Most states require that drivers carry auto insurance. This protects both the driver and the vehicle from damages caused by an auto accident. However, most states do allow drivers to choose their own auto insurance company. While this gives you more freedom to choose your payment and amount of insurance coverage, it does make it so you have to research and understand each company and what they are offering.

How reputable is the company?
Larger named insurance companies have been around for a long time and tend to be more reputable. Smaller companies, while they may be cheaper, do not usually have as good of a reputation. Auto insurance company reputation is important in ensuring that you are fully covered. You do not want to get into an auto accident to find that only a small portion of your expenses are covered. You also do not want to be the cause of an auto accident to find that your auto insurance company is not going to pay for any of the costs. Smaller, less reputable companies may also cause you to have lapses in your insurance. At any given moment, 16% of American drivers are uninsured.

How much is your insurance premium?
This is an important factor to consider when shopping for auto insurance. The auto insurance premium is the amount that you will have to pay every month to carry the insurance policy. You will want to be sure that it is affordable. If you are unable to pay the insurance premium, for even one month, you insurance policy can lapse, and leave you unprotected. Insurance premiums usually depend on the type of vehicle, the driver?s record, and special considerations of the vehicle. Average insurance costs for sedans rose 9.6%, or $107, to $1,222 in 2015 from $1,115 in 2014. Keep track of your premium price, so you can easily identify increases to your insurance policy.

How covered are you?
Some states have different levels of coverages. For example, a no fault policy is the most basic level of insurance you can purchase. This no fault protection ensures that you are following the legal rules of insurance protection, but do not cover much in terms of damage. Most people opt for no fault insurance when they have an older vehicle that is not worth very much. Your insurance needs will depend on many factors including location, type and value of vehicle, and your driving record.

However, even with lower valued vehicles, you want to be careful with no fault insurance. If you are injured, your medical costs may not be covered. Every year the lives of approximately 1.25 million people are cut short as a result of a road traffic crash. Between 20 and 50 million more people suffer non fatal injuries, with many incurring a disability as a result of their injury. It might be beneficial to opt for the more expensive insurance policy to ensure that you are protected, in the event that you are involved in an auto accident.

Can you receive any driver discounts?
Driver discounts are a great way to cut the costs of high insurance premiums. Your insurance agency may offer a variety of premium discounts that you are eligible for. A few examples of driver discounts include good driving records, student discounts, and multiple policy holders. Multiple policy holders are those who insure their house, recreational vehicles, and vehicle with the same auto insurance company.

Auto insurance is a part of your driving responsibility. If you want to carry a driver?s license and have the freedom to operate your own vehicle, you also have to carry some type of an insurance policy. Before choosing the right auto insurance company and policy for you, ensure that you select a plan that meets all of your driving needs.