Vehicle insurance (also known as car insurance, motor insurance or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions, such as keying and damage sustained by colliding with stationary objects.

Car insurance

What Is Car Insurance?

Car insurance is a system in which people pay an annual or monthly premium to a car insurance company to insure their car. Car companies in turn use that money to pay for the cost of damages or repairs to a vehicle. This system makes it easier than each individual paying for their own insurance. Not only can auto insurance companies offer a better rate but it also makes it easier and more convenient. Car insurance is used in case of an accident, theft or even damage while operating an auto vehicle.

Who Needs Car Insurance?

Typically any licensed driver who wishes to operate a vehicle must have car insurance. They may have car insurance in their own name or be listed under someone else's car insurance policy. Most states require any licensed driver who owns a vehicle to have a license. Passengers even those who do not have a license may get some forms of car insurance to cover them in case of an accident.

What States Require Car Insurance?

Although Most states by law do require drivers to have car insurance there are very few places that do not require it. New Hampshire as well as Virginia are two of the only states in the country that do not require you to have auto insurance. Although those states do require you to have some forms of insurance they do not require it to be auto insurance. All of the other states throughout the United States do require that any operating vehicle is insured. It is against the law to operate a vehicle without insurance in 48 of the 50 States.

What Are The Penalties For Not Being Insured?

Since Most states do require auto insurance by law, there are penalties for driving without it. Drivers who are caught driving without insurance can receive heavy fines as well as a drivers license suspension. Some extreme cases may even require an arrest or jail time. Often times if you are caught driving without insurance or even having a lapse in insurance many car insurance companies will either charge you a premium fee for a policy or will decline you a policy all together.

What Are Some Of The Things You Need To Obtain Car Insurance?

When trying to obtain car insurance there are a few things you will need. First and most important you will need to have a valid driver's license. This is verification that you are legally allowed to drive. Without a valid driver's license you will not be able to get a car insurance policy. Car insurance companies will use the driver's license as a way to check your driver's safety background history. Your license will allow car insurance companies to see any violations or accidents you have had in the past. Another piece of information you need when obtaining a car insurance policy is your social security information. Car insurance companies will use this to do a background check. Car insurance companies will also ask for some credit info as another way of doing a background check. Car insurance companies will use a background check to determine if you are a good candidate for a policy they will also use it to determine the rate of that policy.

When trying to obtain Auto Insurance you will also need some vehicle information. You will need the vehicle's VIN number which is often located on the front or the side of the car. If you are unable to find the VIN number most insurance companies will help you to located. You will also need to know the amount of miles on the car. This can help determine how much your policy will cost. Many car insurance companies also ask for the make and model as well as the year of the car. Often cars that are considered sport Vehicles as well as dangerous can often be quoted higher. Cars that are older may allow for a lower policy rate.

Some other things you may need for obtaining a car insurance quote is a bank account, a debit card, pay stubs, or even more information for the verification process. Some car insurance companies allow you to pay monthly fees While others require Annual fees.

What Things Affect The Price Of Insurance?

There are many different things that can affect the price of an auto insurance policy. One of the top things is your driver's safety history. Car insurance companies will take into account your driving history such as moving violations, accidents, tickets and other driving infractions. A bad driving history will cause the policy rates to be much higher.

Another thing that affects the price of an auto insurance policy is the location in which the driver lives. Areas with high crime rates or even just high traffic volume are considered more dangerous and often mean a higher rated auto insurance policy. Busy cities such as New York and Los Angeles can often yield some of the highest policies. And another thing that will affect the cost of an auto insurance policy is the driver's age. Typically drivers who are over 25 years old will receive a better rate. Drivers under 25 are considered more dangerous or likely to have an accident so they are often quoted higher. Your gender also determines how much auto insurance you will pay. Women are often considered safer drivers and will typically have a lower policy rate than men.

There are other factors that will determine how much an auto insurance policy rate will be. Whether the driver is married or single can affect the rate price as well as how good or bad their credit score is. Typically those with a higher credit score will receive a better rated policy. Those wgo also have a better background check especially a good driver safety background will also receive lower premiums.

The make and model of the vehicle as well as the year can also affect the price of the policy. Fancier models such as BMW or Mercedes will require a higher policy as they are more sought-after vehicles. It also depends on the amount of safety features you have on the vehicle. Vehicles that offer the top safety features such as an alarm or some type of anti theft system can also receive a reduced rate on insurance. Typically the more safety features on the vehicle the better the insurance quote will be. If your car does not come equipped with safety features some can be added.

