You have purchased your dream car or in the process of getting it.  Now it is time to do some research about auto insurance.  Even though auto insurance premiums have decreased during 2007, it is still an important part of a family’s budget.  Below is a chart from Insurance.com research which shows 10 most expensive and 10 least expensive states for auto insurance premium:

5 Steps which will save you on your auto insurance shopping: 

1) Starting; Research & Checklist

Create a checklist of your needs.  This checklist may vary depending on your needs.  After creating your check list and studying it, you need to get as many quotes as possible.  You will be surprised with the price difference between very similar auto insurance companies. 

2) Amount of Coverage You Really Need

To find the right auto insurance, you have to figure out the amount of coverage you need. This varies from state to state. First of all, find out what coverage is required in your state. Make a list of the different types of coverages and decide your limits.

How much auto insurance should you buy beyond your state’s minimum coverage?

Our recommendation is if you have a lot of assets you should get enough liability coverage to protect them. For instance, if you purchase $50,000 of bodily injury liability coverage but have $100,000 in assets, attorneys could go after your treasures in the event of an accident in which you’re at fault and the other party’s medical bills exceed $50,000.

General recommendations for liability limits are;

•  $50,000 bodily injury liability for one person injured in an accident,
• $100,000 for everybody injured in an accident,
• $25,000 property damage liability

Many people buy more coverage than they need.  You should decide your coverage amount after carefully analyzing your financial situation. If you have no assets, don’t buy excess coverage.

Another issue to consider is that the limits of any uninsured and/or underinsured motorist coverage that you purchase cannot exceed the limits of your liability coverage. Such coverage, he said, can be valuable, as it will cover lost income if you’re out of work for several months after being injured in a major accident.

3) Shop for Competitive Quotes

You have done your research, decided the amount of coverage you really need and it is time to shop for competitive insurance rates.  We have created a detailed page which has a comparison of auto insurance websites.  Take your time, visit all of these websites, and get your quotes.  These are 100% free services chosen by KIRTOK Reviews experts.  You might lose 30 to 60 minutes of your life, but you will definitely save $$$ by visiting each of these sites and getting auto insurance quotes from all of them.

4) Look for Auto Insurance Discounts

There are many ways to get a nice discount on your next auto insurance.  Some of these are;

Defensive Driving Classes
Usually, you will get a 10% discount on your auto insurance premiums.

Good-Student Discounts
If you are a student with a GPA of 3.0 or higher, you can be eligible for discounts of as much as 25%. In some cases, young male drivers may benefit from this more, since their premiums are typically higher.

Combination Discounts
You can often get 10% to 20% discounts from your premiums if you insure both your home and your car with the same company, or by insuring more than one car with the same company.

Retirement Discounts
Be sure to let your insurer know when you retire — particularly if you retire at a relatively young age. Since you’re likely to be driving less once you’re working days are over, this can often earn you a break on premiums.

Association & Group Discounts
Discounts may be available for affiliation with all sorts of associations — your alma matter, a military group, a professional organization, etc. If you work for a large employer, that could earn you a discount as well.

College-Kids-Who-Are-Far-Away Discounts
If at least 100 miles separate your kid from your car, you could save up to 40%.

Safety Discounts
This varies by state. In some states, including New York and Florida, drivers must be rewarded for having certain safety features on their car, such as antilock brakes, airbags and automatic seat belts. Certain antitheft devices could be eligible for a discount as well.

Loyalty Discounts
Stick with the same company for more than one year, and you could earn a break of 10% or more on your premiums.

5) Review the Insurance Policy Before Signing

So, you’ve done your research, and decided on the auto insurance company. Before you sign the policy read it very carefully. In addition to verifying that it contains the coverage you want, there are two clauses that you should look for in the contract:

Retain your right to sue: “Find out if you are giving up your right to go to court and will be forced into arbitration if there is a disagreement [between you and the insurance company],” one expert advised. “You’re much better off if you don’t give up this right…. It makes it easier for [insurers] to take advantage of you.” If you find a clause to this effect, all isn’t necessarily lost. “At least in theory, a contract is a mutual agreement, so you should be able to cross out that line in the policy,” he said. If the company won’t agree to the policy sans clause, then you should probably take your business elsewhere.
Avoid aftermarket parts requirements: If an insurance company has written in the policy that “new factory,” “like kind and quality” or “aftermarket parts” may be used for body shop repairs, go to another company, one expert advised. If you own a relatively new car that you plan to keep for a while, you will probably be much happier if you spend a little more time researching companies on the front end rather than try to fight the company when you have a claim.