Car Insurance Facts

Before you get a car insurance quote, you should know a few things about car insurance first. Here are some facts about car insurance that every policyholder should know.

You May Need Certain Coverages to Drive Legally

Most states require certain levels of bodily injury and property damage liability coverage to drive legally. If you fail to meet these mandatory coverage requirements, you could face hefty fines, the suspension of your vehicle registration, or even the revocation of your driver's license. Thus, it's important to take into account your state's mandatory insurance requirements when you get a car insurance quote.

Car Insurance Applies to More than Just Cars

You might think that because you don't drive a car per se, that you don't need to apply for a car insurance quote on a policy. However, most states require that you insure any motor vehicle that is operated on their roadways. This includes golf carts, mopeds, and motorcycles. If you drive one of these alternative vehicles, you should still apply for a car insurance quote.

Which Company You Choose Matters

Another legal requirement most states have is that your insurance company must be authorized to do business in your state. In other words, you can only obtain a car insurance quote from a company that has a license to operate in your state of residence. You can find out whether a company is authorized to do business in your state by checking the state's department of insurance website.

As Your Deductibles Go Up, Your Premiums Go Down

When you get a car insurance quote, it's a good idea to remember that the higher your deductibles are, the lower your premiums will be. Thus, you will minimize your car insurance quote by maximizing your deductibles. Deductibles are the portion of the damages for which you are financially responsible when you make a claim. You should set your deductibles as high as you could comfortably pay out-of-pocket in the event of an accident.

You Don't Need Every Coverage Offered

As you get your car insurance quote, keep in mind that you might not need every coverage offered by your insurer. For example, drivers who own a vehicle with little to no cash value do not have to include collision coverage when getting a car insurance quote. Likewise, if you have a solid health insurance plan, you probably don't need medical payments coverage.

If you are still curious about car insurance and have unanswered questions, have a look through some of the answers to frequently asked questions.