Auto Insurance Basics

Many of us never think about auto insurance. We’re conditioned to buy auto insurance as we’re conditioned to pay our water bill. However, there are some that don’t feel that the expense of auto insurance is necessary. Consider the scenario of a motorist without auto insurance. She’s at fault for a car accident and is unable to work. She’s liable for her own medical bills, the other party’s bills, and for property damage. Without auto insurance, all the money comes out of her pocket. Unless your last name is Trump or Gates, auto insurance is a must. Auto insurance premiums can be expensive, going into the thousands of dollars per year.


One way to make auto insurance affordable is to see if the auto insurance company can break up your premium into monthly payments. Normally, you would fork over an initial down payment, and then pay your auto insurance premium over several months. Be aware, though, that some auto insurance companies will charge an extra fee for that service. If at all possible, pay your auto insurance premiums at least semi-annually. One way to lower your auto insurance premium is to reduce your coverage to the state minimums. Your monthly auto insurance payment can be as low as $20 per month. This is not the best strategy, however. Having the minimum auto insurance coverage is almost like having no coverage at all.


One of the best ways to pay lower premiums for auto insurance is to take advantage of as many discounts for which you qualify. There are discounts for save driving. If you’ve never been in an auto accident or have never been caught with a moving violation, you should qualify for safe driver discounts. Your age can factor in to your auto insurance premiums as well. If you’re between the ages of 16 and 25, you will have to pay higher auto insurance premiums anyway. Once you hit the magical age of 25, or you get married, your auto insurance premiums will go down. The auto insurance deductible you choose can also affect your auto insurance premiums.


The higher your deductible, the lower your auto insurance premium. Finally, always compare auto insurance rates among different auto insurance companies. Even for identical coverage, auto insurance premiums can vary widely between auto insurance companies. There are many websites that will compare auto insurance rates for you. Check with these websites, as well as your local auto insurance agents for the best auto insurance deals.

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