What is a Car Insurance
The coverage which you are required to carry varies from state to state, as does the exact wording of the regulations in states with no-fault insurance; however, it is much the same in each state.
The first section of the policy is the part that covers your automobile. There are two sections to this part, comprehensive and collision. Collision covers when that tree jumps out in front of you, or another driver carelessly puts his car?s rear end in your way. Comprehensive covers theft, a falling branch, hail damage and all other things that damage your car.
Liability is the second part of your car insurance policy. This covers the damage done to another driver's car when you have caused an accident. Liability coverage will be represented in numbers - for instance, 25/50/10. These numbers mean that your policy covers up to 25,000 in costs per person, up to 50,000 per accident and will cover 10,000 in property damage per accident.
Medical payments are there to cover any party involved in an accident, no matter who is at fault. Your car insurance policy also covers you in case you are hit by a car while walking. If you don't have health insurance, this part of your car insurance helps to cover medical expenses. It may also cover medical expenses which your health insurance does not.
There will also generally be coverage in your policy to account for uninsured and underinsured drivers, which covers you if someone with no (or inadequate) coverage hits your car. This part of the policy also covers hit and runs, Towing coverage can also be added to your policy if you opt for liability as well as comprehensive and collision coverage for a low fee.
You can save a lot of money on car insurance by keeping these rules in mind:
1. When it is time to renew your policy, get a variety of quotes and compare the prices. You can do a comparison of rates on many websites - however, look for quotes on insurance with the same coverage as you have now.
2. See if your home insurance company offers a discount for buying your car insurance from them as well.
3.Ask about discounts. There are a number of discounts offered. For younger, higher risk and higher premium drivers you often can get a discount for driver?s education courses or good student discounts.
4. You may not need to carry full coverage for your car. If you don't have a loan you are paying on the car, you can sometimes save a lot of money by dropping the comprehensive and collision portions of your coverage. Compare the payment your insurance policy will pay out against the Kelly blue book value if your car is totaled. If this cost is higher than two years of premiums, you might want to consider dropping this part of your policy and using the savings to buy a newer car. However, keep the liability insurance - it's important.
5.Get a weather beater. These are older cars that you use for driving back and forth to work. Save the good car for special trips. When you assign the most driving to the old car, carry only liability and use the new car with full coverage for pleasure us only, you save wear and tear on the car and the money spent on the beater is more than covered by your savings.
About the Author: