Car Insurance -- Things You Ought To Know

When you buy car insurance, you enter into a contract with the insurance company. Under the contract, if your car meets with an accident, the insurance company must pay for the losses. Your part of the contract is to pay the premium.

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 paid by the medical coverage.

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.

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Different states have different penalties for driving a car without insurance. Compounding of the car is done is some states. There are heavy fines in some states. 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.

The insurance company will consider your credit history, the age and type of your car before offering you a rate.

As the owner of a car, you are responsible for providing insurance for the car, no matter who is operating the car. 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. Furthermore, as a group, their claims are usually less both in number and average cost per claim.

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2. "Pimping your ride" does NOT help if you want lower rates. Doing such reduces your car's safety and, therefore, warrants higher rates as far as the insurer is concerned. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.

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. Homes in the same neighborhood may fall under different risk zones as far as your insurer is concerned.

So check with your agent before you commit to a new home. The truth is that most people don't think about this when they are about buying a home.

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. Never leave your car unlocked and running while you dash in to get something. This simple act makes it very easy for thieves. Every thief checks how easy a target is before making a move. And what could be easier than a car that's ready to be driven away -- It takes just seconds.

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5. Using your parents' car insurance policy is an option for you an under 25. Your parents certainly belong to a better risk age group.

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 do not like the idea of handing the car's ownership to them and other stuff that may be attached to that, then you'll have to forego this option.

6. You can see savings of hundreds of dollars on your auto insurance policy by getting insurance quotes from insurance quotes sites. The best method is to visit at least five sites and making sure that you input the same (correct) details.

I recommend that you use not less than five quotes sites since it will make it less likely that you'll miss out better quotes not carried by the other sites. This gives you a broader basis for doing better comparisons thus increasing your chances of realizing more savings.
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