Another thing that can affect the cost of a policy rate is any add-ons you have on the vehicle. Typically the more expensive the add-on the higher the insurance policy rate will be. If you have a special radio, special wheels or tires, or other upgraded features on a vehicle you often have to disclose this to insurance companies. This can affect the price to rise as features like that cause the vehicle to be more expensive. Although this does cause the rate of the policy to be higher it does cover some of those updated features should they be damaged in some type of auto accident.

Some of the other things that can affect the price of an auto insurance policy include the amount of drivers on the policy as well as the additional driver's safety history. Most car insurance companies will allow you to add more than one driver specially if you live in the same household. Many times parents will list their children or spouses will list their loved ones as a second driver. This can affect the cost of the rate. Younger or new drivers will often cause the policy rate to be much higher than normal. However this is often easier than having Insurance in their own name.

Ways To Get Lower Insurance Rates?

There are many different ways you can get a lower auto insurance rate. One of the top ways to get a lower rate is to compare a variety of different companies and plans. Although most insurance is the same each company offers their own unique features. Shopping around before you purchase one is always the best option for finding the best price. Another way to get a lower car insurance rate is to bundle your insurances. Add home and car insurance together and often companies will give a lower policy rate. Nowadays most car insurance companies do offer a variety of different types of insurance.

Another great way to have your car insurance policy rate lowered is to take a safety driving course. Safety driving courses are often recognized by many top insurance companies and they will often offer a reduced rate for completing them. Safety driving courses will teach drivers more about road safety. Another way to lower your car insurance rate is to work on having better credit. Try to establish a better credit score to help lower rates.

Different Car Insurance Companies

Nowadays there are tons of different car insurance companies. With so many companies to choose from it can often be overwhelming to find the company that works for you. By shopping and comparing the prices you can find what company works best within your budget. These are a few of the top name car insurance companies throughout the United States and the world.

Geico: Geico is one of the most popular car insurance companies there is. They are known for their very competitive rates as well as great coverage. They first opened over 80 years ago back in 1936 and still remain one of the top insurance companies in the world. They offer auto insurance as well as a variety of different insurances.

Nationwide: Nationwide is another one of the most popular car insurance companies. They were founded back in 1926 and has since been offering great car insurance policies.

Progressive: Progressive is a car insurance company that has been offering various types of car insurance since 1937. They offer very competitive rates as well as a ton of unique features and benefits.

StateFarm: State Farm is one of the oldest established auto insurance companies on the market. They begin offering Auto Insurance policies back in 1922. They offer a variety of different types of insurance and can offer drivers a very competitive price.

All-state: Allstate is an insurance company that has been offering drivers auto insurance policy since 1931. They are one of the most popular car insurance companies and offer a variety of different types of insurance.

Libert Mutual: Liberty Mutual is one of if not the oldest car auto insurance company still on the market today. They first opened over a hundred years ago in 1912 when they began offering competitive low cost insurance rates. They still offer many different policies till this day and are one of the most popular companies on the market.

Types Of Auto Insurance

There are a few different types of auto insurance to choose from when trying to choose an auto insurance policy. There is liability insurance, collision insurance, comprehensive, under or uninsured, medical coverage as well as PIP coverage. Each different type of insurance offers different features and benefits. Liability insurance protects you when you are at fault and damage another person's property. Liability comes in two different forms both bodily injury as well as property damage. Bodily injury protects you in case a person is injured when you are at fault and property damage liability protect you if you damage someone else's property and you are at fault. Liability insurance does not cover damage done to yourself or your own property if you are at fault. Most states require that you have at least liability insurance.

Collision insurance covers your vehicle in the event of damage if you are at fault for an accident. This can include paying to fix something as well as hitting another car or object. There are not many states that require you to have collision insurance however there are many situations in which you must have collision insurance. If you have a loaned or leased vehicle you may need to have collision insurance. Collision insurance helps protect your property as well as yourself should you be at fault for an accident.

Comprehensive insurance protect you in case you are at fault or another driver is at fault. Comprehensive can cover you for an accident, damage, theft as well as a variety of other things. Most other car insurance types do not offer Theft Protection. Comprehensive is often the best option as it protects you from a variety of things such as natural disasters as well as accidents.

