Car Insurance -- Things You Ought To Understand

When you buy car insurance, you enter into a contract with the insurance company. Under the contract, if your car meets with an accident, the insurance company must pay for the losses. Your part of the contract is to pay the premium.

Property, liability and medical coverage are all covered by car insurance. Damages or theft to your car are paid by property coverage. 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.

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.

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Different states have different penalties for driving a car without insurance. In some states, your car will be impounded. There are heavy fines in some states. You could be in serious trouble if you car is involved in an accident without 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. If you operate a car without insurance, you will be in violating the law.

Finally, a few savings tips...

1. Getting married will bring down your rate by a huge margin. It's commonsense that every person becomes more stable and less reckless once they get married. This stability affects such a person for good when he/she is behind wheels. They generally file fewer claims and when they do, they usually cost less.

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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. 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. This doesn't come readily to mind when you're shopping for a new home. Does it?

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 simple act makes it very easy for thieves. Every thief checks how easy a target is before making a move. It certainly doesn't get easier for a thief than an unlocked car with a running engine.

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5. As an under 25, you can pay cheaper car insurance rates if you use your parents' policy. If you're of driving age, then your parents certainly are far above twenty five years which means they are better risk drivers.

There are two things you must do for this to be possible: The vehicle must be registered in your parents' name and you must live with them. If you want to be the owner of your car, then be the big boy or girl and also own the higher rates. Sorry, you cannot have both with this option. However, you can still make huge savings by clicking the link at the end of this piece.

6. Visit not less than five quotes sites. Visiting a minimum of five quotes sites increase the chances that you'd receive more affordable auto insurance quotes. This is because offers not covered by one site would be covered by another.

And, you should understand that because the likelihood of receiving lower auto insurance quotes has to do with the range of quotes you get, the more insurers you receive quotes from, the brighter your chances will be.

Getting your auto insurance quotes online will help you save far more if you take out just 25 minutes to ask for quotes from a minimum of five insurance quotes sites.
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