Car insurance is a contract between you and the insurance company. If your car meets with an accident, you will be eligible for compensation for the losses under the contract. Paying the premium is your obligation under the contract.
Car insurance covers property, liability and medical coverage. In case of damage to or theft of your car, property coverage will pay for the losses. The liability coverage will pay for your legal responsibility for bodily injury or property damage caused by your car.
The medical coverage will pay for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Cheap Auto Insurance
Majority of the car insurance policies are valid for six months to a year. The policy must be renewed on expiration.
All states require you to have some form of car insurance if you own or operate a car.
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. 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. 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." 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. Any changes to your vehicle takes your rates up.
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.
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. The only easier thing for a thief would be if you handed over your keys as a gift. Remember, they look for easy targets. An unlocked car with the engine running? What could be easier?
5. As an under 25, you can pay cheaper car insurance rates if you use your parents' policy. If you're of driving age, then your parents certainly are far above twenty five years which means they are lower risk drivers.
You must remember that the vehicle must be registered in their name and you must be living with them if you want to use this option. This means that by law they own the car. If the benefits of "independence" outweigh your car insurance savings then this is certainly not alternative for you. - 29969
Car insurance covers property, liability and medical coverage. In case of damage to or theft of your car, property coverage will pay for the losses. The liability coverage will pay for your legal responsibility for bodily injury or property damage caused by your car.
The medical coverage will pay for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Cheap Auto Insurance
Majority of the car insurance policies are valid for six months to a year. The policy must be renewed on expiration.
All states require you to have some form of car insurance if you own or operate a car.
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. 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. 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." 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. Any changes to your vehicle takes your rates up.
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.
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. The only easier thing for a thief would be if you handed over your keys as a gift. Remember, they look for easy targets. An unlocked car with the engine running? What could be easier?
5. As an under 25, you can pay cheaper car insurance rates if you use your parents' policy. If you're of driving age, then your parents certainly are far above twenty five years which means they are lower risk drivers.
You must remember that the vehicle must be registered in their name and you must be living with them if you want to use this option. This means that by law they own the car. If the benefits of "independence" outweigh your car insurance savings then this is certainly not alternative for you. - 29969
About the Author:
Start making huge savings now at Discount Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba writes on finance.
