Car Insurance -- Things You Ought To Know

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. 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. Your legal responsibility for bodily injury or property damage caused by your car is taken care of by liability coverage.

The medical coverage will pay for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

The validity of most car insurance policies is six months to one year. You must renew the policy once it expires.

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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The penalty for driving a car without insurance varies from state to state. In some states, your car will be impounded. Some states impose heavy fines. 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.

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. Although this may sound funny, you can bring down your rates by getting married. I know you won't get married just for this but when you do, it will save you a bit in auto insurance. 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.

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2. If you want to keep your rates down, do NOT "pimp your ride." 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. Any changes to your vehicle takes your rates up.

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. The truth is that most people don't think about this when they are about buying a home.

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. 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. Car thieves are known to go for easy targets. An unlocked car with the engine running? What could be easier?

Car Insurance For Woman

5. As an under twenty five, you can pay lower car insurance premiums 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.

There are two things you must do for this to be possible: The vehicle must be registered in your parents' name and you must live with them. This means that by law they own the car. If the benefits of "independence" outweigh your auto insurance savings then this is definitely not an option for you.

6. You can get savings of hundreds of dollars on your auto insurance policy by requesting for insurance quotes from quote sites. The best way is to visit at least five sites and ensuring that you give the same (correct) information about yourself.

I recommend that you visit a minimum of five quotes sites since that will make it less likely that you'll miss out better quotes not presented by the other sites. This provides you a broader basis for doing more extensive comparisons thereby increasing your chances of better quotes.
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