Vehicle insurance (also known as auto insurance, GAP insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and posibly damage to the vehicle, sustained from things other than traffic collisions.
Car insurance is expensive, but it is one expense you cannot overlook if you own a car. Driving without insurance is illegal in every state, and doing so will cause you to face strict penalties and even lose your license if you are involved in a crash. However, you can lower the cost of your car insurance with careful shopping and these simple tips.
First, consider purchasing only the minimally required insurance. This is liability insurance in most states. Other coverage options, such as collision and comprehensive coverage, may not be worth the cost if you are driving an old vehicle that has very little value. Also, look at the amount of coverage you have. Most states only require you to have coverage up to a set minimum. Keep in mind, however, that if you cause an accident that causes more damage than your insurance will pay, you will probably be sued for the balance. Try to choose an amount of coverage that would cover most accidents but does not increase the cost of your coverage tremendously.
Another way to lower the cost of your car insurance is to insure your car using the same provider that handles your other insurance products, such as your life insurance and homeowner's insurance. Most providers offer discounts for multiple products. Be sure to ask about this when you call your provider with your other car insurance questions.
If you have a good driving record, you can get a lowered rate. You may need to ask about "safe driver" discounts, but make sure you have them applied to your policy. Many insurance providers will send bonus checks to their drivers for going a certain number of months without a claim.
If you are insuring a car that you rarely drive, ask about low mileage discounts. Since the car is rarely driven, there is little likelihood that it will be involved in a crash, so your insurance provider will likely offer you a discounted rate on your policy.
You can also get discounts for the safety features on your car. For instance, anti-lock breaks, airbags, and stability control systems are all features that make it less likely for you to be hurt in a crash. Ask for discounts for these items, if your car has them. Also, anti-theft devices that you might put on your car after you buy it could earn you a discount, so be sure to mention them to your insurance provider when you are asking your auto insurance questions.
