Car Insurance -- Things You Ought To Understand

When you buy car insurance, you enter into a contract with the insurance company. Under the contract, the insurance company agrees to pay your losses if your car meets with an accident. Paying the premium is your obligation under the contract.

Car insurance covers property, liability and medical coverage. Property coverage pays for damage to or theft of your car. The liability coverage will pay for your legal responsibility for bodily injury or property damage caused by your car.

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.

Insurance Quotes

The penalty for driving a car without insurance is different in different states. Compounding of the car is done is some states. 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 may have to comply with the financial responsibility laws including having to pay for any injuries or damages out of your own pocket.

Your credit history, the age and type of your car are also vital factors in determining the rate you have to pay for car insurance.

You are responsible for providing insurance for any car you own regardless of who is operating the car. It is illegal for cars to be operated without insurance.

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. Insurers will tell you that their records show that married people make fewer claims. Furthermore, when they do make those claims, they usually cost less on the average than those married by their unmarried counterparts.

Car Insurance For Woman

2. "Pimping your ride" does NOT help if you want lower rates. 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. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.

3. It's easy to save a few hundred dollars on a home but lose thousands over the years on auto insurance because of its location. 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. This doesn't come readily to mind when you're shopping for a new home. Does it?

Since you may live in the same home for decades to come, a difference of $200 in auto insurance rates would amount to thousands over the years.

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. Remember, they look for easy targets. And what could be easier than a car that's ready to be driven away -- It takes just seconds.

Cheapest Car Insurance

5. Using your parents' auto insurance policy is an option for you an under twenty five. Your parents are part of a lower risk age group.

To take advantage of this though, you'll have to live with your parents and also have the car registered in their name. This means that they legally own the car. If the benefits of "independence" outweigh your auto insurance savings then this is definitely not alternative for you.

6. The most important route to reasonable savings in auto insurance is comparison shopping -- That's if you do it well. You can get quotes that will have a difference in excess of $1,000. You could easily save so much by just choosing the lowest quote. This should be the case if you're simply after the lowest price.

Howbeit, if you want the best price/value then you'd have to check the details of the lowest offers. Different insurers may have adjustments for similar policies. It's a good idea to ask the agent what's part of the deal and what's not.
Get Cheap Auto Insurance Quotes And Save Much Now!
Get Quick Free NO-Obligation Quotes Now And Save!