Car Insurance -- Things You Need To Know

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. 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. 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.

Most car insurance policies are valid for six month to a year. When the validity is over, you must renew the policy.

The law in all states require you to 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. Some states impound your car. Heavy fines are imposed in some states. If your car is involved in an accident without insurance, the consequences can be serious. You will be financially responsible for paying 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. 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.

Affordable Auto Insurance

2. If you want to keep your rates down, do NOT "pimp your ride." Doing such reduces your car's safety and, therefore, warrants higher rates as far as the insurer is concerned.

3. Do you know that some folks are paying much more in auto insurance because of where their homes are? Also note that a neighbor not too far away might fall under a lower crime zone than you -- This affects rates.

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?

But think about it: If your new zip code adds up to $300 to your annual auto insurance rate, how much would that amount to at the end of your 30-year mortgage?

4. Never leave your car unlocked and running while you dash in to get something. The only easier thing for a thief would be if you handed over your keys as a gift. 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.

Car Insurance For Woman

5. As an under twenty five, you can pay lower car insurance rates if you use your parents' policy. If you are of driving age, then your parents certainly are far above 25 years which means they are better 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. If you don't like the idea of handing the car's ownership to them and other stuff that may be attached to that, then you will have to forego this alternative.

6. The most important key to huge savings in auto insurance is comparison shopping -- Given that you do it right. You can get quotes that will have a range that exceeds $1,000. You could quickly save that much by simply choosing the lowest quote. That should apply if you're simply after the lowest price.

Howbeit, if you're looking for the best price/value then you'd have to look at the details of the cheapest offers. Different insurance companies may have adjustments for similar policies. It's wise to ask the agent what's part of the deal and what's not.
Cheaper Auto Insurance
Low Auto Insurance