Purchasing a new vehicle and looking for affordable car insurance rates? Going online is the best way to source a number of quotes for comparison in a relatively short period of time. However, there are some things you need to know about car insurance before you start your search.

There are a wide variety of different types of car insurance available on the market, each that provide cover for different eventualities. The amount and type of cover that you choose will affect how much you pay for your car insurance.

1. Minimum Liability Insurance

It is a legal requisite that every licensed driver have minimum liability insurance. Liability insurance covers the medical expenses and cost for damages in a motor vehicle accident for a third party. In other words, if you are in an accident, this insurance will pay a minimum legislated amount for expenses incurred by any person (other than yourself) who was injured or whose property was damaged.

This minimum amount varies from state to state and is not always sufficient to cover all third party costs. Any excess damages will need to be paid personally by you. However, you can choose a policy that provides you with higher liability cover to ensure that you will never be out of pocket. This will of course increase your online auto insurance rates.

2. Personal Cover

Personal or first party insurance provides you with cover for your own medical expenses and damages in the event of an accident. You can choose any amount of cover to suit your requirements or your budget. The lower the amount of cover you choose, the less you pay for the insurance.

It is recommended that you opt for cover that is at least equal to the actual value of your car. Alternatively, you can opt for insurance value that will provide you with the replacement value of the car. Be aware that the amount of cover you choose is important in the event that your car is written off in an accident.

3. Theft Insurance

Liability and personal insurance may not provide you with cover if your car is stolen. You may need to select theft insurance to the value of your car in addition to the the other insurance portions. This may increase your insurance quote.

Your theft cover can also include any parts or portions of your car that could be stolen such as your sound system or tires. Personal belongings that are in the car can also be covered for theft at an additional cost.

4. Optional Extras

The above 3 benefits should form the basics of any car insurance policy. However, insurance providers often offer additional benefits that make their insurance more attractive to consumers than the competition. It is important to evaluate the actual benefit of these added extras as to how they will add value to you on a personal basis.

Optional extras may include:

• A motor plan that will take care of the cost of regular maintenance and servicing of your vehicle.
• A breakdown benefit that will pay for incidental repairs should your car malfunction for any reason.
• Dent and windscreen repair.
• Roadside assistance, emergency breakdown repair and a free towing service.
• Legal advice and services in the event of an accident.

If you are driving a new car, you may already have a motor plan in place and your car will still be under warranty from the manufacturer making some of these benefits unnecessary. You may also want to evaluate the cost of each individual service in relation to the additional amount you will be paying for your insurance without using these benefits over the long run.

5. Additional Driver Insurance

Your insurance will only provide cover if you are the driver of the car. However, you can add additional drivers to the policy at an extra cost if anyone else drives your car on a regular basis.

There are two main ways to source quotes for online vehicle insurance quotes:

1. The Comparison Portal

Insurance rate comparison portals are the fastest and most efficient means to source a number of quotes from a variety of different car insurance providers. You only have to enter your personal information and insurance requirements once, and the quotes will be returned to you.

However, there are some disadvantages to this process. You will not be in a position to compare different benefits and policy structures to find one that is the most suitable for you. The quotes that are returned to you will only be based on the information that you have supplied.

Also, the estimates that you receive may not be exact and other factors may play a role in increasing the online car insurance rates once you actually apply for the policy. Rates can also vary greatly depending on the insurance providers and the type of policy that you have been quoted on.

For example, if you are looking for cheap quotes, you may not receive estimates for the type of cover you require. If you are looking for comprehensive car insurance, you may not be provided with quotes that give you the best value for your money.

2. The Individual Approach

You can request quotes for online car insurance rates directly from different insurance providers. Start with the big names in insurance and work your way down to smaller insurance companies. You never know where you will be able to find a quote that will best suit your budget and benefit requirements.

Don’t simply request a cheap quote. Rather ask the insurance companies to provide you with information on all the different policies that they offer. First look at the benefits that you require before looking at the cost.

When you have found at least 3 policies from different providers that meet your needs, you can begin comparing the rates. Remember, to assess each policy as to the value it provides for the money that you are paying.