Enter your ZIP code:

Auto Insurance Basics That Save

by Penny M. Hagerman

 

Buying auto insurance is a little like ordering a gourmet hamburger: once you've got the "guts" of it, anything else layered on top is simply extra.

Food aside, most people purchase the bare minimum in insurance protection for their automobiles. But what they don't know about their auto policy could cost them.

Not only can they end up without additional "toppings" that could spare them later distress, pain and expense; they could also end up forking out a lot of money on auto repair and medical bills unnecessarily.

 

Did You Know?

 

One of the best ways to save money on auto insurance is to compare policies side by side.

But before doing so, it's wise to have some automobile insurance basics under the belt. This builds a solid foundation of knowledge that helps ensure the right auto policy at the right price.

Consider these important facts:

  • Every state requires drivers to carry vehicle insurance. Foregoing auto protection could result in license suspension or revocation, costly fines, high insurance costs, and even confiscation of personal assets if an at-fault auto accident occurs and someone gets hurt.
  • The insurance policy follows the automobile—not the driver. If someone else borrows the vehicle and causes an accident, the auto policy in effect on the offending vehicle is the one that pays out—and high auto insurance rates may result.
  • Items left in the auto often aren't covered under a traditional car insurance policy. Instead, those items may be compensated for under a renter's or homeowners policy, if one is in effect. Before deciding on an automobile policy, talk to a licensed auto agent, who can help determine the coverage needed for those types of items in case of theft.
  • Some auto insurance companies offer "accident forgiveness" that could keep rates from skyrocketing in case of accident. Ask an agent about this type of automotive plan, which usually allows  one or two accidents before hiking automotive rates.
  • Excessive driving raises vehicle insurance rates. Insurers base the price of auto premiums partially on the number of miles driven annually. So it just makes sense that those who drive more pay more. To keep auto mileage low, take advantage of other means of transportation available—or walk whenever possible—to keep insurance rates low.
  • It's usually not wise to make small auto claims. Though doing so may help get damages repaired, it may also cause auto premiums to rise more than the cost of those repairs. Instead, set up a savings account which can be used  for just such incidences.
  • It's cheaper to insure multiple automobiles under the same policy than under separate plans. Bundling cars together earns the insured a discount, and helps save money on the right auto insurance plan.
  • Some companies offer military personnel discounts. For maximum savings, let the insurer know before shipping out both the return date and where the automobile will be parked or stored during the tenure.

With a clear understanding of principles like these, it's easy to compare insurance policies; choose the plan that best protects automobile, driver and others on the road, and save money over the life of the policy.

 

Auto Insurance that Fits

 

Whether buying just the basics or topping them off with extras, the first step to saving money on auto insurance is understanding the basics. Once you've got that down, request your free auto insurance quotes for the right coverage that fits.

