Car insurance is a form of insurance that automobile owners buy in order to protect themselves from the costs associated with accidents, repairs, personal injury and theft. Most states in the U.S. require all drivers to have some form of car insurance. Each of these states has its own minimum requirements when it comes to coverage, and those who fail to comply may be subject to fines or other penalties.
Auto insurance costs can vary widely depending on the amount and type of coverage that the individual chooses. Some car insurance policies only cover the other driver should an accident occur, while other policies cover both drivers, as well as any property damage that occurs from theft or vandalism. The more coverage purchased, the more expensive the policy cost.http://www.insurance.com/auto-insurance/auto-insurance-basics/8-things-you-should-know-about-auto-insurance.aspx
Types of Car Insurance
These are some of the most common types of car insurance:
- Liability insurance: This type of insurance is designed to cover the other party in case the policy holder causes an accident. Liability insurance is required by most states.http://www.insurance.com/auto-insurance/auto-insurance-basics/8-things-you-should-know-about-auto-insurance.aspx
- Uninsured motorist insurance: This will cover your medical expenses and/or property damage (depending on the type of uninsured motorist insurance) if the party at fault does not have any insurance.http://www.carinsurance.com/Articles/content27.aspx
- Comprehensive coverage: This will cover damage or loss of your vehicle that results from theft, vandalism or other incidents that do not involve an accident.http://www.carinsurance.com/CoverageDefinitions.aspx
- Collision coverage: This will cover damage to your vehicle in the event of an accident.http://www.carinsurance.com/CoverageDefinitions.aspx
- Personal injury protection coverage: This will cover expenses in the event of injury or death to the carrier of the insurance policy, as well as those in the vehicle with him or her.http://www.carinsurance.com/CoverageDefinitions.aspx
How to Save on Car Insurance
Carbuyersnotebook presents a clip that offers some advice on how to save money on their auto insurance policies. The cost of car insurance can vary greatly due to a number of different factors. One of the best ways to keep your premiums down is to drive safely, because having a good driving record allows you a discount with almost all insurance companies.
References
Fast Facts
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Fact:
The amount of the deductible will affect the rate
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Fact:
Prices for insurance vary greatly from company to company
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Fact:
Each state has different insurance requirements
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Fact:
Insurance will cost less if the policy holder's vehicle is not covered
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Fact:
Liability insurance is required by most states
