Car Insurance -- Things You Should Understand

By buying a car insurance policy, you are entering into a contact with the insurance company. Under the contract, if your car meets with an accident, the insurance company must pay for the losses. In exchange, you agree to pay the premium.

Property, liability and medical coverage are all covered by car insurance. Damages or theft to your car are paid by property coverage. If you car causes bodily injury or property damage, the liability coverage pays for your legal responsibility.

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

The validity of most car insurance policies is six months to one year. When the validity is over, you must renew the policy.

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. Some states impound your car. There are heavy fines in some states. You could be in serious trouble if you car is involved in an accident without 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 are also vital factors in determining the rate you have to pay for car insurance.

You are responsible for providing insurance for any car you own regardless of who is operating the car. Your car will be operating illegally if it does not have insurance.

Finally, a few savings tips...

1. Getting married will bring down your rate by a huge margin. 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. 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. Doing such reduces your car's safety and, therefore, warrants higher rates as far as the insurer is concerned.

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. 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. I know: That isn't usually an issue when you're looking for a home but it's really important.

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

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5. A good alternative for you is to use your parents' auto insurance policy. If you are of driving age, then your parents certainly are far above 25 years which means they're 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. If you want to own your car, then be the big boy or girl and also own the costly premiums. 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. Visit at least five insurance quotes sites. Using a minimum of five quotes sites increase the chances that you would obtain cheaper auto insurance quotes. This is because offers not covered by one site will be represented by the other.

Moreover, you should understand that since the likelihood of getting lower auto insurance quotes is related to the range of quotes you get, the more insurance companies you get quotes from, the higher your chances will be.

Getting your auto insurance quotes online will help you save far more if you take out just 25 minutes to ask for quotes from a minimum of five insurance quotes sites.
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