Car Insurance -- Clarifying Things

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. Paying the premium is your obligation under the contract.

Car insurance provides property, liability and medical coverage. Property coverage pays for damage to or theft of your car. Your legal responsibility for bodily injury or property damage caused by your car is taken care of by liability coverage.

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.

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. Some states impose heavy fines. Serious trouble. That's what's in store for you if your car is involved in an accident with 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 will play an important role 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. If you operate a car without insurance, you will be in violating the law.

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. Furthermore, as a group, their claims are usually less both in number and average cost per claim.

Affordable Auto 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. 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. 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. 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 is an open invitation to any thief sniffing around. Remember, they look for easy targets. And what could be easier than a car that's ready to be driven away -- It takes just seconds.

Budget Car Insurance

5. Using your parents' car insurance policy is a good option for you an under twenty five. If you're of driving age, then your parents certainly are far above 25 years which means they are lower risk drivers.

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

6. You can save a lot of money in auto insurance if you obtain and compare auto insurance quotes from quotes sites. You will realize savings if you visit just one quotes site. But, you will get better results by visiting at least five.

The simple logic in this is that you will receive many more auto insurance quotes from a wider range of insurance companies. This increases your chances of receiving better quotes.
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