Car Insurance Tips

If your classic auto has sentimental value, it may be worth it for this additional coverage, but try to weigh the extra cost against the actual potential benefit.

Car insurance can be a tough thing to compare, as most shoppers are not familiar with all the features of a typical car insurance policy.  As always there is some urban legend, and just plain wrong advice floating about the internet about car insurance.  Let's first take a look at what goes into a comprehensive insurance policy, then we can start searching for the best deal online.

Let's start off with an easy one, since we need to warm up the old noggin before we tackle some of the more complex parts of your car insurance policy.  The premium is the amount you pay for your car insurance policy.  (I told you we were going to start off easy)  But, there is a catch here to watch out for!  If you pay monthly, you may be paying more for your car insurance.  Most companies will offer a discount for yearly payments, or charge a paperwork fee for monthly billing.  No matter what you call it, you end up paying more if you pay monthly.

 Now depending on your economic circumstances, or your vehicle being insured, you may not be able to pay an entire year up front.  In this case, ask if you can get a discount for automatic monthly withdrawls from your bank account.  If you can't live with this option, then all you can do is live with the extra fee (if charged) and make sure you figure in this extra expense when comparing policies.

Do you drive your vehicle less than 7,500 miles per year? If so, make sure your policy reflects that. Think about car-pooling or using public transit for your commute. Not only could it save you some money on your car insurance premium, but you'll be helping the environment too.

If your child is listed as a driver and is a student, you might be entitled to a student discount, especially if your child receives good grades or is enrolled in a school driver's education program. Keep in mind that you will probably save money by listing an adult as the primary driver, and your child as a secondary or occasional driver. Also, if your child is a college student living over 100 miles from home and the car stays at your home, you could save up to 15%.