August 20, 2011

State Laws To Know Before Auto Insurance Quote Comparison

Before buying car insurance, it's helpful to know a few state auto insurance laws and how they can affect the cost of a policy. State insurance laws can have a huge effect on how car insurance companies operate and how claims are submitted and managed, and when a driver is using auto insurance quote comparison websites to check the cost of a policy, it's vital to know auto insurance requirements and other aspects of state law and how they can cause quotes to change.

One of the most important auto insurance laws to know before comparing quotes is a state's minimum required amount of car insurance. Many auto insurance quote comparison websites will have this information listed, or in some cases, a website may automatically prevent a driver from selecting less than his or her state's minimum requirements when comparing quotes. Drivers should know their state's insurance requirements regardless, because states sometimes require different types and amounts of coverage. In some cases, state requirements are high, which leads to higher-than-average auto insurance quotes for residents.

Tort law also varies from state to state. Some states have a no-fault system of insurance, which means that after an accident, a driver's insurance pays for damages to his or her vehicle, regardless of who was at fault. Drivers who are moving to a new state should know the tort laws of that state. Otherwise, it's easy to buy the wrong type of insurance, which can mean some serious unexpected costs after an accident occurs. Tort law also affects the cost of insurance in a state. No-fault state auto insurance laws typically mean lower-than-average car insurance rates, although there are many factors at play–car insurance premiums can still be high in a no-fault state.

Some states also restrict the types of discounts that car insurance companies are legally allowed to offer. States like California restrict discounts that could be discriminatory or unfair under certain circumstances. For instance, discounts that apply to long-standing customers might be illegal, as customer loyalty discounts could potentially be used as a way to prevent drivers from shopping around for a better rate. All drivers should know how their state auto insurance laws affect discounts before comparing quotes, as discounts can be a significant factor in the total cost of a car insurance policy. States usually have an insurance commission that can provide some information as to how the state's laws protect consumers. A general understanding of state car insurance laws can be helpful when comparing quotes, as drivers can ensure that they're looking at the right amounts of coverage and accurate premiums.