Car Insurance -- Explaining Things

By buying a car insurance policy, you are entering into a contact with the insurance company. If your car meets with an accident, you will be eligible for compensation for the losses under the contract. In exchange, you agree to pay the premium.

Car insurance provides 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 cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses are taken care of by the medical coverage.

The validity of most car insurance policies is six months to one year. When the validity is over, you must renew the policy.

All states require you to have some form of car insurance if you own or operate a car.

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The penalty for driving a car without insurance varies from state to state. Compounding of the car is done is some states. Some states impose heavy fines. If your car is involved in an accident without insurance, the consequences can be serious. 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.

It is your responsibility to provide insurance for any car you own regardless of who is operating the vehicle. 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. 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.

Discount Auto 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. 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. Also note that a neighbor not too far away might fall under a lower crime zone than you -- This affects rates.

So check with your agent before you commit to a new home. 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. A lot of folks have lost their cars in the short seconds that they took to dash inside to get something while leaving their cars running and unlocked. Don't make this mistake. 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. An unlocked car with the engine running? What could be easier?

Discount Auto Insurance

5. A good option for you is to use your parents' car insurance policy. The fact that you are of driving age means that your parents belong to a better risk age bracket.

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

6. You will save a lot of money in auto insurance if you obtain and compare auto insurance quotes from quotes sites. You'll realize savings if you go to just one quotes site. But keep this in mind, you will get better results by visiting at least five.

The plain logic in this is that you will get a greater number of auto insurance quotes from many more insurance companies. This increases your chances of receiving better rates.
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