The Ins and Outs of Auto Insurance


Second to our homes, autos are one of the biggest investments that we make in our lives. Cars are the sole livelihood of all types of people; no matter whether you drive a Jag or a Junker, it is important to protect your investment and your livelihood with auto insurance.

At its most basic, auto insurance comes in a few categories; cheap insurance has to do with liability and property damage only, and it does not include coverage for the policy holder’s vehicle in the case of an accident or other covered occurrence. If you finance your car, usually your financing company will not allow you to have this basic, cheap liability only coverage. If something should happen to the car before it is paid off, your lender risks losing out on the money that they lent for the purchase of the vehicle. For this reason, when you get financing for a car and take it off of the lot, they insist that you have  full insurance coverage before being able to do so, to protect their investment.

Anybody who has ever been in an accident and had full insurance coverage knows that full coverage is the best protection you have against the inevitable; whether damage is caused to your vehicle or the property or body of another person. Collision coverage provides insurance coverage if you get into an accident and damage is caused to your car, as the basic policy provides coverage for only the property of the other party.

Auto insurance rates can be rather cheap or rather expensive, depending on your driving record, the type of car you drive and as of late even  your credit score can affect your auto insurance rates. If you have a poor driving record, numerous speeding tickets, and you drive a late model sports car you are going to have a great deal more to pay in insurance premium than a person who has a clean record and an older model Oldsmobile. Full coverage, collision coverage, liability and other parts of the insurance policy all add up to the insurance premium, which is split up into monthly payments or a lump sum; usually the lump sum is cheaper than the sum of the payments would be.

Also, in most areas of the United States having auto insurance is the law; it is one of those things that must be added into the monthly budget, and it may sometimes feel like you are doubling your car payment. However, there is no better protection against loss and liability that comes from being the owner of a car than buying good auto insurance, and keeping up on the payments. If you have a high premium, keeping up on your auto insurance payments is a great way to get things lowered after a set period of time, and there are plenty of auto insurance companies to choose from; open your phone book and take a pick!