Comparing auto insurance through online companies is easy and at the same time you can save money. The key is to take the time to get rates from as many companies as possible in order to have the lowest prices.

Beginners to comparison shopping may think purchasing cut-rate 2012 insurance is difficult. Cutting your is not a difficult process. Drivers just need to take a couple of minutes getting comparison quotes from different insurance companies. This can be done by comparing rates here.

What factors impact your insurance rates?

Car insurance premiums for your 2012 can vary widely based upon several criteria. Taken into consideration are:

• Your driving record
• Credit rating
• Your gender can raise or lower rates
• Deductible amount directly impacts your rate
• Your vehicle's safety rating
• Your claim history
• Having current coverage saves
• Whether you rent or own your home

An additional factor that can impact is the year of the vehicle. Newer models have a higher value than older models so repair costs are higher which can inflate annual premiums. On the flip side, newer models may have safety features like a rollover prevention system, forward-collision avoidance, and dual-stage airbags which can lower rates.

Coverage for liability - Liability insurance protects you from damages or injuries you inflict on other's property or people. Liability coverage pays for things such as emergency aid, pain and suffering, and medical services. Liability insurance is relatively cheap so you should buy higher limits if possible.

Collision - This coverage pays for damage to your resulting from colliding with an object or car. You will need to pay your deductible and then insurance will cover the remainder. Collision coverage makes up a good portion of your premium, so consider dropping it from older vehicles. You can also raise the deductible to get cheaper .

Comprehensive coverage (or Other than Collision) - Comprehensive insurance coverage pays for damage that is not covered by collision coverage. You first have to pay a deductible and then insurance will cover the rest of the damage. The maximum payout you can receive from a comprehensive claim is the actual cash value, so if it's not worth much more than your deductible consider dropping full coverage.

UM/UIM Coverage - This protects you and your vehicle's occupants when other motorists do not carry enough liability coverage. Because many people only carry the minimum required liability limits, it doesn't take a major accident to exceed their coverage limits. That's why carrying high Uninsured/Underinsured Motorist coverage is a good idea.

Insurance for medical payments - Med pay and PIP coverage provide coverage for expenses such as doctor visits, EMT expenses, and X-ray expenses. They are often utilized in addition to your health insurance policy or if you lack health insurance entirely. PIP is not available in all states and gives slightly broader coverage than med pay.