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What You Should Know About Auto Insurance

If you are new to the process of getting auto insurance quotes, then it could be very easy to end up paying more for your car insurance than you need to.  Many people that don’t understand how insurance works get caught up in the first insurance company that will approve them, or commit to the first quote they hear because they think what you see is what you get.  When it comes to auto insurance, this is simply not the case. You are more in control of your policy than you may think.  Here we will cover some basics and inside tips on what you need to know before you compare auto insurance quotes.

Every driver in America is required to carry what is called third party liability insurance on their car.  This insurance will cover any other parties in the event of a collision for which you are found to be at fault.  You MUST carry liability insurance as an absolute minimum, and there is no way to go around this cost.

Other kinds of insurance coverages include comprehensive and collision insurance.  Check with your state requirements, as not all states require these insurance coverages.  If your state does not require them, you may not need them, but this is where the make and model of your vehicle will play a role.

Collision insurance is designed to protect you against financial loss in the event of an accident for which you are found at fault.  If you are in an accident that is  your fault, your liability insurance will cover the other party, and your collision insurance will cover you.  If you have an older car that will be expensive to replace or repair, your collision insurance may be a cost that is prohibitive to you, because often times an insurance company will write off the loss of a car in a collision if it is too old to repair or replace.  If you have an older car but still require collision insurance in your state, you can place a deductible on your insurance policy for collision coverage and still reduce your auto insurance quotes.

Comprehensive insurance works the same way, but covers you against financial loss in the event that some other issue such as vandalism or an act of Mother Nature causes loss or damage to your vehicle. Again, if you have an older car that gets destroyed by a storm, vandalism, or theft, your insurance company may just write off the vehicle and the replacement value will be minimal.  Once again, you can put a deductible on your policy that will both reduce your costs and still give you the insurance coverage you need.

When it comes to auto insurance, you are more in control of your costs than insurance companies would like you to think.  Knowing what you need and how to lower those variables that raise your rates will be invaluable tools to getting cheap auto insurance quotes.
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