Car Insurance -- Helping You Understand It

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. 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.

Most car insurance policies are valid for six month to a year. The policy must be renewed on expiration.

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 is different in different states. Some states impound your car. There are heavy fines in some states. If your car is involved in an accident without insurance, the consequences can be serious. 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.

As the owner of a car, you are responsible for providing insurance for the car, no matter who is operating the car. 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. Insurers have statistical data that show that people are less reckless and much more careful on the road when they get married. Furthermore, as a group, their claims are usually less both in number and average cost per claim.

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2. Your rates will jump through the roof if you modify your car. 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. 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.

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. 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. Remember, they look for easy targets. It certainly doesn't get easier for a thief than an unlocked car with a running engine.

Car Insurance For Woman

5. An option for you is to use your parents' auto insurance policy. The fact that you are of driving age means that your parents belong to a lower risk age group.

You have to bear in mind, though, that the vehicle must be registered in their name and you must be living with them if you want to use this option. If you want to own your vehicle, then be the big boy or girl and also own the higher rates. Sorry, you can't have both with this alternative. However, you can still make huge savings by clicking the link at the end of this piece.

6. The most important step to massive savings in auto insurance is comparison shopping -- Given that you do it right. You can get quotes that will have a range that exceeds $1,000. You could conveniently save so much by simply picking the lowest quote. That should apply if you're simply after the lowest price.

Nevertheless, if you're looking for the best price/value then you would have to check the details of the cheapest quotes. Different insurance companies may have different exclusions for similar policies. It's important that you ask the agent what's part of the deal and what's not.
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