Car Insurance -- Helping You Understand Things

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. Your part of the contract is to pay the premium.

Car insurance provides 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 cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses are taken care of by the medical coverage.

Majority of the car insurance policies are valid for six months to a year. The policy must be renewed on expiration.

The law in all states require you to 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 varies from state to state. Some states impound your car. Some states impose heavy fines. You could be in serious trouble if you car is involved in an accident without 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.

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. 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. It's commonsense that every person becomes more stable and less reckless once they get married. This stability affects such a person for good when he/she is behind wheels. Furthermore, as a group, their claims are usually less both in number and average cost per claim.

Car Insurance For Woman

2. Your rates will jump through the roof if you modify your car. Doing such reduces your car's safety and, therefore, warrants higher rates as far as the insurer is concerned. Any changes to your vehicle takes your rates up.

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. Do you know also know that homes within the same neighbor might actually fall into different risk zones according to the insurance industry's mapping?

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.

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. The only easier thing for a thief would be if you handed over your keys as a gift. Remember, they look for easy targets. And what could be easier than a car that's ready to be driven away -- It takes just seconds.

Car Insurance For Woman

5. As an under twenty five, you can pay cheaper car insurance premiums if you use your parents' policy. Your parents are part of a lower risk age group.

There are two conditions that you must fulfill for this to be 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 come with it, then you'll have to forget this option.

6. You can get lower rates on California auto insurance now by visiting at least five insurance quotes sites. Each quotes site will take you around 5 minutes or less to obtain quotes. (Some people present information that are not really true about themselves. That is NOT a smart move since the quotes you'll get this way won't be of any use to you).

You'll have to pick lowest auto insurance quote for you from the list of quotes you've obtained. It's as simple as that. However, you could get savings hundreds of dollars.
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