INSURANCE >> AUTO

What Is Auto Insurance?

An auto insurance policy is a contract between you and an insurance company. You pay a premium, and in exchange, the insurance company promises to pay for specific car-related financial losses during the term of the policy.

Why do I need it?/ What coverage should I have? / What to do if I have an accident?
In some states, to drive (get license plates) you must carry:

• Liability coverage to pay for losses you cause others, or
• No-fault coverage to pay you and your passengers for medical and related expenses caused by injuries from a car accident, regardless of fault, or
• Both of the above coverage's.

Even in states where coverage isn't’t required, drivers must, by law, be able to pay for losses they may cause others. Having insurance is the simplest way for most people to comply. Coverage for vehicle damage usually is necessary to finance a car.

Without insurance, you risk paying for the full cost of:

• Any harm you cause others, or:
• Repairing or replacing your car if it’s damaged or stolen.

Here are some tips for selecting auto insurance:

Check with more than one insurance company - Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers. (State insurance department phone numbers and Web sites can be found here.)

You buy insurance to protect you financially and provide peace of mind. It's important to pick a company that is financially stable. Check the financial health of insurance companies with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com) and consult consumer magazines.

Get a quote from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet.

Don't shop price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions. You can use the checklist on the back of this brochure to help you compare quotes from insurers and on the same coverage.

Compare insurance costs before you purchase a car - Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).

Ask for higher deductibles on your policy - The amount that you are willing to pay out of your own pocket in the event of an accident can reduce your insurance premium.

Check out discounts that may be available from the insurance company you are considering - many insurance companies offer different discount programs that can save you money. Make sure you check out what they offer compared to other companies you are considering.

Consider dropping or reducing coverage on older automobiles - Consider dropping collision and/or comprehensive coverage's on older cars.

Changing Insurance Companies

Changing automobile insurers doesn't have to be a difficult or time consuming. In fact, as long as you follow the insurance rules of the road, you might get a better deal with little hassle. Approach it as if you were preparing for a driving vacation. You need to plot your policy route before you head out. Your current coverage's expiration date is a natural starting point.

Most policies generally are issued for six months or a year. Change insurers before the term ends and you could face penalties. Even if you don't have to pay a penalty, when you cancel in the middle of a policy term you'll have to wait on any refund of already paid premiums. And keep in mind that your old insurer will make the calculations on exactly when coverage ceased, meaning you could end up with less of a refund than you expected.

At My Twin Cities Home we will search a variety of companies to try to get you the best policies for your needs. We work with lots of different providers so you have a great selection of what is available in the marketplace.