Car Insurance FAQs - How to Buy Car Insurance

Car Insurance FAQs - How to Buy Car Insurance
By Amy Danise

From lowering your premiums to adding a teen driver to your policy, buying car insurance can be a confusing, overwhelming, and expensive process. However, it is a necessary part of life, and can save you a lot of stress and money in the future. It may seem like a daunting task, but there is an easier way to shop for car insurance quotes and rates. Before shopping for car insurance, read these frequently asked questions to ensure you get the best possible car insurance rate.


Q: Am I required to have car insurance?


A: Almost every state requires that you carry liability car insurance, which pays when you do damage to others. States that require liability car insurance each set minimum limits that you must have; even in states that don't require car insurance, you must show proof of financial responsibility, meaning evidence that you can pay for any damage you cause.


Buying collision and comprehensive car insurance, and other optional coverage to protect yourself financially, is your own choice.


Q: Do I need to buy car insurance before I buy a new car?


A: If this is your first car and you don't already have car insurance, you'll need it before you drive the car off the lot. In addition, if you're financing the vehicle, your lender will likely require you to have insurance at the time of the purchase.


If you have car insurance and you're replacing your car, you generally have 14 to 30 days to notify your car insurance company of the purchase. Your car insurance rate will then be adjusted based on the new vehicle model. Make sure you inform your car insurance company about the new car within the appropriate window, or you could be driving without coverage.

If you're adding a new car, rules vary by car insurance company. For example, some car insurers provide automatic coverage for the additional car, but you must still notify them within 30 days, while other car insurers provide no automatic coverage for additional cars.

Q: How can I lower my car insurance rates

A: First, comparison shop for car insurance quotes to make sure you're not overpaying. Then, always make sure you are getting all the discounts to which you're entitled.

When you're shopping for a new car, you can ask your insurer how much your car insurance rates will go up or down based on the vehicles you're considering. For example, vehicles with high theft rates will cost more to insure.

There are other ways to reduce car insurance rates, although you'll increase your potential financial risk. For example, you can increase your deductibles if you can pay more out-of-pocket in the event of an accident. And on older cars you might consider dropping collision or comprehensive coverage if repair costs will likely exceed the value of the car.

It's generally not a good idea to save money by reducing your liability limits to your state minimums - that opens you up to substantial financial risk.

Q: How can I lower my car insurance rates for my teen driver?

A: First, don't rush out to add your child to your policy when he/she is just starting to learn; you may be able to wait until he has his permanent license, which buys you some time before you start paying car insurance premiums on your teenager.

Second, find out if there are discounts your teen may be able to get, such as a "good grades" discount.

Third, consider buying an older, low-profile car for your teen to drive that will be less expensive to insure.

Most importantly, your teen driver needs to keep a clean record and follow any "graduated licensing" laws in your state; a teen with an accident record is an expensive proposition, no matter how much you comparison shop for a car insurance quote.

Shopping for car insurance can be much easier for you with the advice and tips above. Car insurance companies provide you with a very valuable service, but that doesn't mean you should have to pay top dollar. Comparing rel=nofollow car insurance rates can be time-consuming, but it will save you a lot of money in the future.

for a comprehensive array of comparative auto, life and health quotes, including a vast library of originally authored insurance articles. Insure.com is dedicated to providing impartial insurance information to consumers. Visitors can obtain instant quotes from more than 200 leading insurers, achieve maximum savings and have the freedom to buy from any company shown Car Insurance FAQs - How to Buy Car Insurance

Car Insurance For Women - Fact Vs Myth

By Ara Rubyan 
It is a misconception that women drivers are not as reliable or as safe their male counterparts. If you have any doubt about that, just ask the insurance industry. They are in the business of reducing their risk and increasing their profits. And in the real world, this means acknowledging the reality that women are better drivers than men as measured by nearly every metric you can imagine.

Insurance companies have historically used demographic data (e.g., the gender and age of those drivers involved in accidents) as part of their formula in calculating insurance rates. Everything else being equal, those demographic groups that have a higher incidence of accidents while driving will cause rates to go up for everyone in that group. And the facts show that women are safer drivers than men.

A recent Carnegie-Mellon study concluded that men are two times more likely to be involved in a traffic fatality than women. Further evidence from the insurance industry revealed that while 68% of women have no traffic violations, men who have never received a traffic violation is only 64%. An additional finding from the study was about the amount of multiple violations for each gender. The study found that that men, as a group, are more likely to have received multiple citations than women -- by a factor of 10%.

As an attempt to acknowledge these differences between men and women, several insurance providers cater specifically to insuring women drivers, guaranteeing that women pay a lower rate than men. These insurance companies have set up special individual companies to provide and underwrite car insurance for women only.

In short, the insurance industry has discovered that young men are actually the highest risk group among all drivers.

Finding out how you fare in comparison to other types of drivers is easy by getting a free online quote from any insurance provider. Bottom line: You'll find that (all things equal) car insurance for women is usually cheaper than the same coverage for men.

Of course, the insurance industry looks at more than just gender when deciding your premium. That said, the general perception that women are worse drivers than men is something that is not supported by the facts.

For more info on [http://autoinsurancemoneysaver.com/29/car-insurance-for-women/]car insurance for women, visit Ara Rubyan's [http://autoinsurancemoneysaver.com/]Auto Insurance Money Saver blog.

Ara Rubyan is like you: a consumer who has tried to educate himself on the full range of auto insurance options today. Now, he's put all his research (so far) in one convenient location and he's sharing it with you, no strings attached. Visit his website. You'll find:

Lots of articles on various auto insurance topics;
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Latest news on auto insurance resources;

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Go on over to Auto Insurance Money Savers and have a look.

Article Source: Car Insurance For Women - Fact Vs Myth