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Car insurance is something which we rarely think of, but all need. You may not spend a lot of time thinking about your policy unless you really need it. Most of us for this reason have little idea if we are really getting a good deal on our insurance. Learning a bit about car insurance can help you to avoid being taken in by smooth talking insurance salespeople and buying a policy with coverage you don’t really need.

The minimum coverage which you are required to have is different in each state. The exact stipulations of thee no-fault laws also vary slightly, but work basically the same everywhere.

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 coverage protects everyone involved in an accident, regardless of who was at fault in the accident - this part of your policy even covers you if you are hit while walking! Medical coverage will cover you of you don’t have health insurance and will also cover the costs which your health insurance does not cover.

There are additional coverages in the policy such as uninsured/under insured motorists, which pays if someone hits you without any or enough coverage. This also covers a hit and run. Also towing may be added for a nominal sum if you have full coverage, both liability and comprehensive and collision.

Keeping a few simple rules in mind can save you a lot of money on car insurance:

1.Always get several quotes when it’s time to renew your policy. There are several Internet sites that you simply fill out the form once and they would check hundreds of companies. Be sure you always compare like coverage. Check to make sure that all quotes contain exactly the same thing you have.

2.Check for discounts with your homeowners insurance company. Sometimes they offer a discount if you carry both products with them.

3. Ask if any discounts are available. There are often discounts available for drivers who have higher premiums (such as young drivers) who maintain good grades (if students) or for those who take additional driving courses.

4.See if you really need to cover your own car. Unless you have a loan on the car, sometimes it?s cheaper to drop the comprehensive and collision portion of the policy. Calculate what the company pays you with the Kelly blue book rate, if you total the car, less the deductible. If this is less than two year?s premium, consider dropping the coverage and tucking the money away for a new car, just in case. Don?t be cheap where the liability portion is concerned. The increase cost is worth a little extra coverage.

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.

Tags: Auto Insurance

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