Uninsured or underinsured insurance is for those who need a bit of extra insurance. It covers bodily injury as well as property damage. Most people get this as a supplemental insurance in case other drivers are underinsured. It is also a great way to supplement your own car insurance to ensure you are always covered.

Medical coverage is another type of car auto insurance. Medical coverage provides coverage for you as well as a passenger in the event of an accident should you need medical help. Medical coverage can cover a variety of different medical issues stemming from a car auto accident. Medical coverage is a great idea as many different insurance types do not cover medical bills.

The last type of auto insurance is PIP coverage. PIP coverage is much like medical coverage except it provides even more coverage. Drivers and passengers receive medical coverage as well as rehabilitative services. Drivers as well as passengers may also be covered from a loss of work as well as funeral expenses in the event of an auto accident. PIP coverage is a great idea to ensure the passenger as well as the driver is always fully covered.

Benefits Of Having Car Insurance

There are many different benefits to having car insurance. The most important of all is to protect you should you damage someone else or someone's property while driving. It is also important to have so you and your vehicle are also protected whether you are a false or not. It is also extremely beneficial to have Auto Insurance in case of an auto accident or you will need medical coverage. Medical coverage can be very expensive and auto insurance can help cover the cost.

Having auto insurance gives you the peace of mind you need while driving. You can always rest assured that your self and other drivers will be taken care of in the event of an accident. It is also a great idea to have car insurance as it is legally required in most States. This will stop you from incurring ticket costs and fines as well as having a run-in with the law.

Can I Have Insurance In Someone Else's Name?

In short yes you may have insurance in someone else's name but only if that person is a valid insured driver. If that person is a valid insured driver they may list you under their policy which means you can legally drive under their insurance. Some insurance companies will charge a slightly higher rate for having more than one individual on a policy. This is especially true if that individual is underage or has a bad driving history.

Does My Insurance Work In Other States?

For the most part most insurance policies do not work in other states. Unless you specifically have a policy that allows for travel most policies do not cover if you're outside of the location of where the vehicle resides. There are always exceptions and each company is different. Be sure to check with each individual company as to whether you are covered when you drive out of the vehicles state.

How To Get Car Insurance?

Nowadays car insurance is very simple to get. There are a ton of different companies and many offer online sites as well as retail locations. Simply visit a car insurance company website or call the company's phone number or stop into one of the many retail locations to discuss getting a policy. Be sure to bring all required information such as a valid driver's license, information about the vehicle, as well as your own personal information such as your social security number. You will simply fill out some information and receive a quote instantly. Once you receive a quote you can either accept or deny. If you do not accept the quote continue shopping for a better rate and if you accept it simply pay and your insurance takes immediate effect.

How To Pay For Auto Insurance?

Most companies nowadays accept payments through their online websites. It is very simple to use and often times you can use your credit card, debit card or even your bank account. Many companies will also allow you to pay at retail locations for even more convenience. Some companies may even allow you to write a personal check. Check with each individual company to see what forms of payment they accept.

Is It Better To Pay Monthly or Annually?

As a rule it is always better to pay annually. Often car insurance companies will give a reduced rate for paying the whole quote at one time. Some companies may not allow you to do monthly and only allow annually while others may not allow you to pay annually and will require you to pay monthly. It honestly all depends on the certain companies rules and regulations. Just keep in mind as a general rule it is always better to pay one lump sum then a bunch of payments as the lump sum will usually give a better discounted rate.

General Things To Keep In Mind When Shopping For Auto Insurance

There are some general basic things to keep in mind when shopping for car insurance. The first thing is to always remember that each company will give a different quote and rate. This means you should shop around before choosing one company. Another General thing to keep in mind as many companies will offer a discount or promo code just to get your business. Often times calling the company themselves and showing an interest will allow them to offer you a discounted rate. Many companies want your business and will offer a lower policy than have you go elsewhere.

Another general rule to keep in mind when looking for an auto insurance policy is to always be honest. Car insurance companies will always find out the truth anyway and it not only save time but can also save a lot of hassle. Always be upfront about any violations and always disclose any information you feel necessary.

The last thing to keep in mind when looking for auto insurance is to really compare the different types. If you drive a lot or often have passengers in the car it may be a better idea to have more coverage. It may also be a better idea to have more coverage if you are driving a leased vehicle as well as a brand new expensive vehicle. This will ensure you have enough insurance to cover any bodily injury or property damage in the event of an accident.


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