Car Insurance -- Explaining It

Car insurance is a contract between you and the insurance company. Under the contract, the insurance company agrees to pay your losses if your car meets with an accident. In exchange, you agree to pay the premium.

Property, liability and medical coverage are all covered by car insurance. 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.

Insurance Quote

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. 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.

You are responsible for providing insurance for any car you own regardless of 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. It's commonsense that every person becomes more stable and less reckless once they get married. This stability affects such a person for good when he/she is behind wheels. They generally file fewer claims and when they do, they usually cost less.

Cheap Auto Insurance

2. Your rates will jump through the roof if you modify your car. 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. Do you know that some folks are paying much more in auto insurance because of where their homes are? 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. 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. Never leave your car unlocked and running while you dash in to get something. This is an open invitation to any thief sniffing around. 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 rates if you use your parents' policy. If you are of driving age, then your parents certainly are far above 25 years which means they're lower risk drivers.

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

6. You can get lower rates on California auto insurance today by visiting a minimum of five quotes sites. Each quotes site will take you around 5 minutes or less to receive quotes. (Some people fill in details that is not quite correct about themselves. That is NOT smart since the quotes you'll get this way won't do you any good).

You'll simply select what represents the best auto insurance quote for you from the list of quotes obtained. It's as simple as that. However, you could easily save hundreds of dollars.
Best Auto Insurance
Lowest Car Insurance