An important consideration for motorists is to protect their financial investment in their vehicle with appropriate car insurance. With car insurance being such a highly competitive market, consumers should not have any trouble finding a variety of companies competing for their business.

Most states have mandated liability or no-fault insurance, however it is also necessary for drivers to protect their asset in case they cause an accident. A study conducted by the Insurance Research Council in 2006 found that in 2004 15% of U.S. drivers were uninsured, this was up from 13% in 1999.

Consumers are advised that it’s in their best interest to re-evaluate their car insurance coverage each year. However many people don’t, with a 2005 NAIC consumer study finding that 20-35% of drivers have not reviewed or updated their car insurance in the past year. Alarmingly the study also revealed that 20% of young single drivers would consider allowing their coverage to lapse in order to save money.

Your insurance needs are constantly changing, especially when you reach major events. Major events can include turning 25, getting married, retiring, having a family, buying a new car and improving your credit rating. All these events affect the kind of insurance you need and how much you need.

There are a number of other things you should consider to ensure you have appropriate cover at the cheapest price.

- If the vehicle is not going to be driven, you should consider lowering your liability coverage to the state mandated minimum and excluding collision coverage from your policy. You may still want to keep comprehensive cover in case the car is stolen or damaged while in storage.

- Young families who are thinking about purchasing a bigger car should consider how the new vehicle will effect their insurance premiums. If you are likely to be car pooling or driving other people’s children around you should consider raising your liability coverage.

- For families with teenage drivers, car insurance can be quite costly. Some insurers offer discounts for teens that complete a driver safety course or maintain a B average or better in school. Your insurer may also allow you to add an “accident forgiveness” clause to your policy that promises your rates will not raise if your teen is involved in one minor accident. To keep insurance rates down you could consider raising the deductible on your policy and consider having your teen drive the family’s oldest, cheapest car.

- If you’re over 50, you may be eligible for reduced rates as older drivers are considered as more cautious than younger drivers. Some insurers may also offer a driver’s refresher course to help you qualify for a discount.

There are a number of types of insurance coverage you should consider when purchasing an insurance policy:

- Most states require that you hold a minimum liability insurance. This insurance covers medical expenses and damage caused to another person’s property if the accident is your fault.

- Some states require that you hold ‘no fault’ car insurance. This insurance covers medical expenses, rehabilitation, funeral expenses, lost wages and in-home assistance to the driver of the vehicle and any passengers, regardless of who caused the accident.

- Consider whether you would like to be covered for uninsured or underinsured motorist protection. This would cover you and your passengers in the event that you are in an accident caused by an uninsured or underinsured driver.

- Consider what other kind of protection you need, comprehensive insurance also covers vehicle damage caused by fire, theft, wind, hail and a run-in with the local wildlife.

- Collision insurance is another option. It covers the cost of repairs or the cash value of the vehicle, if it is damaged or totaled in an accident. Most banks require collision coverage be held for a financed vehicle until you have paid of the loan.

To begin looking for an insurance quote that suits your needs a comparison service is a great place to start.
Fill in this form here and you’ll get over 12 quotes from insurance companies within 10 minutes which should easily save you time and money. Don’t delay, review your insurance policy today.