Car Insurance -- Helping You Understand 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. Property coverage pays for damage to or theft of your car. The liability coverage will pay for your legal responsibility for bodily injury or property damage caused by your car.
The cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses are paid by the medical coverage.
Cheap Auto Insurance
Most car insurance policies are valid for six month to a year. You must renew the policy once it expires.
State laws mandate that your have some form of car insurance if you own or operate a car.
The penalty for driving a car without insurance is different in different states. Compounding of the car is done is some states. Heavy fines are imposed 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.
It is your responsibility to provide insurance for any car you own regardless of who is operating the vehicle. It is illegal for cars to be operated without insurance.
Finally, a few savings tips...
1. Marriage is something that will do your auto insurance rates a world of good. This is true even though you can't just go off to marry just because of this. 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. Insurers will tell you that their records show that married people make fewer claims. Furthermore, when they do make those claims, they usually cost less on the average than those married by their unmarried counterparts.
2. "Pimping your ride" does NOT help if you want lower rates. 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. Homes in the same neighborhood may fall under different risk zones as far as your insurer is concerned.
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. This is an open invitation to any thief sniffing around. Every thief checks how easy a target is before making a move. An unlocked car with the engine running? What could be easier?
5. A good option for you is to use your parents' car insurance policy. Your parents certainly belong to a better risk age group.
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. If you want to own your car, then be the big boy or girl and also own the higher rates. Sorry, you can't have both with this option. However, you can still make a lot of savings by following the link at the end of this piece. - 21396
Property, liability and medical coverage are all covered by car insurance. Property coverage pays for damage to or theft of your car. The liability coverage will pay for your legal responsibility for bodily injury or property damage caused by your car.
The cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses are paid by the medical coverage.
Cheap Auto Insurance
Most car insurance policies are valid for six month to a year. You must renew the policy once it expires.
State laws mandate that your have some form of car insurance if you own or operate a car.
The penalty for driving a car without insurance is different in different states. Compounding of the car is done is some states. Heavy fines are imposed 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.
It is your responsibility to provide insurance for any car you own regardless of who is operating the vehicle. It is illegal for cars to be operated without insurance.
Finally, a few savings tips...
1. Marriage is something that will do your auto insurance rates a world of good. This is true even though you can't just go off to marry just because of this. 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. Insurers will tell you that their records show that married people make fewer claims. Furthermore, when they do make those claims, they usually cost less on the average than those married by their unmarried counterparts.
2. "Pimping your ride" does NOT help if you want lower rates. 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. Homes in the same neighborhood may fall under different risk zones as far as your insurer is concerned.
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. This is an open invitation to any thief sniffing around. Every thief checks how easy a target is before making a move. An unlocked car with the engine running? What could be easier?
5. A good option for you is to use your parents' car insurance policy. Your parents certainly belong to a better risk age group.
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. If you want to own your car, then be the big boy or girl and also own the higher rates. Sorry, you can't have both with this option. However, you can still make a lot of savings by following the link at the end of this piece. - 21396
About the Author:
To get more tips visit Discount Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba writes on finance.
posted by X - Men @ 12:53 AM
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