Car Insurance -- Things You Should Know

By buying a car insurance policy, you are entering into a contact with the insurance company. Under the contract, the insurance company agrees to pay your losses if your car meets with an accident. In exchange, you agree to pay the premium.

Car insurance covers property, liability and medical coverage. In case of damage to or theft of your car, property coverage will pay for the losses. If you car causes bodily injury or property damage, the liability coverage pays for your legal responsibility.

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

Majority of the car insurance policies are valid for six months to a year. You must renew the policy once it expires.

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

Insurance Quote

The penalty for driving a car without insurance is different in different states. Compounding of the car is done is some states. There are heavy fines in some states. Serious trouble. That's what's in store for you if your car is involved in an accident with insurance. You will be financially responsible for paying for any injuries or damages out of your own pocket.

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

It is your responsibility to provide insurance for any car you own regardless of who is operating the vehicle. Your car will be operating illegally if it does not have insurance.

Finally, a few savings tips...

1. Getting married will bring down your rate by a huge margin. Insurers have statistical data that show that people are less reckless and much more careful on the road when they get married. They generally file fewer claims and when they do, they usually cost less.

Cheapest Car Insurance

2. If you want to keep your rates down, do NOT "pimp your ride." 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. Do you know that some folks are paying much more in auto insurance because of where their homes are? Homes in the same neighborhood may fall under different risk zones as far as your insurer is concerned.

Therefore, take your time to ask your agent what effect your new zip code would have on your rates before you make that down payment. I know: That isn't usually an issue when you're looking for a home but it's really important.

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. Never leave your car unlocked and running while you dash in to get something. This is an open invitation to any thief sniffing around. Car thieves are known to go for easy targets. And what could be easier than a car that's ready to be driven away -- It takes just seconds.

Cheap Auto Insurance

5. Using your parents' auto insurance policy is a good alternative for you an under twenty five. The fact that you're of driving age means that your parents are of a lower risk age bracket.

To take advantage of this though, you'll have to live with your parents and also have the car registered in their name. If you want to own your vehicle, then be the big boy or girl and also own the costly premiums. Sorry, you can't have both with this alternative. However, you can still make massive savings by following the link at the end of this piece.

6. You will save much if you only have between 25-30 minutes. Visit, obtain and compare auto insurance quotes from several quotes sites. The lowest quote should be what you pick easily.

Nevertheless, you have to go beyond simply the cheapest price to the best price/value. The lowest priced may not be the best price/value for you as an individual.
Get Cheap Auto Insurance Quotes And Save Much Now!
Get Quick Free NO-Obligation Quotes Now And Save!