OK, its time to update your car insurance. And you're looking online. Here are a few things to keep in mind.

Should you drop comprehensive and/or collision coverage on an older car? It may not be cost-effective to have comprehensive or collision coverage on cars worth less than $1,000 because any claim you make would not substantially exceed the annual premium cost and deductible amounts.

* A broker's fee must be agreed upon in advance.Ê If you choose a broker to place your coverage, ask about the broker's fees.Ê These fees should be disclosed and agreed upon before finalizing the insurance transaction.Ê Remember, broker's fees are in writing, not filed with the state, and are fully negotiable.Ê If the policy is canceled for any reason, the broker's fee is generally not refunded.

* Review the territorial provisions of your policy with respect to driving in Canada and Mexico. Generally, Mexico does not recognize liability insurance issued in California.Ê If you are involved in an accident in Mexico, you are subject to Mexican legal requirements.Ê Therefore, it is strongly recommended that Mexican insurance be purchased prior to entering that country. Some California issued policies do extend limited physical damage (comprehensive and collision) coverage on vehicles for a limited distance while operating in Mexico.

* Most automobile insurance policies provide coverage for other licensed drivers to drive your vehicle on an occasional basis.Ê As coverage can extend differently to you as compared with an occasional driver, it is critical to read and understand your policy terms and provisions before allowing others to drive your vehicle. Check with your agent/broker or company for the details. It is a common practice for insurance companies to exclude a driver from your policy for a variety of legitimate reasons under the law.Ê Such driver exclusions must be stated in the policy or by endorsement.Ê Your coverage is not valid while a specifically excluded driver is allowed to drive your vehicle.Ê Be aware of all policy driver restrictions.

* If you anticipate acquiring a new, replacement, or additional vehicle, contact your agent/broker or company prior to taking possession. Ê It is necessary to determine what coverage will be extended and what coverage will have to be added to your existing policy.Ê If the new vehicle is financed, also check with the lender for their insurance requirements.

When looking for car insurance online, try to visit as many web sites as possible. Keep notes so you can compare many different programs at a glance.