Car Insurance -- Things You Ought To Know

When you buy car insurance, you enter into a contract 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.

Property, liability and medical coverage are all covered by car insurance. 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 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.

State laws mandate that your have some form of car insurance if you own or operate a car.

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The penalty for driving a car without insurance is different in different states. In some states, your car will be impounded. 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. If you operate a car without insurance, you will be in violating the law.

Finally, a few savings tips...

1. Although this may sound funny, you can bring down your rates by getting married. I know you won't get married just for this but when you do, it will save you a bit in auto insurance. 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. Furthermore, as a group, their claims are usually less both in number and average cost per claim.

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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. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.

3. Do you know that some folks are paying much more in auto insurance because of where their homes are? Also note that a neighbor not too far away might fall under a lower crime zone than you -- This affects rates.

So, as part of your home shopping activities, check how this neighborhood will affect your auto insurance rate. The truth is that most people don't think about this when they are about buying a home.

But think about it: If your new zip code adds up to $300 to your annual auto insurance rate, how much would that amount to at the end of your 30-year mortgage?

4. Never leave your car unlocked and running while you dash in to get something. This simple act makes it very easy for thieves. Remember, they look for easy targets. It certainly doesn't get easier for a thief than an unlocked car with a running engine.

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5. As an under 25, you can pay lower car insurance rates if you use your parents' policy. If you are of driving age, then your parents certainly are far above 25 years which means they're lower risk drivers.

You have to bear in mind, though, that the car must be registered in their name and you must be living with them if you want to use this option. If you do not like the idea of giving the car's ownership to them and other stuff that may come with it, then you will have to forego this option.

6. You can get lower quotes on California auto insurance today by visiting a minimum of five insurance quotes sites. Each quotes site will require about 5 minutes or less to receive quotes. (Some people present details that is not really true about themselves. That isn't wise as the quotes you'll get this way won't do you any good).

You'll have to select the best auto insurance quote for you from the list of quotes obtained. It's as simple as that. However, you could easily save hundreds of dollars.
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