Car Insurance -- Explaining It

When you buy car insurance, you enter into a contract with the insurance company. If your car meets with an accident, you will be eligible for compensation for the losses under the contract. Your part of the contract is to pay the premium.

Car insurance covers property, liability and medical coverage. Property coverage pays for damage to or theft of your car. The liability coverage will pay for your legal responsibility for bodily injury or property damage caused by your car.

The cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses are paid by the medical coverage.

The validity of most car insurance policies is six months to one year. The policy must be renewed on expiration.

State laws mandate that your 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 is different in different states. Compounding of the car is done is some states. 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 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 will play an important role 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. Insurers have statistical data that show that people are less reckless and much more careful on the road when they get married. Insurers will tell you that their records show that married people make fewer claims. Furthermore, when they do make those claims, they usually cost less on the average than those married by their unmarried counterparts.

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2. "Pimping your ride" does NOT help if you want lower rates. If you want to impress your friends with those extra special features like bigger types than the manufacturer's specification, then be prepared to pay a lot more.

3. It's easy to save a few hundred dollars on a home but lose thousands over the years on auto insurance because of its location. 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 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?

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. 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. This is an open invitation to any thief sniffing around. Car thieves are known to go for easy targets. It certainly doesn't get easier for a thief than an unlocked car with a running engine.

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

You must remember that the car must be registered in their name and you must be living with them if you want to use this option. 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 much money in auto insurance if you obtain and compare auto insurance quotes from insurance quotes sites. You'll make savings if you visit only one quotes site. However, you'll get more by using at least five.

The simple reason for this is that you'll receive a greater number of auto insurance quotes from a wider range of insurance companies. This raises your chances of receiving better offers.
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