Recommended Car Insurance Coverage Tips

• Make sure the policy covers the cost of replacing another driver's new carPolice officer at the scene of the Jeep and car road accident. image by Dragan Trifunovic from Fotolia.com
  
  Car insurance protects the driver of a car in case of an accident. It is a requirement to receive a driver's license. A driver who gets into a car accident without insurance coverage faces additional penalties, such as license suspension, additional fines and possibly a criminal conviction and jail time. The person who purchases a car insurance policy is paying for car insurance coverage and several factors affect the rate that the insurance company charges for the policy.
  
  

Get Several Quotes

• Buyers should get several quotes, since car insurance is a very competitive market. Many companies' agents will quote prices on car insurance, including both independent agents and agents who work directly at an auto insurer. Asking car insurance agents for a quote on a car insurance policy provides comparison information to make sure the buyer receives a good deal. Agents may advertise a low rate for a policy so the buyer should make sure that they qualify for this rate and that it meets their coverage needs.
  
  

Check Types of Coverage

• Buyers should check specific types of coverage included in the car insurance policy. Damage to property, such as other cars, trucks and buildings, is one section. Harming other drivers, passengers and pedestrians is another type of coverage. A policy may also specify a coverage limit specifically for injury to the driver of the car which the policy covers. The amount of coverage a driver must purchase varies by state. The State of Illinois recommends drivers purchase more than the minimum coverage limit, since an accident may cause more than the $15,000 coverage requirement in Illinois when the driver crashes into a new vehicle.
  
  

Check Policy Options

• Decide whether optional coverage is necessary. Some policies allow separate features such as towing a vehicle several times per year up to a limit of several miles, sending out a service agent to open car locks or providing a rental car while the car the policy covers is in the repair shop. A policy can also cover additional equipment, such as tires or stereo systems, that the driver installs in the car after purchase from the dealership.
  
  

Decide whether to get comprehensive and collision coverage

• Decide whether comprehensive and collision coverage are necessary. According to the State of Michigan, a basic policy may not pay for replacement of a car when it is in an auto accident. These additional policies will pay to repair a car or even replace it if it receives severe damage or is stolen. Since these policies pay out at current car value, the Federal Citizen Information Center recommends that owners of older cars decide whether these options are worth paying.
  
  

Ask about discounts

• Ask the car insurance agent about discounts. Student discounts include a discount for good grades or driving the car at a school several hundred miles away from the student's home. A student may also be eligible for a low-mileage discount. Older drivers may be eligible for discounts, which include the mature driver credit and a defensive driving discount, according to the State of Illinois.