Car Insurance -- Explaining Things

When you buy car insurance, you enter into a contract with the insurance company. Under the contract, if your car meets with an accident, the insurance company must pay for the losses. In exchange, you agree to pay the premium.

Car insurance provides 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.

Majority of the car insurance policies are valid for six months to a year. When the validity is over, you must renew the policy.

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 is different in different states. Compounding of the car is done is some states. Some states impose heavy fines. 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 will play an important role 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. 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.

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2. Your rates will jump through the roof if you modify your car. 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. 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. 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 check with your agent before you commit to a new home. 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. This is an open invitation to any thief sniffing around. Every thief checks how easy a target is before making a move. It certainly doesn't get easier for a thief than an unlocked car with a running engine.

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5. A good option for you is to use your parents' car insurance policy. The fact that you are of driving age means that your parents belong to a better risk age bracket.

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 want to be the owner of your car, then be the big boy or girl and also own the costly premiums. Sorry, you cannot have both with this alternative. However, you can still make a lot of savings by following the link at the end of this piece.

6. You will save much by visiting a minimum of 5 quotes sites. That way, you will be able to get the lowest New York auto insurance quotes possible since five sites will give up to 25 quotes altogether.
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