A car or auto insurance is a contract between you and the insurance company that protects you against financial loss in the case of any mishaps. Whether you buy a new or used car, insurance is an important document that is necessitated by law in most states across the country. It provides coverage for damage or theft to your car, bodily injuries, or property damage to yourself and others. Follow these tips when buying car insurance.

Shop around for the best car insurance quotes
Try to shop around and get quotes from multiple car insurance companies. This will help you find the best price and coverage for your car insurance. You can also use a car insurance calculator online to receive quotes and estimates from various providers. In addition to this, check the financial strength of each insurance company to establish their creditworthiness.

Look for multi-car discounts
If you own multiple cars, you may end up saving money when insuring them all with the same company. To avail of bulk discounts on car insurance, companies generally require that the drivers reside in the same residence and be related by blood or marriage. In lieu of familial ties, joint ownership of the vehicle is required. Moreover, you may be required to pay a higher rate of insurance if one of the drivers is a teenager. However, if their grades are B average or better, or if they rank in the top 20% of their class, you may be eligible for a good student discount, which can help you save anywhere between 1% and 39% on your insurance.

Take a defensive driving course
Insurance providers offer discounts on their car insurance policies for people who complete an approved defensive driving course from an accredited program. However, check with your insurance provider about how much you can save before you commit to a class.

Improve your credit rating
Insurance companies consider your driving record and your credit ratings when determining insurance premiums. Having a higher credit score can help you snag better insurance policies. Your bank or credit card company may offer free credit score access, so check with them before heading to buy or renew your car’s insurance.

Install anti-theft devices
You may be eligible for additional discounts on your insurance premiums if you install anti-theft devices in your car such as car alarms and LoJack. Speak with your insurance company for more insights into which devices can help you reduce your premiums.

Review your coverage
Before making a decision, review your coverage to add or remove certain car insurance features you need. For instance, if your car is old, you may not need collision or comprehensive coverage, car rental coverage, or roadside assistance. Read your policy document carefully and highlight parts you do not understand or require. Talk to your insurance agent about the same to develop a better understanding of the topics and make an informed decision.

Opt for pay-as-you-go insurance
If you are a safe, low-mileage driver, consider pay-as-you-go insurance plans to help you save money. These policies are likely to save money for people who drive less than 10,000 miles per year. They make use of a telematics device that is installed in your vehicle or smartphone app to track your miles and driving behavior. Safe drivers may also be eligible for additional discounts; some of the programs offered by car insurance providers include Drive Safe & Save from State Farm, Snapshot from Progressive, and Drivewise from Allstate.