Is this a pipe dream? Getting cheap no-fault auto insurance is like finding the proverbial needle in a haystack. You know its there somewhere, but how in the world are you going to find it?

Well, thank goodness for the Internet. Because on the web you can find anything you want (and a lot of things you dont want). You just need to know how to look.

To find anything, you have to first really know what youre looking for. And if youre clear about no-fault auto insurance (NFAI), youre one in a million. But, if youre not, youll want to do some homework, because its incredibly confusing.

Some states dont offer NFAI. Each individual state has their own regulations for auto insurance companies and policies. Some require NFAI, while others dont. And some offer something similar instead called tort coverage. So, the first step is to get clear how it works in your state.

You can google your states auto insurance regulations on the Internet and look for the types and amounts of coverage minimally required. But be prepared that some state requirements are very low and others dont even require basic liability and/or bodily injury protection.

Once you know the minimum coverage required, you then have to decide how much coverage you want and need for your particular circumstances. The insurance salesmans usual advice is to buy high as much as you can afford. But, since hes earning a commission on the sale, thats what you should expect him to say.

Of course erring on the side of caution is still your best bet, especially if you own your own home or other valuable assets. In case of an accident, you dont want your personal finances on the hook.

When you know how much car insurance you need and want, then its time to shop around. And thats pretty easy to do on the net. If youve never compared rates before, youre going to be shocked at how much difference there is between different companies - hundreds of dollars in some cases.

There are also a lot of ways to save money on no-fault auto insurance. Check into possible discounts for a good credit report, multifamily and multipolicy discounts, driver safety classes, installation of safety/anti-theft devices, etc.

One of the easiest ways to cut car insurance costs is to increase your deductible. For example, raising your deductible from $250 to $500 can lower your annual premium by as much as 10%. Just be sure you always have enough cash available to cover the higher deductible if you should ever need to.

One last point to consider. Cheap isnt necessarily whats best for you. You can get cheaper rates by skimping on your coverage or even possibly dealing with a shady, fly by night insurance company. Michigan state regulators recently caught several scam artists selling bogus no-fault auto insurance policies.

So always be certain youre dealing with a legitimate reputable insurance company, especially if theyre promising outrageously cheap rates. You could end up getting nothing for your money and it would not be considered no-fault of your own.

This article was posted on November 20, 2006