Car Insurance -- Clarifying Things

Car insurance is a contract between you and the insurance company. Under the contract, if your car meets with an accident, the insurance company must pay for the losses. Paying the premium is your obligation under the contract.

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 taken care of by the medical coverage.

Majority of the car insurance policies are valid for six months 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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Different states have different penalties for driving a car without insurance. Some states impound your car. Some states impose heavy fines. Serious trouble. That's what's in store for you if your car is involved in an accident with insurance. 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. 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.

Affordable Auto Insurance

2. If you want to keep your rates down, do NOT "pimp your ride." Things like changing your tires to bigger ones than specified by the manufacturer, adding equipment that will increase your car's horse-power will cost you a lot more.

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. 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. Remember, they look for easy targets. And what could be easier than a car that's ready to be driven away -- It takes just seconds.

Budget Car Insurance

5. An alternative for you is to use your parents' car insurance policy. If you are of driving age, then your parents certainly are far above twenty five years which means they're better risk drivers.

To take advantage of this though, you will have to live with your parents and also have the vehicle registered in their name. This means that by law they own the car. If the benefits of "independence" outweigh your auto insurance savings then this is certainly not alternative for you.

6. You can get better rates on auto insurance now by visiting at least five insurance quotes sites. Each quotes site will take you around 5 minutes or less to receive quotes. (Some folks fill in information that are not really correct about themselves. That is NOT wise since the quotes you'll get this way will NOT do you any good).

You'll have to pick lowest auto insurance quote for you from the list of quotes obtained. That's all there is to it. However, you could make savings hundreds of dollars.
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