Auto Insurance: Basics on Auto Insurance and Finding the Best Auto Insurance Rates

auto-insurance-basics-on-auto-insurance-and-finding-the-best-auto-insurance-ratesIf you have a vehicle, automobile insurance is a must as well as legally registering it in the state of residency. Auto insurance provides insurance protection that will pay for losses due to damage to your vehicle.

Looking for Auto Insurance? Find Auto Insurance Companies Offering Auto Insurance Coverage in Your Zip Code Here: Auto Insurance

Auto Insurance Basics

You pay an insurance premium for an auto insurance policy. How much you pay will depend on where you live, the type of auto you are insuring, your age and the amount of auto insurance coverage you wish to have. Getting auto insurance coverage for a new driver, like a teenage driver, will be more costly since accident rates are higher with younger, inexperienced drivers.

For the auto insurance premium you pay, the insurance company agrees to pay certain expenses and legal liabilities if you're involved in an accident or if you damage another vehicle. How much is paid also depends on the terms of your insurance policy.

There are several different types of auto insurance, including collision insurance, which will pay for damage to your automobile if you are in an accident involving another car or object, including damage created by potholes.

Collision insurance will not pay for damage from a flood or cover theft. For more complete coverage, you may want to get comprehensive insurance which picks up where collision leaves off, including loss due to theft or damage caused by fire, falling objects, missiles (yes, missiles), explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.  Each policy differs, so all specifics must be clarified when you determine what policy best suits your needs.

If you have financed your auto, the bank holding the lien will require you to have a certain level of auto insurance coverage to protect their interests.

Find Auto Insurance Companies offering coverage in your area here. Best Auto Insurance Rates

Author: Jason P. Jones
October 7th, 2009