Car Insurance Basics - things to know

Car Insurance Basics: Things that You Should Know Before You Buy

Having car insurance is mandatory in most states.  Years ago, whether a person had car insurance was a decision that they could make.  In the past few years, however, laws have been passed making purchasing car insurance mandatory. 

Why Is Car Insurance So Important?

Car insurance is important because it can protect you in the case of an accident.  What would you do if you were in an accident which was your fault and you had no insurance?  Where would you get the money to pay for the damages to your vehicle and the other driver’s vehicle? What would happen if the passengers in the other vehicle were injured?  How would you pay for their medical bills if they chose to sue you?  In cases like this, a person can lose their home and everything that they own.  This is why it is so important that people have car insurance. 

Why Do I Need to Shop for Quotes Before Purchasing my Car Insurance?

Shopping around for the best quote is very important when it comes to purchasing a car insurance policy.  Without shopping around first, you could end up paying hundreds of more dollars a year than you should be.  By shopping around you can find the lowest rate around. 
There are a few ways that a person can shop around for a policy.  The first way is to do it online.  This is the easiest, most convenient way of finding the cheapest car insurance.  When a person shops for car insurance quotes online, they can do it at any time of the day.  Shopping for car insurance quotes online does not have to be done during regular business hours.  A person can find an insurance quote from their own home while still in their pajamas.  As long as the driver has all of the necessary information gathered before sitting down to shop for a quote, the shopping process should not take very long.

What Keeps my Insurance Rate Low?

There are certain facts that can keep a person’s insurance rate down.  Some of the things that will save you on insurance premiums are things that you can help, other things are things that are out of your control.

One thing that a person can do to keep their insurance rate down is to try to keep a good driving record.  This includes getting no traffic violations, getting no speeding tickets, and having no accidents that are your fault.  If a person is able to keep a spotless driving record, their insurance premiums will be low.  If a person has had a poor driving record in the past, it will not follow them around forever.  After three years, a person’s driving record will be cleared.  This way, every three years a driver has the chance to start over with a clean slate.

The type of vehicle a person drives can also keep their rates low.  If a person is driving a car which is a “family car,” for example, this can keep insurance premiums down.  If a person drives a sports car, the premiums could be higher.  This is because a person is less likely to go speeding around in a minivan which goes ninety miles an hour at the most than a sports car which can max out at one hundred twenty miles per hour.

Having a car which is equipt with safety features can also help to keep a person’s insurance premium down.  If a car has anti lock breaks, they could end up saving money on their insurance.  Anti lock breaks do just what they say.  They prevent the breaks from locking up.  This will prevent accidents.  If a vehicle is equipt with automatic seat belts and air bags, the driver can save money on their insurance.  Automatic seat belts make it difficult for a person to forget to put their seat belt on.  This way, if there is an accident the driver has less chances of being injured.  The same is true with the air bag.  The less a person is likely to be injured, the lower their insurance rates will be. 

There are also a few things that can keeps a person’s insurance rates down that they cannot change.  A person’s age for example can make a difference in their insurance rates.  A teenager will have a much higher rate than a person in their forties.  This is because a teenager does not have the experience that a middle-aged driver has.  A person’s sex can also have a hand in how high their insurance rate will be.  Females have lower rates than males do.  Another fact that cannot be helped but does change a person’s insurance rate is the amount of time that they have been driving.  A person who has had their licence for one year will have higher insurance rates than a person who has had their licence for ten years.

What if I’m Looking for Insurance for my Teenager?

If a person is looking for car insurance for their teenager, there are a few things that they should know before purchasing the insurance. 
The first thing that they should know is that the parent has the choice of how they want their child insured.  They can either add their child onto their insurance policy, or they can get their child their own policy all together.  If the parent wants to put the child on their policy, the vehicle must be in the parent’s name.  If not, the child must get their own insurance policy. 

There are a couple of discounts that a parent can get for their teen.  If your teenager has taken a driver’s training course and has passed it, their insurance rates can be a great deal lower than a teenager who did not complete driver’s training. 

Another deduction that a teenager can get on their car insurance is the “good student deduction.”  This is a deduction for students who get good grades.  This will not only make a student want to do well in school but it will also save on insurance as well.  Knowing about any deductions that a teenager can get is important.  Their car insurance rates are already high enough as it is. 

Knowing as much as possible about car insurance before purchasing it is important.  Doing research will save money.