The car insurance market can easily overwhelm you with its forest of companies and diversity of policies. The key is to know your needs, compare available options, and settle for the best-suited insurance coverage. You can also make use of available discounts to buy need-specific policies at affordable prices.

Here are the 4 essential tips to keep in mind when shopping for auto insurance:

1. Know When You Can Avail Safe Driver and Good Student Discounts

Safe driver and good student discounts are available for such individuals who have no citations, accidents, or moving violations. They are therefore rewarded for their willingness to obey traffic laws. The same is true for the good student discount, which is available only for students who get higher than average grades.

2. Follow State Mandated Road Laws

All the states have made it mandatory for drivers to carry a minimum amount of insurance on every vehicle owned. While the state laws may differ in terms of the amount of insurance coverage to be carried, all of them have similar penalties for such drivers as are caught without sufficient proof of insurance. To know the minimum amount of insurance for your state, contact your insurance agent.

3. Understand Different Types of Coverage Available

There are mainly three types of coverage, namely, comprehensive, collision, and PL/PD (personal liability and property damage).

Comprehensive coverage will take care of contingencies like theft, weather damage, accident and collision damage, vandalism, and personal injury. Collision insurance will cover only such damage as is caused by accident. PL/PD coverage will vary from state to state and is generally set to such limits as would ensure adequate insurance.

4. Know When You Need Comprehensive Coverage

In most cases, comprehensive coverage is required only when your car has a loan or other type of lien attached to it. Once your loan gets paid off, you may be able to drop your coverage down to collision or PL/PD, depending on what you prefer. Comprehensive coverage is one of the more expensive policies because the risk of loss is much higher.

These tips will go a long way in saving you from unwanted premium costs and the shocks of under covered policies, enabling you to make wiser decisions while buying auto insurance. If you have more questions about the car insurance policies or are looking to purchase one, contact Weaver & Associates today!