List of Articles
No. Subject Author Views
85 Rental Car Insurance: Do You Really Need It? youcomparequotes 17708
84 Auto Insurance: The Secret Weapon for Saving at the Pump youcomparequotes 18032
83 Getting the Cheapest Car Insurance in Your State youcomparequotes 16982
82 Play It Safe for Cheap Truck Insurance Rates youcomparequotes 17526
81 How to Get Discount Auto Insurance youcomparequotes 17785
80 Insurance for Van Lovers youcomparequotes 17530
79 Car Insurance That Fits Your Needs youcomparequotes 17184
78 Online Car Insurance Quotes in 5 Easy Steps youcomparequotes 17371
77 Getting Insured with an Online Auto Insurance Quote youcomparequotes 18387
76 Home and Auto Insurance: Sure-Fire Protection in Unsure Times youcomparequotes 17186
75 How to Keep Teen Car Insurance Quotes at Bay youcomparequotes 19427
74 Choosing Cheap Online Car Insurance That Fits Your Life youcomparequotes 17772
73 Auto Insurance from InsureMe youcomparequotes 17687
72 Car Insurance Comparisons Save You Time & Hassle youcomparequotes 18053
71 Car Insurance Companies & InsureMe Save You Money youcomparequotes 18443
70 Buying and Insuring a New Car youcomparequotes 16805
69 Compare Auto Insurance Rates youcomparequotes 17133
68 Safety Measures Lower Auto Insurance Quotes youcomparequotes 16639
67 Getting Car Insurance Quotes, from Beginning to End youcomparequotes 16732
66 The Car Insurance Quote & Ratings Factors youcomparequotes 17191
65 What's Behind Your Auto Insurance Quotes? youcomparequotes 17301
64 How Cheap Car Insurance Can Save You Money youcomparequotes 16646
63 How to Reduce Car Insurance Prices youcomparequotes 17178
62 Getting Insured with Free Car Insurance Quotes youcomparequotes 17372
61 Auto Owners Insurance & Costly Driving Mistakes youcomparequotes 16688
60 Auto Insurance Cost & Your Ride youcomparequotes 17184
59 How No Fault Auto Insurance Works--or Doesn't youcomparequotes 16960
58 How to Get the Cheapest Car Insurance youcomparequotes 16868
57 Selecting a Car Insurance Company youcomparequotes 17567
56 Finding New Car Insurance Following Cancellation or Nonrenewal youcomparequotes 17176
55 Get the Best Car Insurance Rates Around youcomparequotes 17417
54 Factors That Affect Your Car Insurance Quotes youcomparequotes 16454
53 Child Safety Belts Keep Kids Safe youcomparequotes 17120
52 Speeding and Car Insurance Rates youcomparequotes 16822
51 Not At Fault Car Insurance & Accidents youcomparequotes 16959
50 State Auto Insurance Becoming Available youcomparequotes 17445
49 Auto Insurance Gap Narrowed by Insurance youcomparequotes 17698
48 Car Insurance & Roommates or Family Members youcomparequotes 17271
47 PIP and No-Fault Auto Insurance Reform youcomparequotes 16969
46 PIP and No-Fault Auto Insurance Reform youcomparequotes 16873
45 SUVs: Minor Collision, Major Damage youcomparequotes 17424
44 Severe Weather Driving Tips youcomparequotes 17201
43 Avoiding Aggressive Drivers youcomparequotes 18063
42 Safety Tips & Car Insurance for Teens youcomparequotes 17117
41 Insurance for Cars: It's Your Choice youcomparequotes 17074
40 Car Insurance Quotes Save You Money youcomparequotes 17136
39 Finding & Comparing Auto Insurance Specialists youcomparequotes 18011
38 Safety Features Save Lives & Money youcomparequotes 16897
37 Curbing Auto Insurance Prices youcomparequotes 16438
36 Teen Auto Insurance youcomparequotes 16721
35 Car Insurance: Your Questions Answered youcomparequotes 16773
34 How to Buy Car Insurance youcomparequotes 17409
33 Vehicle Insurance: Covering Any Kind of Car youcomparequotes 16688
32 Truck Insurance for Your Pride & Joy youcomparequotes 16476
31 How Insuring a Used Car Can Save You Money youcomparequotes 17504
30 All-in-One Policies Insure Car & Home Together youcomparequotes 17321
29 Credit Scores & Car Insurance youcomparequotes 17914
28 Classic Car Insurance Protects Your Relic Ride youcomparequotes 16718
27 Reducing SUV Insurance Rates youcomparequotes 16859
26 Good Driver Car Insurance Rewards Safe Driving youcomparequotes 17376
25 How to File an Auto Insurance Claim youcomparequotes 17014
24 Avoiding Deer Collisions While Driving youcomparequotes 17481
23 Cheap Auto Insurance through Safe Driving youcomparequotes 16833
» Auto Insurance Basics That Save youcomparequotes 17238
21 It's Official - Men Are Terrible Drivers youcomparequotes 18742
20 Car Insurance Quote Saves Money and Stretches Income youcomparequotes 17490
19 Auto Insurance Quote Heavily Dependent on Driver Behavior youcomparequotes 17014
18 Car Insurance Quotes Separate Fact from Fiction youcomparequotes 17274
17 How What You Drive Affects Your Auto Insurance Quotes youcomparequotes 17047
16 Cheaper Car Insurance in 8 Easy Steps youcomparequotes 17398
15 Save Hundreds on Your Car Insurance Without Switching to Geico youcomparequotes 16887
14 Your Options in Motorcycle Insurance youcomparequotes 16863
13 The Advantages of RV Insurance youcomparequotes 17236
12 Enjoying the Classics: How to Insure Your Old Relic youcomparequotes 34743
11 Insuring Your Teen Driver youcomparequotes 17009
10 The SR22 & Car Insurance youcomparequotes 16492
9 Auto Insurance & Generic Parts youcomparequotes 17200
8 A Trip Gone Wrong: Summer Breakdown on the Road youcomparequotes 18335
7 Drowsy Drivers, Wake Up! youcomparequotes 16499
6 Cheap Car Insurance Protection You Deserve youcomparequotes 17876
5 Top 8 Safety Picks for Car Insurance Discounts youcomparequotes 17304
4 Drivers: 7 Important Facts about Texting That Could Save Your Life youcomparequotes 21402
3 Buckles: Use Them for Safety, Not for Show youcomparequotes 16805
2 Auto Insurance Quotes youcomparequotes 17268
1 Why You Should Give Thanks -- And Stay Home This Year youcomparequotes 17487
XE Login