7 Steps to Find and Buy Car Insurance

Choose Your Car Wisely If you're planning to purchase an auto, think about car insurance before writing a check or signing on the dotted line. Some makes and models of cars will have a greater impact on your car insurance rate, so it's a good idea to check with an insurance agent or website before making a purchase.For instance, "Sports cars will definitely increase your rate, while a minivan is likely to have little impact," says Michelle O'Connor of O'Connor Insurance Associates Inc. in Charlotte, N.C.

How Much Coverage Do You Need? Liability coverage is mandatory for car owners in 49 states and the District of Columbia, according to the Insurance Information Institute. But the amount of liability car insurance you buy is up to you."Purchase as much coverage as you can afford," says Tim Dodge, director of research and external communications at the Independent Insurance Agents & Brokers of New York. "This insurance covers you if you're legally responsible for someone else's injuries or damages. Because even seemingly minor accidents can result in costly neck or back injuries or extensive damage to a $30,000 car, it makes sense to buy a lot of liability insurance."When you purchase only the minimum amount required by your state, your assets could be at risk if you are responsible for an accident."Say you hit a car that is driven by a surgeon, and his hand is broken," O'Connor says. "Your limit to cover his injuries will not even start to provide enough money. The doctor's insurance company will come to you looking for additional money. And, depending on your state law, your 401(k) and more would be in jeopardy. Your auto limit should minimally be enough to cover your net worth."

Shop Around

With so many car insurance companies available, you'll find a better rate by comparing several different ones. The Internet makes it easier than ever to compare car insurance rates without ever leaving home or picking up the phone.

Start with sites like NetQuote.com and InsureMe.com, where you can search for various criteria and receive customized quotes from various companies.

"Different companies' quotes for the same service often can be wildly different," says Paul Ford, president of Bankrate Insurance. "The only way for you to make sure you're getting the best deal for your money is to shop around. Sites like NetQuote allow you to get access to the entire marketplace."

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