<p>So many cars, so little time and so much insurance. It seems you find a car you love and can even afford, but the insurance payments burst your bubble and send you back to something more "sensible." According to forbes.com, "...the average price of a new car or light truck in April of 2012 was just a shade over $30k. <a href="http://www.forbes.com/sites/moneybuilder/2012/05/10/average-price-of-a-new-car/" rel="nofollow">$30,303</a> to be exact, which represents a $1200 increase over last year.</p> <p>Cars are expensive enough and if you ask the insurance companies they'll tell you that's why your rates are so high. But what if you're not buying a Bentley or a Porsche? (Just so you know, most people aren't) If the average car runs between $25,000 to $35,000, why are you paying so much in insurance? Shouldn't your payment be in proportion to the cost of repairing and replacing your car? And since almost everyone is driving a car in that price range shouldn't that bring insurance premiums down?</p> <h3>Premiums, Premiums & More Premiums</h3> <p>Insurance premiums are a funny thing. They go up but they rarely comes down. Sure, there are lot of insurance carriers offering money back if you don't get in an accident for a period of time and others are offering to lower your deductible, but no one is offering to lower your premium. Per the birmingham.legalexaminer.com, Allstate's policy creates a <a href="http://birmingham.legalexaminer.com/automobile-accidents/allstates-premium-refund-for-no-accidents-a-good-idea.aspx?googleid=280164" rel="nofollow">financial disincentive</a> for its insured's to report wrecks. In other words, if an Allstate insured rear-ends somebody, and especially if the damage does not appear too great, it doesn't take too big a stretch of the imagination to conclude that the Allstate insured may not be too interested in reporting the wreck to Allstate. After all, he is looking forward to getting 5% of his premium back.While those promotional offers aren't bad they still don't take a dent out of the hundreds of dollars you pay every month to insure a fairly conservative sedan.</p> <h3>Research, Research & More Research</h3> <p>Short of buying an old clunker and not carrying comprehensive, the best and probably the only defense you have against high insurance rates is research. Insurance is a highly competitive business and armed with a lower quote from another company, your carrier is bound to match it rather than lose you as a client. Of course, if your carrier can't meet or beat your new quote, take it on the road and see who can do what for you. Most people never review their insurance policy and never shop their policy around which is why insurance companies are getting richer and you're not.</p> <h3>The Internet is Your Friend</h3> <p>Insurance companies abound and so do their websites. According to agentinsure.com, "According to comScore, an industry leader in quantifying the digital world, the number of competitive insurance carriers and aggregator sites available to consumers via the Internet has grown significantly. In the last quarter of 2010, new sites made up 8 percent of the total number of new auto insurance <a href="http://www.agentinsure.com/insurancetips/autoinsurance/morecarinsuranceandaggregatorwebsitesbreakingintoonlinemarketquotes" rel="nofollow"> submitted online </a>. This marks a new trend in how consumers are shopping for online auto insurance rates." A quick search on the Internet will show you just how many insurance companies there are out there all vying for your business. With a little time and energy you're bound to find a lower rate. But don't let a lower premium sway you. You need to compare coverage as well. While it's not at all impossible to match the coverage you're currently getting with a better rate, it's all too easy to fall for the allure of cut-rate insurance without looking closely at the coverage.</p> <h3>Liability, Collision & Comprehensive</h3> <p>These three words may be the most misunderstood words in the insurance lexicon so let's clear them up:<br /><br />Liability - Liability covers medical bills of you or anyone should you cause an accident. The levels of liability insurance you choose will dictate the amount of medical bills the insurance company is required to pay. Collision - Collision is exactly what it says it is. It pays for the cost of repairs to any vehicle or property you damage. Comprehensive - Comprehensive pays to have your car repaired in case of an accident whether it's with another car, a hit and run or a brick wall.</p> Another good tact is to do your insurance research before you buy your car by checking insurance quotes at <a rel="nofollow" href="http://www.motortradeinsurance.org/">motortradeinsurance.org</a>. That way you'll avoid two kinds of sticker-shock.