Each state has established minimum requirements of auto liability insurance for drivers to carry. Requirements are labeled in a three-part numbers system such as 25/50/25 which is common in most states. The 25/50 numbers refer to bodily injury liability insurance. The 25 describes per person limit, and the 50 describes the per accident limit. The last 25 describes the property damage. To further explain, if you had the minimum insurance required by law, you would have $25,000 worth of bodily injury coverage per person injured with a maximum of $50,000 per accident, and $25,000 to cover any property damage caused by an accident.

If all you can afford is the very minimum that your state requires, then you should buy it and you will be a responsible driver. Most people will carry 100/500/100 or more for two very important reasons. One is in order to give better coverage to who ever they cause damage to, and second, people want to protect accumulated assets that might be vulnerable to a law suit. To buy additional auto insurance will cost you very little more, especially when you consider your assets that are at risk.

Keep in mind that auto liability insurance only covers the party that you injured. To protect your property you must buy collision and comprehensive auto insurance.

Compare Care Insurance Rates; if you are moving to another state, you need to analyze their cost vs minimum requirements. Just because a state has low minimums doesn’t mean they have the cheapest auto insurance. The real truth may mean that their insurance is so high, they drop the minimum low enough so that the poorest drivers can afford to carry it. The bottom line is, you have to be concerned with what you can afford and what you really need to carry.

Here is a list of minimum requirement by state:

10/20/5                  Mississippi
10/20/10               Florida, Louisiana, Oklahoma
12.5/25/7.5          Ohio
15/30/5                  California, Delaware, New Jersey, Pennsylvania

15/30/10               Arizona, South Carolina, Georgia, Nevada
20/40/5                 Massachusetts

20/40/10               Alabama, Connecticut, Maryland, West Virginia

20/40/15               Illinois, Iowa, Texas, Hawaii

25/50/10               Indiana, Washington, Wisconsin, Tennessee
25/50/15              Utah, Idaho, Arkansas, Colorado

25/50/20              Virginia, Wyoming
25/50/25              Rhode Island, New Hampshire, North Dakota, South Dakota
30/60/10              Minnesota, Montana
30/60/25              North Carolina
50/100/25           Alaska, Maine

NOTE:  Minimum requirements are subject to change, therefore you may find some variation in auto insurance from state to state.

If you feel you have a valid claim for discrimination, most companies have a toll-free telephone number listed on the policy to provide customer assistance. If you are not satisfied with the company’s finale, each state has a Consumer Protection Division to consider your grievance.

If these avenues fail solve the possible discrimination, the law provides for suing an insurance company for failing to follow anti discrimination which also includes refusal of insurance. These suits are filed in your district court, but be careful to make sure that your litigation is in good faith, and is based on solid grounds. The down side is that if the court finds that the suit is baseless and filed for harassing, you might be ordered to pay the auto insurance companies legal expenses.

Let’s consider a few circumstances that may place you on shaky ground. General males between the ages of 16 to 25 pay about 6 to 7% higher premiums than females with an equal record regarding tickets and accidents. Statistically male drivers based off of studies have proven to be more dangerous drivers and actually hold 77% more fatal car accidents.

If your neighborhood has a high rate of theft and vandalism, you can expect higher car insurance rate.

If you have a number of speeding tickets, DUI/DWI or reckless driving, many companies may not even accept your applications and of they do you can expect to pay higher auto insurance rates.

The bottom line is that the law requires that every car insurance applicant is treated with equality since it is the law that you are to be covered under insurance before driving on a public road. Should the insurance company discriminate against you, they have to show cognizable evidence that you are a greater risk by comparison to others. They can not refuse to renew your policy when a young driver is added to your policy.

Age would be a key factor and if you are below 25 years of age you are placed in the group that statically are more prone to accidents compared to drivers who are above this age. If you are below 25 you’ll usually pay more, above 25 just the opposite.

Women are historically safer drivers than men; therefore they are typically rewarded with lower car insurance premium compared to men.

