How much coverage do you need?

Liability coverage is mandatory for car owners in 49 states and the District of Columbia, according to the Insurance Information Institute. But the amount of liability car insurance you buy is up to you. "Purchase as much coverage as you can afford," says Tim Dodge, director of research and external communications at the Independent Insurance Agents & Brokers of New York. "This insurance covers you if you're legally responsible for someone else's injuries or damages. Because even seemingly minor accidents can result in costly neck or back injuries or extensive damage to a $30,000 car, it makes sense to buy a lot of liability...

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Choose your car wisely

If you're planning to purchase an auto, think about car insurance before writing a check or signing on the dotted line. Some makes and models of cars will have a greater impact on your car insurance rate, so it's a good idea to check with an insurance agent or website before making a purchase. For instance, "Sports cars will definitely increase your rate, while a minivan is likely to have little impact," says Michelle O'Connor of O'Connor Insurance Associates Inc. in Charlotte, N....

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Find and buy car insurance

When calculating the cost of a car, insurance can be a large chunk of the expense. And the price keeps going up. According to the Department of Labor, the average annual cost of car insurance increased by 5.3 percent nationwide from July 2009 to July 2010. To seek out and secure the best deals on the car insurance you need, follow these tip...

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Finding a sweet deal on classic car insurance

HighlightsClassic cars are better insurance deals because they are lovingly cared for. Some insurers restrict the car's use and want them in locked garages. Don't confuse sweat equity with the actual value of your car. Do you have a classic car? If so, you're in luck. Insurance is cheaper -- and better -- than you may think. Insurance for these babied gems only runs in the low hundreds per year, even from specialty insurers. And some classic car insurers throw in special services, such as inflation protection and trip interruption reimbursements. Why the lower premiums? Because classic cars...

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Do you need an extra car repair policy?

HighlightsMBI is an insurance contract, unlike a manufacturer or dealer warranty. MBI isn't new, but it has gained traction during the recession. Some of these extended service contracts duplicate your warranty coverage. Want to keep costly auto repairs from breaking your budget after your manufacturer's warranty expires? One option may be mechanical breakdown insurance, or MBI, a little-known insurance product that acts like an extended warranty on new and used vehicles but with several advantages, including payment terms, that may make it a good choice for some. Unlike a manufacturer or...

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How to cut car insurance costs

How to cut car insurance costsAre you paying too much for your car insurance? Perhaps it's time to re-evaluate your policy.Here are a number of ways to cut car insurance costs: Raise your deductible. Normally, increasing your deductible -- how much you pay out of pocket before coverage begins -- will lower your premium. Of course, this strategy could backfire if you get into an accident and have to pay thousands upfront. But if you and everyone on your auto insurance policy maintain a good driving record, this is easy savings. Drive less. Save the planet -- and money on insurance -- by carpooling to work. Most insurance companies base rates on annual mileage, so if you reduce yours there's a good chance you'll qualify for a lower rate. If you've recently moved and have a shorter commute,...

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A checklist to save on car insurance

Thanks to the economic downturn, more Americans than ever are looking for ways to reduce their expenses. For many, car insurance is one area that can represent savings, either by changing coverage on an existing policy or switching carriers entirely. Still, in some instances you may want to spend a little more to ensure you have adequate coverage. Here are four changes you may want to make on your car insurance policy based on recent trends that affect auto insurance. Check your annual mileage estimate on your policy. Since insurers rate a big part of your risk on how many miles you drive, tell your car...

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