Research is the first step you need to take when you are choosing auto insurance. You need to evaluate your vehicle and decide what type of options you would like to have insured. Some people will choose a liability only policy if their vehicle is older. If you have taken out a car loan to purchase your vehicle, you will probably have full coverage insurance. Full coverage insurance protects damages to your car and yourself instead of just the other person or car you are in an accident with. Here are some of the common options a car insurance provider will offer you:

• Property Damage - This protects you if your car damages someone's property.
• Bodily Injury - This provides protection for you if you injure or kill someone while driving your car.
• Medical Payments - This will cover medical expenses for you or anyone else who was in your car at the time of the accident.
• Personal Injury Protection - If you kill or injure someone in a car accident, this coverage will protect you from being sued.
• Comprehensive Coverage - This provides coverage from natural disasters and fires.
• Rental Reimbursement Coverage - If you are in an accident and your car needs repair, this coverage will pay for a rental vehicle.
• Uninsured Motorists Coverage - If an uninsured driver crashes into you, this will pay for your injuries even if the crash isn't your fault.
• Collision Insurance - This insurance pays for the damage to your car if you are hit or you hit another vehicle or object.

Each auto insurance company has their own standards as to what type of coverage you can have. Some companies will not allow you to have certain coverage options if you have filed several insurance claims in the past. Other companies will offer you all the options available, even if you don't need them, just be sure you have a good understanding of all the different options before you choose your insurance.

A great way to find a good auto insurance provider is to ask your family members, friends, and coworkers. A few questions you need to ask should include the following:

• How easy was it to file a claim?
• How is their customer service department?
• What type of rates do they offer?
• How are their local offices?

Of course everyone has different opinions on what is important. Some people like an auto insurance company that provides 24/7 customer service, while that may not be a big selling factor to others. Make a list of the things you think are important and be sure to ask about them when you are talking with different companies.

What Auto Insurance Does
So how does auto insurance protect you exactly? Auto insurance basically becomes your financial shield if your car is stolen, vandalized, or involved in an auto accident. Like health insurance, you will have a policy and pay a monthly or yearly premium to the auto insurance provider. The policy will outline everything that is covered by them. For example, you may have a "liability only" plan versus a "full coverage" plan. The liability only plan will pay for damages done by you to the other car, but it will not pay for any damages associated with your car. A full coverage plan will pay for the damages to the other car and the damages to your car.

Most auto insurance policies will protect you in the following situations:

• Reimbursement for a stolen car
• Reimbursement for a wrecked car
• The cost of repairs if your car is damaged in an accident
• Legal damages if you are in an accident and you injure someone else
• Medical expenses if you are injured in an auto accident

Again, depending upon the auto insurance provider, you could have additional benefits. Some auto insurance companies will also provide you with a discount if you insure your car and home with them. Allstate boasts that they will provide discounts if you remain accident-free for 12 months, they call it "rewards for being a good driver". As you can see, you need to shop around a little to find an auto insurance provider who can help you.

Finding the Right Auto Insurance Provider
If you have done all the research and you feel you are ready to find an auto insurance provider, it is time to make a list of different auto insurance companies. With most of the larger auto insurance companies, you can fill out an application online and find out in a matter of minutes if you are eligible for auto insurance.

One of the most important steps you can take when searching for auto insurance is to know your state's auto insurance requirements. Auto insurance is necessary in the United States, but the level of accountability is different from state to state. Some states will require you to carry a minimum amount of liability coverage. Other states have a "no-fault" auto insurance system. The cost of medical expenses and car damage is also up to the state laws, so be sure to check with your local DMV about the state auto insurance laws before you choose a provider.

Because each auto insurance company has a different set of standards, the prices can be drastically different from company to company. You may find that for 6 months, Progressive will charge you $400 for a mid-size SUV, and Geico will charge you $350 for 6 months. It just all depends on the standards of the auto insurance company; this is why it is so important to shop around before you settle on just one auto insurance provider.

When you fill out the application for auto insurance, you may receive a quote in a manner of minutes with one company and you might have to wait a couple days with another. If you have been with a certain auto insurance company for a long period of time, they may be willing to offer you discounts, or reduce your rates. Inform them that you are shopping for new auto insurance and see what they are willing to do to help keep you as a customer.

Ask the different auto insurance companies about their rate change policies. Some insurance companies will double your rates if you are involved in an accident or if you insure a teen age driver. Other companies will slightly increase your rates for a speeding violation or something else. If your auto insurance company is threatening to raise your rates, it's a good time to start shopping for another insurance provider. An auto insurance policy is not a contract, so keep that in mind when you purchase auto insurance. You may have a difficult time canceling your policy and trying to get your pre-paid money back, but in the end, it is not a binding contract, so you can leave when you need.

In the end, you should find an auto insurance company who wants to work for you. Auto insurance companies need you a lot more than you need them. Like any other business, without customers, the insurance company wouldn't survive. So don't just sign up for the first auto insurance company who offers you a deal. Make the auto insurance companies fight for your business. If you like Progressive, but their rates are higher than Geico, tell them and let them go to bat. You will be surprised how a little competition will force another company to magically match an "impossible" quote.

Some people are able to obtain discounts on their auto insurance if they insure their home or purchase a life insurance policy. Ask about the discounts the auto insurance company will provide if you insure more than one car or you take out multiple policies. Now with all the research and all the information you have handy, you won't have a problem finding a good auto insurance provider who is willing to work for you!