Pitfalls to Look for When Making Car Insurance Comparisons

Before you even think about making auto insurance comparisons, you need to check out what your particular state's requirements are when it comes to liability coverage. The fact is: You must be covered by liability insurance if you live in almost all (48) out of the 50 states of America, but the amount of coverage required differs from state to state. Liability insurance is (as its name suggests) the amount for which you are held liable if you are involved in an accident, and is exhibited as follows:

• $30/$20/$60

The $30 amount relates to bodily injury per person, the $20 to damage to property and the $60 to injury to persons overall per accident; of course, to determine your minimum level of liability coverage required, you'll want to add three zeros to each of those numbers. The liability insurance minimum is the amount of insurance coverage which your state determines you must legally have in order to drive a car there.

Meet your minimum liability coverage requirement by requesting a free quote here >>

Ensure minimum liability auto insurance coverage is enough

You can opt to take out the "mandatory minimum," and when you look for car insurance comparison quotes on this basis you can be ensured that you're comparing the cheapest plans on the market. However, be aware that this level of insurance coverage may not be enough for your needs. Over the last few years the NAIC has seen a drop in the overall rates of insurance premiums (1.7%), so getting more extensive coverage for your car need not cost you a pound of flesh!

Where you live affects insurance premiums

When making auto insurance comparisons in order to get quotes it is worth bearing in mind the results of an NAIC survey which found that those living in highly urban areas have the highest premiums, as well as people living in areas with the highest incomes. District of Columbia has the highest premiums (at $1,164 a year), whereas drivers in Maine are far luckier with premiums of only $634 ( as of 2006). Whichever state you live in, you can be sure that you're finding the best possible plan; simply request a free quote right here to get started.