Every car needs Insurance. There are many different choices when it comes to picking what’s best for you. Each company has different prices and options of coverage. Here are five questions to ask when looking for car insurance.

1. What kind of coverage does this company offer?
   There are three types of insurance that can be offered. Liability insurance is the most important of the three and is required to drive a car in the United States. This coverage takes care of the car involved in an accident caused by you.  Second is Collision insurance. It covers your car in an accident. And third is Comprehensive coverage. This is the same as collision insurance, except that it also covers vandalism, floods, theft, fire and/or severe weather.
2. How big a percentage does the insurance cover?
   Remember, whatever the insurance does not pay, you have to. Your challenge is to find at least 3 competitors and compare the coverage to score the best deal!
3. What kind of add on’s does this company have to offer?
   Whether you choose to add these options or not, it is good to know that they are available. Options can include rental reimbursement, medical payments, and towing and labor coverage. Some companies have this added into the normal packages, but it tends to be minimal. Finding out about what they have included is also important. Most times to get the good extra coverage the buyer must add these on top.
4. Does the insurance company pay for a rental car for you to use while your car is being repaired after an accident?
   If they do, how long do they cover for? And do they notify you when the limit has been reached? Do they cover all cars or are there specifications of the kind you can rent? And is there a mile limit? The question applies to medical payments also.
5. How much will you need to pay every month in order to keep this coverage?
   At the end of the day, most buyers will find that this is the most important question to ask. Although the coverage is everything the customer may want, they simply won’t be able to purchase it, due to the monthly premium. If this is the case the person may want to keep searching or they may want to drop a few of the benefits.

With this information the buyer can compare one company to the next.

After you have chosen a company, call your state insurance department. Verifying that the agent is licensed and the company is legitimate is crucial. You don’t want to get ripped off.

When it comes to obtaining insurance, you are entering into a contract therefore you should be able to ask questions about the rules, regulations and expectations of the company. Feel free to inquire and don’t feel like you are asking too many questions!