CAR INSURANCE  

You really do need it

While in many states, you cannot drive without car insurance, the main purpose of auto insurance is protection against large financial loss while owning or operating a car.  A car insurance policy can protect you from a variety of associated risks. Each type of risk equals a specific type of coverage; each with its own premium. The sum of all these smaller premiums is the total premium for your policy.    

  While you may not control whether or not you have to have insurance, you do have a great deal of control over your premiums. You can alter the amounts of coverage as well as the deductibles.  Generally, the lower the coverage, the lower the premium; however, premiums do not increase in proportion to the increase in coverage. The premium-coverage trade-off is important. Your first goal is to ensure that you are adequately protected. Your second goal is to find a policy that provides the necessary protection at the lowest auto insurance rate.

Since your automobile insurance premium is a major budget expenditure, you should consider the insurance costs before buying a car. Different car models have different claims records. A car with a good claims record can earn you a significant discount on insurance coverage. Understandably, high-performance sports cars and sport utility vehicles are naturals for high premiums, whereas sedans and "family" cars usually have lower premiums. Also, "safe" cars are sure bets for lower premiums. Safety features such as antilock brakes and air bags cost money, but they may help reduce your insurance premium.

Car insurance is expensive and has been getting more expensive each year. The rapid increases in the costs of medical care, as well as the increase in personal-injury lawsuits, have contributed to this rise.  So a careful comparison of companies and knowing the basics can save you money.  Take advantage of free online quotes for comparison shopping.