What part of town you live in makes a big difference when determining your car insurance rate. If you live in a neighborhood with a high rate of theft and vandalism, you can expect higher car insurance rate. By the same token if you live in the area where there are less traffic and crime rates naturally you are going to be viewed at a lower risk.

One thing you can control is traffic violations such as speeding tickets, DUI/DWI or reckless driving. In fact these violations are so negative that some insurance companies may not even accept your applications if you have a bad driving record. With these “black eyes” on your record you can expect to have higher auto insurance rates. On the other hand if you have a clean driving record, you can expect to benefit from auto insurance discounts.

If you are insuring a standard all American vehicle you’ll enjoy cheaper rates vs a luxury auto, which you can expect to pay a higher rate. It is a simple fact, expensive autos cost more to repair therefore all of those who own such an auto have to share in this cost of accidents.

The insurance underwriters through historical data have determined that a good credit rating means that you are a responsible person and as a policyholders you will probably also be a responsible driver. If you have a few flaws on your credit rating, this is another incentive for you to strive to make every effort to clean it up.

There are other factors that evaluated in establishing auto insurance rates such as marital status, accident claims, occupation, education, driving distance to work, driving experience, safety features to name a few.

Prior to buying auto insurance, spend some time to become cognizant of these factors to enable you to qualify for lower auto insurance premiums. It is also very important to make sure you learn all about auto insurance discounts because they can also lower your premiums.

If you have not made a comparison of your auto insurance company in the last year or so, I can almost guarantee you that you are paying too much for your insurance. This is an important part of financial planning and a comparison could save you several hundred dollars or more each year. If your insurance agent views you as a captive customer it is unlikely he will call you and tell you that he can save you a few bucks without changing the coverage. The only way to get a better deal is to comparison shop. Insurance agents and companies will offer you some great deals to get you as a customer, and if your agent knows you are a vigilant comparison shopper, they will be much more likely to hustle to keep you.

The lowest car insurance quote may not always be the best and there is no guarantee that you will be saving money. When you look at the coverage available from different companies you may find they are not be the same. You have to compare terms of coverage as well as premiums when comparing auto insurance companies. If you don’t you might find yourself in a heap of trouble if you need to make a claim.

Before you start the process of auto insurance comparison, consider a few things you may want to correct, adjust, or be aware of in order to get the best and lowest price quote:

• The best time to start your search for auto insurance company comparisons is when your existing policy is coming up for renewal, relocating to another state or when you buying a new car. Don’t wait until the last minute as it takes time for the insurance company to prepare and return the quote.
• The lower cost quote is only one of the considerations therefore you have to be sure to compare apples with apples. Low premiums could mean much more expense later when you are making a claim if the policy doesn’t offer sufficient coverage or the company quibbles over paying the claims.
• When getting car insurance quotes, set the coverage limits and the deductibles at levels you can afford and only compare those quotes that contain a minimum of desired coverage.
• List any special after market equipment that has been installed on you car.
• Consider other insurance you might want to bundle with your auto insurance such as home or renters insurance. Many auto insurance companies offer significant discounts to customers if they can write these other policies.
• Always compare discounts as no two people have exactly the same driving history or risk factors, therefore you should compare companies that play to your strengths. One auto insurance company might offer discounts for a safe driving history, while others offer savings if you are a member of certain professional organizations or have defensive driving training.
• Each state rates auto insurance companies and it is imperative to compare how substantial, their credit rating, and how well they pay their claims as well as the policies. If you need to file a claim the last thing you want to hear is a message on the phone of the insurance company saying, “This number has been disconnected”.
• Look at the model and make of your car; a sports model will cost you more than a snail car.
• Remember that a clean driving history will be a big plus, however if you have a history of tickets and/or other driving offenses, you can expect to receive a higher auto insurance quote. This is not a killer though as each company views discounts differently and in the end may not affect the premium.
• Compare the available discounts each insurance company offers as they will offer discounts for things like seat belt use, airbags, anti-theft alarms and even for being the owner of multiple vehicles.

Once you have completed your auto insurance comparison shopping, analyze your quotes. If you have some negatives possibly you will have enough positives to offset them.