No matter what year, make, or model car you drive, it is an important investment. It doesn't matter if you cruise around in a brand new SUV or a used sedan, your car is an important asset and needs proper insurance coverage.

Purchasing auto insurance can sometimes be confusing and you may find it difficult to understand all of the details contained in the policy. So before signing on the dotted line with any insurance policy, take some time and make sure you understand what you are buying. Don't be afraid to ask your insurance company representative or agent to clarify something or explain why it costs as much as it does.

First, start shopping early. A good rule of thumb is to start shopping 60 to 90 days before needing a new policy.

When you purchase a new insurance policy or renew your current policy, you must make many decisions about what you need to buy and how much you can afford to spend.

You must decide:

• What kind of policy do I want to purchase - the standard or basic policy?
  
  
• How much Personal Injury Protection coverage do I need to cover medical bills and other related expenses if I am in an accident?
  
  
• How much bodily injury coverage do I need if someone sues me because of an accident I caused that injures them or damages their property?
  
  
• How much uninsured/underinsured motorist coverage do I need if I am in an accident caused by someone who has little or no insurance?
  
  
• Do I need to buy collision and comprehensive insurance to cover my car if it is damaged in an accident I cause, or if it is stolen or damaged in some other way?
  
  
• How much money can I afford to pay out of my own pocket before the insurance company begins paying, if I have an insurance claim?
  
  
• Do I want to be able to sue another driver for my pain and suffering when the accident was not my fault and I was injured? Am I willing to limit my ability to sue for only the most serious injuries?
  
  

Once you know the types and amounts of coverages you need, gather all the necessary information to help you and the insurance agent or company develop the most accurate policy proposal. You should have the following information:

• What is(are) the year, make, model, and body-style and vehicle identification number of the car(s) to be insured?
  
  
• Who will be driving the car(s)? What is(are) the driver(s) birth dates, driver license numbers and motor vehicle records?
  
  
• How many miles is the car normally driven during a one-year period?
  
  
• What will the car be used for? To drive to and from work? Strictly for pleasure or for business?
  
  
• A copy of the Declaration Page of the current auto insurance policy.
  
  

Then shop around. Ask friends, neighbors or relatives which companies they like or don't like, and why. Obtain quotes from several companies and make sure the quotes you obtain are for the same types and amounts of coverage, so you can compare prices on a consistent basis. Also, ask each insurer if they offer discounts to members of any of the organizations to which you belong.

Comparing price is important, but it is also important to compare how a company provides claim service and levels of coverage before purchasing or renewing an auto insurance policy. When you get several attractive quotes, ask each company about its customer service and claims procedures. Does it have its own staff, or does it use outside adjusters? Does it have personnel in New Jersey or will you be doing business long distance? How much assistance, if any, will a local agent provide.

Also, check the company's financial stability, complaint record, and its record of paying dividends over the past several years.

In the end, choose the policy and company that best suits your needs and budget.

See Also:
Standard Policy
Basic Policy
Tier Rating
Understanding AICRA
Graduated Drivers Licensing
Tips
Facts