Car Insurance -- Explaining Things

Car insurance is a contract between you and the insurance company. Under the contract, the insurance company agrees to pay your losses if your car meets with an accident. Your part of the contract is to pay the premium.

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. 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.

State laws mandate that your have some form of car insurance if you own or operate a car.

Insurance Quote

Different states have different penalties for driving a car without insurance. Compounding of the car is done is some states. Some states impose heavy fines. You could be in serious trouble if you car is involved in an accident without insurance. You will have to pay out of your own pocket for any injuries or damages.

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.

As the owner of a car, you are responsible for providing insurance for the car, no matter who is operating the car. Your car will be operating illegally if it does not have 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. There is evidence to show that married people are a lot more stable than their unmarried counterparts. This makes them more careful on the road and, therefore, a better risk to insurers. They generally file fewer claims and when they do, they usually cost less.

Cheapest Car Insurance

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. Do you know that some folks are paying much more in auto insurance because of where their homes are? 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. 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. 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.

Cheapest Car Insurance

5. As an under twenty five, you can pay lower car insurance premiums if you use your parents' policy. Your parents are part of a better risk age bracket.

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

6. Visit not less than five quotes sites. Visiting a minimum of five quotes sites raise the chances that you'd receive cheaper auto insurance quotes. This is because insurance companies not covered by one site will be represented by another.

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

Getting your California auto insurance quotes online will help you save a bundle if you take out around 25 minutes to obtain quotes from not less than 5 insurance quotes sites.
Cheaper Auto Insurance
Low Auto Insurance