Car Insurance — Clarifying It
By buying a car insurance policy, you are entering into a contact with 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.
Car insurance covers property, liability and medical coverage. 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 medical coverage will pay for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Most car insurance policies are valid for six month to a year. You must renew the policy once it expires.
The law in 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. Some states impound your car. Heavy fines are imposed in some states. 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.
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. Insurers have statistical data that show that people are less reckless and much more careful on the road when they get married. 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. So if you’re really serious about keeping your rate down, leave your car the way it was manufactured.
3. Before you get carried away with the few hundreds you will save on a house, check if it will not cost you much more in auto insurance. Homes in the same neighborhood may fall under different risk zones as far as your insurer is concerned.
So, as part of your home shopping activities, check how this neighborhood will affect your auto insurance rate. I know: That isn’t usually an issue when you’re looking for a home but it’s really important.
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. Car thieves are known to go for easy targets. And what could be easier than a car that’s ready to be driven away — It takes just seconds.
5. An option for you is to use your parents’ car insurance policy. The fact that you are of driving age means that your parents are of a lower risk age group.
There are two things you must do to make this possible: The car must be registered in your parents’ name and you must live with them. If you don’t like the idea of giving the car’s ownership to them and other stuff that may be attached to that, then you’ll have to forget this option.
Get more tips at Discount Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba helps people save on insurance.
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