be shortened dramatically when the Internet replaces the fax machine as the main mode of communication between dealerships and lending institutions.

Next to the customer's dithering over which car to buy, the second most time-consuming phase of the transaction for customers and dealership staff alike is getting the loan approved at terms acceptable to the customer.

But the very methods by which F&I managers communicate with lenders are already undergoing fundamental changes. The good news is that loan applications can be approved or declined within a minute or two when they are submitted over the Internet.

According to research by Killen and Associates, up to 40% of all new auto loan originations will be conducted online by 2005.

The bad news is that customers, before they even visit the dealership, can now arrange their own financing over the Internet, thus taking a potentially huge bite out of dealers' F&I revenues.About 5% of our customers arrange their own financing," says Danny Elliott, business manager at Greg James Country Motors, a Rusk, TX, dealership that sells all GM makes except Cadillac. "So we try to sell them extended warranties or whatever else we can. But they're a tough sell because once they've arranged a monthly payment, they generally don't want to increase that payment."

For the other 95% of the dealership's customers, Mr. Elliott is able to obtain loan application decisions in a minute (sometimes less) by using an Internet-based loan application product called CreditConnection.

Developed by Annapolis Junction, MD-based CMSI (Credit Management Solutions, Inc.), CreditConnection completely automates the credit check, credit scoring, and loan application submission processes by linking subscribing dealerships and lending institutions through the Internet.

Says Mr. Elliott, "We can contract the customer while they're still in the showroom rather than have to send them away for a couple of days and maybe have them start shopping other dealerships while we're all waiting for a loan decision."

Says Greg Stewart, finance director at Koons Buick, Pontiac, GMC, VW and Mazda in Marlow Heights, MD. "I gave it a try when a supervisor at a bank we do business with mentioned that if you're on CreditConnection, your loan application goes to the top of the list, as opposed to faxing an application, which then gets queued into line behind all the others the lender has on his desk right then.

"We do about 600 cars a month. I hardly have time to see my wife and kids, let alone wait in line for loan approvals."

The speed of electronic loan processing benefits lenders, too, since a quick turnaround from a lending institution gives F&I managers incentive to use that lender again.

"CreditConnection give me decision history reports that allow me to monitor a lender's performance," says Mr. Elliott. "I can see at a glance what decisions lenders have given me, the date of every decision, and how fast they were in accepting or declining the deal."

Another benefit appreciated by Mr. Stewart is the help CreditConnection provides him in spotting decisions.

"This system helps us make the difficult decisions, the ones that make you wonder if you shouldn't wait for lender approval before you put the customer on contract or not. We used to have to put a customer like that off for a day, but now we can get a decision in minutes.

"The system also lets us know if we need any further documentation or stipulations for the bank. When you have to wait two days for a loan approval and then inform the customer that you need more information, that can be irritating to the customer. It'll show up later in a CSI survey."

Founded in 1987 by Jim DeFrancesco and Scott Freiman, the CreditConnection concept was first developed to serve the needs of Mr. DeFrancesco's own car loan financing company. Today, CreditConnection also supports the marine and RV retailing industries.

Because CMSI has patented its electronic car loan application processing system, CreditConnection is the only Internet-based product of its kind currently available.

CMSI is currently working with 22 lending institutions and more than 500 dealerships in the U.S. and Canada, including a number of Driver's Mart stores and all CarMax stores. Some of the nation's largest lenders are CreditConnection clients, including GMAC, Wachovia, Bank of America, Regions Bank, and Wells Fargo.

Non-prime CreditConnection lenders include AmeriCredit and TranSouth. Institutions dealing in both prime and non-prime loans include Bank One, NationsBank, Suntrust, and WFS Financial.

"As we were working to automate loan application processing for the banks," says CMSI executive VP Scott Freiman,"we thought it would be great to build an electronic connection to car dealers. The problem was coming out with a standard that both dealers and lenders would embrace, so we had to devise a very open system that would be acceptable to multiple clients.