For car owners and drivers looking to ship a car, it is of primary importance to have appropriate car insurance. Most of the times this means a car insurance policy or an attached rider in addition to the compulsory insurance prescribed by the government. But how can we choose suitable car insurance? What should we know of its types? And what aspects should we pay attention to? There are some basic steps that can help people determine what kind of car insurance they need to buy.

Finding the best coverage-type and level at the lowest price is not always easy. Due to the increase of the number of cars the competition in the world of auto insurance is becoming stronger and stronger. When people buy car insurance, they want adequate coverage as they want to be protected in case any accident happens. On the other hand, though, they do not want to pay for the coverage more than they have to. But what is the solution for such a complicated issue?

First of all, it is essential to take time and shop around before arriving at a decision. This may help people not only in saving money (by finding a cheap insurance), but also in getting a more extensive coverage. But how can this comparison be done? People should make use of the many free online tools that are useful helpers of people who are about to choose a suitable car insurance. First of all, people may get free auto insurance quotes from various insurance companies and compare different car insurance products. What they have to do is to fill in a simple application form, and they will get the free quotes in a few minutes. Another useful and free online service is the comparison tool available at many insurance-related websites. With these it is plain as pikestaff to compare various car insurance offers based on their monthly/yearly costs, coverage-levels, discounts or bonuses.

Second, it may happen that one already has car insurance but he/she finds it too expensive. Some companies charge extra fees if the insured has a bad credit rating or has an accident in his/her profile list. But keep in mind that this is not valid for all of the companies! So people are advised to make a list of the different insurance providers, the amounts they charge for a typical basic coverage to have an idea about the typical insurance-price level. After shopping around they are very likely to find the most appropriate car insurance. In order to do insurance-comparison applicants might need their current insurance scheme, their driver license number and their vehicle registration. It is important for people to take note of the following:

· Yearly and monthly costs for different coverage-types but for the same coverage-limits

· A phone number where they can ask questions

· The insurance provider’s payment policy (payment dates, late payment fees)

· Discounts or bonuses

· The insurance provider’s official rating and its consumer-complaint ratio

Those who could not get all the necessary information should call those insurance companies that seem to have an appropriate offer, and ask all the details that may be important. Being well-informed is one of the most essential things in order to choose suitable car insurance. If one gets a price-offer by phone it is important to confirm it, by asking the company to fax or send the quote in e-mail.

Third, people should decide how much coverage they need. They may start by figuring out what coverage-level is obligatory and what level they need in addition. However do not be exaggerated! Think about those scenarios and cases one really needs a protection for, but do not pay high fees for improbable events! Keep in mind that insurance companies use mathematical and actuarial tables in order to calculate how much they should charge in order for their activities to be profitable. They know perfectly well the probability of almost any occurrence, but they charge people more in order to ensure not only their payoff abilities in case claims are made but also to ensure their profits.

The above-mentioned facts are noted to suggest that people should not purchase a too extensive coverage as this could cost them too much. People should let their financial situation guide them. But it is a golden rule not to buy excess coverage if you do not have the necessary finances to fund it. Besides their financial situation, people should take into consideration their driving habits and record. Obviously those who drive a lot and are not so careful or are always in a hurry and thus drive fast should consider a more comprehensive coverage.

Fourth, people are advised to look for discounts, for instance for their good driving-records, credit histories, safety-equipments, or for professional affiliation bonuses. And the most important step of all is to choose the right insurance-provider. This is a complex decision, so do not hurry by selecting the cheapest offer. People should think about the company’s customer service and the quality of their overall services. Just think about the fact that you need to be covered for a claim, and they are late in providing help for you. So do not forget about the reliability of the insurance company! People may ask their friends or relatives or read reliable online customer reviews to be sure they have chosen a trustworthy insurance company.

People are also recommended to review their policies before they sign it! They should read the fine print and verify the whole contract and the coverage level that is provided. An important clause people should have in the contract is retaining their rights to sue. Finally, people should not forget to cancel their old car insurance policies if they had one and get proof of their new policies if the government requires such a thing!

All in all, after having taken into consideration their own driving records people should review their existing insurance policy and decide whether it is worth to switch to another plan. If people’s current coverage-level is appropriate, they are still recommended to shop around and check whether there are cheaper offers that provide the same coverage.