Car Insurance -- Things You Should Understand
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 covers property, liability and medical coverage. Damages or theft to your car are paid by property coverage. 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 paid by the medical coverage.
Cheap Auto Insurance
The validity of most car insurance policies is six months to one year. When the validity is over, you must renew the policy.
The law in all states require you to have some form of car insurance if you own or operate a car.
The penalty for driving a car without insurance varies from state to state. 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 be financially responsible for paying 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.
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. Getting married will bring down your rate by a huge margin. 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.
2. If you want to keep your rates down, do NOT "pimp your ride." 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. 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?
5. An option for you is to use your parents' auto insurance policy. If you're of driving age, then your parents certainly are far above 25 years which means they are better risk drivers.
To take advantage of this though, you will have to live with your parents and also have the car registered in their name. If you want to be the owner of your car, then be the big boy or girl and also own the higher premiums. Sorry, you cannot have both with this option. However, you can still make massive savings by clicking the link at the end of this piece.
Car insurance covers property, liability and medical coverage. Damages or theft to your car are paid by property coverage. 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 paid by the medical coverage.
Cheap Auto Insurance
The validity of most car insurance policies is six months to one year. When the validity is over, you must renew the policy.
The law in all states require you to have some form of car insurance if you own or operate a car.
The penalty for driving a car without insurance varies from state to state. 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 be financially responsible for paying 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.
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. Getting married will bring down your rate by a huge margin. 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.
2. If you want to keep your rates down, do NOT "pimp your ride." 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. 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?
5. An option for you is to use your parents' auto insurance policy. If you're of driving age, then your parents certainly are far above 25 years which means they are better risk drivers.
To take advantage of this though, you will have to live with your parents and also have the car registered in their name. If you want to be the owner of your car, then be the big boy or girl and also own the higher premiums. Sorry, you cannot have both with this option. However, you can still make massive savings by clicking the link at the end of this piece.
About the Author:
To learn more visit Discount Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba writes on financial matters.