Every state has financial responsibility law. That means that you must either have liability insurance or prove that you are financially able to pay for damage that you cause in an accident. One of the best ways to save money is to get several insurance companies to give you a car insurance estimate or quote before purchasing any insurance.
You can get car insurance estimates in several ways. One would be to walk into a car insurance agent’s office and ask for a quote. This is probably the worst way to get car insurance quotes. It is difficult to say, “I will check back with you” when you are looking the agent right in the eyes, but that is what you need to do in order to get the best price on car insurance.
A smarter way to compare prices is to use the phone to ask for several insurance quotes from different companies or agents. They will ask to call you back with the quote. Do not be put off by this, it is standard practice, and while they are running your numbers, you have the chance to call for more quotes. When a company calls back with a quote, you have an excuse to say no, you are waiting on other quotes. After you get three or four quotes, call back the company that offers you the best price and you are saving money on you insurance. Do not agree on prices until all the estimates are back.
The best way is to enter your own data into an insurance search engine online. The website where you enter your information will send it to a minimum of three other agents that will all prepare estimates for auto insurance for you. They will then contact you, either by phone or by e-mail with the quotes. Most people prefer e-mail, as it allows you to review the quotes at your own leisure and you have a paper copy of quotes for reference.
Once you have all the quotes and have reviewed them, you are ready to purchase insurance.
If you can afford to pay the price of the entire policy at once, you will often save three to ten dollars a month in service charges.
If you drive safely and obey the laws of the road, your insurance costs may actually decline as time passes. After three years, all moving violations and accidents disappear, so you become a better risk and pay less.