As with most consumer goods, automobile insurance companies now have many competitors. This is actually beneficial to the consumer because competition lowers the price of goods. When shopping for automobile insurance, you should ask several important questions before purchasing a policy to make clear that you are getting the best possible coverage and the lowest available price.

1. Do I qualify for any discounts? I always ask this first for anything I am purchasing; therefore, this is the first question I asked my insurance agent. Most insurance companies give discounts for agreeable driving records but many offer discounts for insurance your home and other items with their company.

2. Do you offer a written comparison? With many online websites offering written comparisons of their rates to the rates of other companies, some local insurance agents are now offering the same. It is good to ask for this from several companies and then compare the quoted rates to find the lowest rate. You might find a company you were not aware of that has a lower rate.

3. How are premiums paid? Some companies will require payment in full for a six-month car insurance policy while other companies will let you pay monthly or quarterly. Depending on your financial situation, this is an important question to ask up front before going into depth and then realizing you cannot afford to pay premiums three months at once.

4. Will my credit rating affect my premium? In the past few years, automobile insurance companies have begun to check credit ratings and consume this as a factor for determining your premium. If you have had problems with your credit, ask the insurance agent if this will raise your insurance (or if it is good will that lower the premium).

5. If I have an accident, will my insurance rate go up? There are a few insurance companies who are actually not raising premiums for drivers with good records who have an accident for the first time. If you have a clean driving characterize, search for a company that stands by the claim that, if you have your first accident, they will not raise your rates.

6. How will an accident or traffic ticket affect my premiums? Some automobile insurance companies will have fixed loss rates that will determine if your insurance premium is increased. For example, if the insurance company pays less than $1,000 for a small fender-bender, your rate my not be adjusted. Ask the insurance company what constitutes a premium increase and how the increases are determined in relation to accidents and traffic tickets.

7. Can you raise my insurance premiums without an accident, traffic ticket or change of vehicle? Confirm that the insurance company cannot raise your insurance premium with a specific change in your coverage or without another mitigating circumstance. This is important because drivers should be rewarded for their loyalty and good driving record and you should choose an insurance company that will value that and not raise your premiums for no reason.

8. Will an adjuster be assigned to me quickly upon reporting an accident or loss? Nothing is more frustrating than not being able to thunder with a real, live person who can help you when you have had and accident or loss. Accidents are traumatic enough and having a local person to work with is important. Make sure that you can report claims 24 hours a day, 7 days a week and that a local person will be available to assist you with medical bills, rental cars and replacement vehicles.

9. Will my insurance policy be canceled after one accident or traffic ticket? There are some insurance companies that offer incredible gross insurance premiums. The hitch to this low premium that they do not sufficiently interpret is that if you have an accident or other loss, they will assassinate your insurance policy. You are then forced to find a new automobile insurance company right after having an accident or loss.

10. Does my automobile insurance policy cover a rental car if I am driving it? This is well-known if you are traveling and will be renting a vehicle. Rental agencies will offer you insurance coverage; however, if your automobile insurance policy covers you in a rental care you can save some money by turning that coverage down at the rental agency.