As you begin shopping for your car and setting your budget, don't forget to check out insurance prices for that car first. Insurance can be a major factor in your monthly payments for your car. Engine types, driving history, number of seats, etc. can all make a difference. Get a quote on the car you want through NetQuote.com and they will scour the web for the best rates. After you have checked out the cars you want to buy, print out the insurance quotes and bring them to the dealer with you when you begin bargaining for your car.

Bonus:  Don't forget to bring your credit report, pre-approved auto loan rates and competing car quotes with you to the dealer as well. This will help you with your bargaining. Refere to our article on What To Bring To The Car Dealer.

First Time Insurers. Driving without auto insurance is illegal, so make sure this is a priority when buying your car. If you don't have insurance or have never been insured, it's best to talk to an insurance company first and see what your options are and how it works for first timers. AIG Direct and 21st Century Insurance are both good companies to submit a form through to talk to an agent. They will be more than happy to call and talk with you about your options.

Your Driving Record. Get a copy of your driving insurance record before talking to insurance companies. They will want to know what kind of driver you are. Make sure you are honest because they will eventually find out if you have a lot of tickets or even worse a DUI. Just like your credit report, your driving record can have many errors which can affect your rates. Check up on it today and fix any errors that you think are on there. If you have had a ticket, go to traffic school and get rid of a point or two off of your license.

Insurance Companies

• AIG Direct. This is one of the largest insurance companies in the world with renowned customer service and competitive rates. This is one company you can count on for the best coverage and peace of mind that you are being taken care. of. Click here to get started on rates and get in touch with an agent. 

• NetQuote.com gives you a free instant rate comparison against all kinds of auto insurance companies. This comparison is a great tool for car insurance, so you know who you have the best chance of getting the best rates from. NetQuote.com has competitive rates themselves, but they aren't afraid to show you who is lower. This company has been around forever and there is a reason for it.....they are great. Click here to get started on rates and get in touch with an agent.

Extended Warranties. Extended Warranty is not insurance, but it is very similar and should be highly considered. Insurance covers you for things that happen to your car in accidents or break-ins. But, what about when your car breaks down or needs repairs? That gets really expensive. If you have insurance and warranty, you are untouchable. Head To SmartAutoWarranty.com to get a fast inquiry.

Bad Credit Increases Your Insurance Rates. Most Insurance companies will do a credit check on you before giving you insurance. Just like a loan, insurance needs to be paid every month. People with bad credit are more likely to not pay for their insurance payments and are notorious for submitting claims for accidents, stolen vehicles, etc. Refer to our article on Credit Repair Secrets if you need help. Get All 3 FICO Scores and Credit Reports Now!

Bad Grades. Are you still in school? Did you know that having bad grades increases your rates? Submit the insurance company with your recent report card with a GPA of above a 3.0 GPA and get a major discount. Get paid for grades!

“Diminished Value” Compensation. Insurance prices are correlated to the value of your car. If something happens to your car that significantly lowers the value of the car such as a bad wreck, you can be eligible for compensation. What does this mean? The Insurance company will lower your rates to allow for the depreciated value of your recently wrecked and then repaired car.

Avoid Insurance Scams. Do not get auto insurance through companies you have never heard of or have a bad reputation. The companies you hear on the radio or see advertisng on the internet with "pop-up" ads are most often not legitimate. They can pull tricks like give you a good rate your first month and then double the price the next month. The government can't help you if you don't read the fine print of a contract. Be Careful and Use NetQuotes.com or AIG Direct.com. Both of these companies are A+ rated. Always use A rated companies or better.

Types of Insurance Coverage. When buying Insurance, rates are not everything. A reliable company that provides great coverage is essential. You may get a good rate and when you finally get in a fender bender, you won't get covered. That kind of mistake can cost you $5,000.  You want as much coverage as you can afford at the best rates. Make sure you hold onto your contract once you get it, so you know exactly what you will get if something happens.

Bonus: When you finance or lease a car, the bank or leasing company will want to double check with your insurance company on the kind of coverage you chose. If you signed yourself a bad insurance deal with a low rate and low coverage, they will make you change your plan and send you the bill for the fix. Don't fall for this one. It's your car and your life, so there's no need to be cheap.

Common Types Of Car Insuracne Coverage:

• Bodily Injury and Liability Insurance. If you cause bodily injury to someone in a car crash, this is the insurance that pays for their damages your defense costs.  This policy will protect you for a certain amount per person in the accident as well as a cap per accident. The coverage is noted as a "split limit". For example, your policy might say $60,000 for a driver or passenger's bodily injury and up to $120,000 for bodily injuries in total. You should ge as much coverage as you need to protect your assets. If you make a modest income, a $50,000/100,000 split might work. If you have a house and make $100,000 a year, you probably want to go for something like a $120,000/320,000 split. If you are very wealthy, insurance companies will offer you umbrella deals that can protect you for millions, getting cheaper with each million more you insure.
  

• Collision Insurance. Collision coverage pays for the damage to your vehicle caused by things like fender benders and fixed objects like trees, signs, buildings, etc. This coverage isused when the accident is your fault. Avoid these as they cause your rates to go up.
  

• Comprehensive Coverage Insurance. Comprehensive coverage covers fires, theft, tornados, floods, vandalism, rock slides, hurricanes, deer plowing, etc. This covers things out of your control. 

• Car Rental. Just like it sounds. The insurance company will pay certain per diems for car rentals when your car is out of commission.
  

• Full Glass.This should be included in your insurance. Most states it is illegal to drive with a damaged windshield, so there is no deductible. If it is not included in your deal already, bargain it in.
  

• Medical Coverage. This will cover medical bills for you and the people in your car no matter who was at fault.
  

• No-Fault, Personal Injury Protection. This can cover costs like work loss, physical therapy, funerals, and other major expenses incurred by you, your family, passengers in your vehicle, and pedestrians injured in an accident by your car. It is knows as PIP most often.
  

• Liability Coverage.This protects you if someone makes a claim against you for something you damaged with your car other than another vehicle. Hey, it happens to all of us.
  

• Towing.The insurance company will pay if you need to be towed. However, they usually will only pay around $50-60, so don't let a private tow truck company tow you for 2 hours to 'their' repair shop. Get a AAA account and have them pick you up. It's free!
  

• Underinsured or Uninsured Motorist. Especially important in California where this happens frequently. This will insure you if you get in an accident with someone who has no insurance. Not a fun situation to deal with, so make sure you are protected.