The first decision is normally how much of a deductible you intend to have; this can range from as low as zero all the way up to a thousand dollars. The deductible is the amount of money that you will be responsible for when filing a claim before the insurance will pay anything. In other words if five thousand dollars worth of damage is done and you have a thousand dollar deductible, you will pay the first thousand dollars of the damages. The lower your deductible the higher the insurance will cost.
While most people try to carry about a hundred to five-hundred dollar deductible, it is possible to carry a higher one. This decision is sometimes made based on the year and make of the vehicle. For instance if you are driving a car that is only worth a thousand dollars it does not make since to have a two hundred and fifty dollar deductible, at the same time if you are driving a car worth thirty thousand dollars it does not make sense to have a three thousand dollar deductible.
Next you need to think about what is called the comp and collision. This is that amount the insurance will pay when things like a cracked windshield occur, for example you catch a rock from a truck while driving; if you have paid for comp and collision, you sometimes do not even need to pay a deductible to get it fixed. This is something that adds to the cost of the insurance and may never be used.
Finally is bodily injury, this is the amount that the insurance will cover if someone gets hurt in an accident that you cause. It will also cover you in an accident that was your fault or if you are injured in an accident caused by someone else that does not have insurance.
Armed with this information you are now ready for the most fun part of finding the cheapest auto insurance, comparing the prices of multiple companies.
This may start out sounding like an impossible task, and you may dread doing it, but once you start to look at what each company offers, finding the cheapest auto insurance will get easier. With the growing internet it is even possible to look and compare and never even talk to a sales person until it is time to buy.
Can you imagine comparing prices with no one pressuring you to make a decision? This is the way to go and being armed with all of the necessary information can even make it enjoyable, because everyone enjoys saving money and you can too; when you look for the cheapest auto insurance.