Car Insurance -- Clarifying It

By buying a car insurance policy, you are entering into a contact with the insurance company. Under the contract, if your car meets with an accident, the insurance company must pay for the losses. Paying the premium is your obligation under the contract.

Property, liability and medical coverage are all covered by car insurance. In case of damage to or theft of your car, property coverage will pay for the losses. Your legal responsibility for bodily injury or property damage caused by your car is taken care of by liability coverage.

The medical coverage will pay for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

The validity of most car insurance policies is six months to one year. The policy must be renewed on expiration.

The law in all states require you to have some form of car insurance if you own or operate a car.

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Different states have different penalties for driving a car without insurance. In some states, your car will be impounded. Some states impose heavy fines. Serious trouble. That's what's in store for you if your car is involved in an accident with insurance. You will have to pay out of your own pocket for any injuries or damages.

The insurance company will consider your credit history, the age and type of your car before offering you a rate.

As the owner of a car, you are responsible for providing insurance for the car, no matter who is operating the car. If you operate a car without insurance, you will be in violating the law.

Finally, a few savings tips...

1. Marriage is something that will do your auto insurance rates a world of good. This is true even though you can't just go off to marry just because of this. Insurers have statistical data that show that people are less reckless and much more careful on the road when they get married. Furthermore, as a group, their claims are usually less both in number and average cost per claim.

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2. Your rates will jump through the roof if you modify your car. Things like changing your tires to bigger ones than specified by the manufacturer, adding equipment that will increase your car's horse-power will cost you a lot more. Any changes to your vehicle takes your rates up.

3. Before you get carried away with the few hundreds you will save on a house, check if it will not cost you much more in auto insurance. Do you know also know that homes within the same neighbor might actually fall into different risk zones according to the insurance industry's mapping?

So, as part of your home shopping activities, check how this neighborhood will affect your auto insurance rate. The truth is that most people don't think about this when they are about buying a home.

Remember, you might live in this home for up to 20 years or more. If its location makes you pay up to $200 more in premium, that will add up to $4,000 within that time frame.

4. If you must quickly get something inside, turn your car off, lock up and pocket your keys. Don't leave your car unlocked and running. This is an open invitation to any thief sniffing around. Car thieves are known to go for easy targets. It certainly doesn't get easier for a thief than an unlocked car with a running engine.

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5. An option for you is to use your parents' auto insurance policy. If you are of driving age, then your parents certainly are far above 25 years which means they are lower risk drivers.

You have to bear in mind, though, that the car must be registered in their name and you must be living with them if you want to take advantage of this option. This means that they legally own the vehicle. If the benefits of "independence" outweigh your car insurance savings then this is certainly not alternative for you.

6. You'll save much if you will shop around and do thorough comparison. The the difference in quotes returned for a request could be as wide as $1,000 for a given profile. Although this is a good thing, it's important that you don't get too excited yet. It's not usually that easy if you want the best price/value.

The cheapest price may not offer you the best price/value. Although each of the quotes offered will certainly give you the same basic coverage, there could be a number of differences in the details of coverage. This makes it crucial that you find out if there aren't any exclusions that won't serve your best interest.

Don't forget to treat these no-obligation quotes just that way. Don't feel you have to pay unless you've got all your questions answered satisfactorily. You will never get rude shocks later if you do this.
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