Welcome to Cheap Car Insurance - Information on Car insurance companies in arizona

You'd think buying auto insurance wouldn't require much more than a couple of calls. The shocking fact is that rates vary by as much as 300%. What's more, there are numerous types of coverage for everything from bodily injury to damages from a fender-bender. To guide you through the staggering number of choices you'll face, we've prepared the following tips.

* Know what you wane. Before you blister your index finger phoning insurers from coast to coast, it helps to know just what coverage you want. Your state probably has a minimum requirement, which varies depending on where you live. By law, New York State drivers are supposed to carry minimum liability coverage of 25/50/10, meaning $25,000 per person to cover injury, up to $50,000 per accident and $10,000 in property damage to help recover the cost of damages to your car.

State regulations are a start, most experts say. More often than not, you're better off with much more coverage than local laws call for. You should look to beef your policy up to levels covering $ 100,000 per injured passenger, up to $300,000 per accident, and $50,000 in property damage or 100/300/50. That won't dent your premiums much either. And remember this, if you're in an accident and rack up $50,000 in doctor's bills and only carry $25,000, you risk being sued and having your wages garnered until the money is collected. Comprehensive and collision are additional options not mandated by law, but if your car is leased or you have an auto loan, you will probably be required to carry these so that you're fully protected.

* Where to shop. You're likely to first look in the Yellow Pages or on the Internet. That's good, except that a number of fraudulent concerns are now prowling the Web for unassuming consumers, according to Phil Gross of the California Department of Insurance. "You may not want to purchase a policy online but you can certainly find some good information there." Instead, we recommend you peruse the insurance company sites, but don't apply for policies there. Also, some states provide good information on Web sites such as www.insurance.ca.gov. for California.

When checking out coverage, call your state's department of insurance to make sure your insurer is licensed, legitimate and not involved in any regulatory scuffle in your state. Gross also recommends that you eschew insurance brokers, namely because their commissions and fees will push your rates higher.

Start your search with the big companies like State Farm (www.statefarm.com), Allstate (www.allstate. com), USAA (for military officers and families) (800-531-8080) and the American Express Property Casualty Companies (800-842-3344). Gross notes that GEICO (800-841-3000 or www.geico.com) and 20th Century (for California and Arizona drivers, 800-211-SAVE) offer competitive rates because they insure good drivers only and don't pay the high overhead of meeting agents commissions. Senior citizens may want to try the American Association of Retired Persons (AARP) (202-424-3410 or www.aarp.org).

* Know an insurer's strength. According to Michael Dorfsman, director of communications at Standard & Poor's, an insurance company's strength is best measured on a long-term basis." You want to know that an insurer will be able to meet the obligations of its insurance policies." Of the 4,000 or so insurance companies that do business, only 50 or so fail annually. That's a small number that becomes incredibly significant the minute you have a claim and no one's around to pay. Making sure your insurance firm has staying power is easy. First, check company ratings published by Standard & Poor's (202-208-1527 or www.ratings.standard poor com), Moody's Investors Service (212-553-0377), Duff & Phelps Credit Rating Co. (312-368-3198) and A.M. Best Co. (800-424-2378).

While each ratings agency has its own system, you'll find that the rankings generally range from AAA to R (for "regulatory action"). Your best bet is to avoid companies ranked below an A, according to California regulator Gross.

* Get the facts. Keep a copy of your driver's license and vehicle registration with VIN (vehicle identification number). You'll also need to divulge your daily and annual mileage, and general information on your car, such as the make and model. Some insurers will want to know the names, gender and driving histories of every driver in your household. Be aware: giving out Junior's stats, especially if you're not planning to let him use the family Taurus, can hike up your rates, since teens are considered high-risks.

* Know the discounts. Most insurers will give discounts-anywhere from rewarding straight-A students and nonsmokers to people who drive minimally and/or who have safe driving records (See "Premium Performance," Moneywise, June 1997).

* Be careful what you say. Don't fudge on your driving record when setting up a policy. Insurers look for ways not to pay on your claim, and dishonesty will become just one more excuse not to ante up. Insurers also have access to your driving records, and Comprehensive Loss Underwriting Exchange (CLUE) will divulge any claims you've filed recently.

To obtain hack issues containing other parts of this series, please call our circulation department at 212-886-9568.