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Whether you are just buying your first car or are looking to change insurance companies, you may have some questions about your car insurance.  Here are some car insurance facts to point you in the right direction.

There are three basic kinds of car insurance:

• Comprehensive: This pays for any damage to your car from vandalism or theft and even fire and water damage.  If you have paid off your car loan you may be able to drop your comprehensive coverage, especially if the Blue Book value of your car is less than $5,000.

• Collision: If you have a car loan, you are required to have this kind of insurance.  This kind of insurance will pay for car repairs if you are in an accident.

• Liability: This kind of coverage is required in most states.  It will pay for damage to another person’s property that may occur as a result of a car accident, as well as third-party personal injury and death-related claims.

There are also optional types of car insurance, if you feel you might need some extra coverage.  These include:

• Medical payments and personal injury protection, which covers the cost of medical bills for passengers and the policyholder.

• Uninsured or underinsured motorist, which provides additional coverage in case you are involved in an accident with someone who doesn’t have insurance.

• Gap coverage, which will make up the difference between what you paid for the car and what insurance pays if something catastrophic happens to the car.

• Full tort or limited tort coverage means that you save some money on your insurance bill, but you agree not to sue after an accident.

For more information on car insurance, check out this article about insurance Myths and Misconceptions.  If you have more questions or would like to get a quote, make sure you speak to someone who knows auto insurance in Austin.

In the United States of America, auto insurance is required for any vehicle that is registered with the department of motor vehicle. Although the requirements vary with each state, there are still some universal mandatory policies that must be purchased for all motor vehicles. The goal of any auto insurance is to protect the driver and passenger of a vehicle as well as other people that may be involved in a car accident. Additionally, auto insurance provides protection for the damages that are done to someone’s property. Auto insurance in the state of Delaware is an example of a location with strict regulations regarding motor vehicle insurance.

Every insurance policy provides a certain amount of money that can cover injuries as a result of a car accident. For example, an insurance company may pay up to $50,000 per person involved in a car crash. Similarly, car insurance can also provide coverage against damage that results from uninsured motorists. Such a policy is also useful for hit and run situations that involve someone striking a car and then driving off.

Auto insurance companies use a point system to evaluate the monthly premiums for a customer. A driver with a good record without any major traffic violations can receive fair rates on the monthly bill for car insurance. Defensive driving courses can also be applied towards reducing the cost of auto insurance premiums. Safety features such as antilock brakes and daytime running lights can also be used for car insurance reduction.

Car owners face a myriad of concerns and questions concerning their insurance policies. New as well as experienced owners often try to find answers but face confusing industry terms that only create more confusion. Being aware of the right information can significantly reduce the stress related to this issue.

Should I Contact An Agent If A Minor Accident Occurs?
Drivers should contact their insurance company even if the accident features little to no damage. If may not be considered a top priority over serious accidents but it is important to inform insurers about the event. If another vehicle is involved, always remember to exchange information with the other driver should further problems occur due to the accident.

Does My Previous Driving Record Affect Coverage?
Insurance companies carefully review driving records before accepting a new policyholder. Good records with no incidents are viewed more favorably and customers are allowed to modify sections of their coverage. Any driver with a serious history of infractions could face a complete denial. Those who do receive a policy could face strict terms and conditions. They will also face much higher rates that could decrease if they work towards creating a safer record.

Can I Drive Without Insurance?
Many car owners think that auto insurance is not a requirement. In a majority of states, laws are in place that require every driver to have a policy with minimum amounts of coverage. State insurance agencies have the most up to date information about current regulations in place. Their websites feature detailed contact information for additional questions.

Are Used Vehicles Less Expensive To Insure?
Used vehicles carry their own set of standards that each company must evaluate. Most guidelines closely match those of new vehicles in the same category such as a safety features. The latest advances available on current vehicles offer insurers more security which could mean lower rates. Any used models closely matching those requirements should also see a favorable premium over time. Visitors to cashclunkers.com know the great selection of choices that come with a low rate for insurance coverage.

Does The Age Of A Driver Matter?
Companies are very concerned about younger drivers as well as older drivers. These two categories contribute to a great deal of accidents each year. For that reason, insurers will often impose high rates to cover the higher possibility that a claim will be filed. According to the Los Angeles Times, “Each insurer devises its own set of parameters to predict risk.” (URL: http://articles.latimes.com/2011/may/22/business/la-fi-perfin-20110522) Older drivers may also be subject to yearly exams that cover issues such as quality of vision. Policies may be dropped if someone fails to give correct facts or information concerning their health.

Auto insurance is something that every driver must have. It can be a confusing subject that creates many questions for any car owner. Knowing the answer to important coverage questions can mean the difference between a great rate with the right amount of coverage and paying too much for a policy.