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What Is Car Insurance?

This may seem like a silly question to some people, however car insurance prices and options can vary by company and it is good to know the ins and outs before purchasing a car insurance policy.

It is law to have car insurance if driving a vehicle. Car insurance protects not only you but also your vehicle from damage, theft and collisions. If you have an accident while driving your vehicle where you are found at fault, you will have to pay the full cost of damage to your vehicle as well as any other vehicles that may be involved as well as costs for injury to people. Without car insurance you could likely not be able to pay the full amount and may be sued. By paying car insurance premiums monthly or yearly, the car insurance company will cover you for all costs and you will only have to pay a deductible. This is the difference between a bit of an annoyance and total financial ruin. It is that important!

Your car insurance rates will depend on a number of factors starting with your age, driving history and experience as well as the type of car you are driving. Vehicles get classified into car insurance groups. These groups will help determine the cost of your car insurance. Car insurance groups are based on these factors:

• Damage and parts costs
The likelihood of damage and cost of parts for repair. The lower the costs, the better chance of a lower group rating.

• Repair costs and times
The longer the repair time, the higher the cost. Higher cost equals higher group rating.

• New car values
Price is important especially for cost of replacement and repair.

• Body shells and accident repairs
How available is the basic frame of the car? This is important for certain damage repairs.

• Car performance
Statistics show that high acceleration and top speed cars result in more frequent insurance claims.

• Car security
Good security features help reduce the risk of the car being stolen or vandalized. This can help reduce insurance claims cost and therefore put the car in a lower group.

When purchasing new car insurance the best idea is to do a little comparison shopping online. It is fast and simple to get free online quotes from different car insurance companies so that you can find the right policy for you at the right price. Most companies will offer at least a 10% discount for buying your auto insurance online as well. Having car insurance is the law in order to drive a vehicle so you may as well put in a small amount of time to find the right car insurance company that will take care of you and your vehicle properly.

For more Information: Car Insurance