Most days, you do not have to think about car insurance. It is just something you have for those “just in case” times. When you do need it, though, you don’t want to wonder what type of policy you have. Insurance is complex. Many people have misconceptions about what it is and how it works. Keeping this in mind, realize that you should know everything about your policy to avoid situations when you thought you were protected and really were not.
The following are the five most common misconceptions about car insurance.

1. I thought my policy covered all damage! If you do not have comprehensive auto insurance coverage, you could be paying for more than you think. If you have just basic coverage to keep you legal, your policy will not cover your damage, but just the costs associated with the other driver.
2. Don’t I get a rental car? If you do have comprehensive coverage, know what your policy includes and what it does not. Rental car reimbursement is not always a part of the plan. In many cases, this is a special add on to an insurance policy, not a given.
3. If I wreck the car, I’ll get my money back. Don’t plan to wreck your car and don’t plan on getting all of your money back in terms of what you paid for the vehicle. Depreciation plays a big factor in car insurance. Fair market value of the vehicle at the time of the accident determines what you will receive in the case of a covered accident in which the vehicle is totaled.
4. It was not my fault! Fault is not something that insurance companies or the police decide on too quickly. It is something that needs careful consideration. The determining factors over fault involve the facts and evidence in the case. Your insurance company will determine fault based on these details.
5. My insurance company doesn’t want to help me. Most insurance agents are more than willing to help you to get the money you are owed if you are involved in an accident. They are not trying to downgrade the value of the accident, in most cases. Rather, these agents know the most important factor is keeping you as a client long term.

Car insurance does not have to be expensive, either. You can buy an affordable policy just by comparing the options available to you and choosing a policy that fits your actual needs. Most importantly, spend some extra time reading through that policy before you agree to it!

According to new research, insurance prices vary drastically between drivers with a good driving record and those with a tarnished one. The cost difference can be as much as $3,000 a year depending on which auto insurance company you’re using. A Chicago-based insurance resource company did the research to find out how much a bad driving record will really cost you.

The company says they created three driver profiles using made up people. All of them were 21-years-old, driving 2009 Mustangs and living in Palatine, Illinois. Each of the fictitious drivers had the same five to six year history. The only difference between them was their driving record. “Everything else about the drivers’ profiles was as identical as possible using the various online applications of six major auto insurance companies,” David Thompson, President and CEO of E-Insure Services, said in a news release. “Good Driver had no moving violations and no accidents, Bad Driver reported a couple of accidents, and Drunk Driver had a DUI conviction.”

The best driver of the bunch was able to get insurance rates as low as about $90 a month. The bad driver received quotes ranging from $166.22 to $238.05. And finally, a drunk driver was given a wide range of quotes. “One carrier wouldn’t insure Drunk Driver at all. Another wanted $347.86 per month. And a third gave Drunk Driver the low quote of $95 a month, almost as low as Good Driver’s lowest car insurance quote ,” said Thompson in the news release.

Even the company conducting the research says the broad range in quotes is surprising. “Car insurance companies look at a number of factors besides driving records to determine premiums. The miles you drive, your vehicle and its safety rating, even your credit score come into play. That’s why it really pays to get at least three competitive auto insurance quotes before you commit,” said Thompson in the news release. Thompson says most drivers can expect to pay about six percent more this year for author insurance compared to last year.

In order to save money, experts say it’s important to take advantage of anti-theft discounts, multi-car policies, and enlisting the same company for multiple insurance products. Thompson offered up other options for cutting costs, “Pay annually instead of monthly. Pay online at the insurer’s website. You should also review your auto insurance at least once a year and review your coverage options.”

Want to pay less for car insurance? Just ask, says US News and World Report. While there’s nothing new about car insurance discounts, many people still forget to ask about them. According to US News and World Report, here are the top six insurance discounts that you may want to inquire about.

1. Multi-Policy and Multi-Vehicle Discounts. Do you purchase many of your insurance products from the same place? You should be rewarded for that. Same goes with car insurance when you have multiple vehicles insured at one company.

2. Low-Mileage Discounts. Not all providers offer this according to US News and World Report, but you should definitely ask. You can save up to 40 percent they say.

3. Good Driver Discounts. It doesn’t seem right that accident prone drivers pay the same as cautious ones. Some insurance companies will reward you for your good record.

4. Vehicle Safety Features. Things like a car alarm, anti-lock brakes and airbags can all add up to savings. Be sure to let your insurance company know if you have these features.

5. Affinity Groups. Your HR department or an organization you belong to may be the source of more insurance savings. Ask around to see if your group affiliations can lead to discounts.

6. Hybrid Cars. These fuel-efficient cars are also good for saving money on insurance, according to US News and World Report.

Ever wonder how your state stacks up when it comes to auto insurance rates? A new survey from commission by Insure.com ranks every state by the average premium paid by residents. Turns out if you live in Louisiana you’ll pay the most. If you live in Vermont you’ll pay the least. And if you live in Pennsylvania you’ll pay darn close to the national average of $1,429.26.

19

58%%

90%%

122%%

130%%

154%%

170%%

186%%

194%%

230%%

246%%

262%%

270%%

294%%

310%%

326%%

334%%

358%%

374%%

390%%

398%%

422%%

The survey collected insurance rates from more than 2,400 vehicles based on ten zip codes for each state. Customers from six insurance carriers were included.

Did you know that your credit score can impact what your insurance company charges you? Many companies review your credit report to determine the rate you’ll pay. If your less-than-perfect credit is causing you to pay more for car insurance, here are some steps to take.

Review Your Credit Report: Make sure your credit report is accurate. Every consumers in the US is allowed free access to their credit report every twelve months from each of the three main credit reporting agencies. Visit AnnualCreditReport.com for access to yours. Look for any inaccuracies that could be forcing your credit score to be lower than it should be. Make sure there are no signs of identity theft.

Pay Delinquent Accounts: Eliminating any outstanding debts that are in collection will help improve your credit score. Make sure to pay your bills by the due date to avoid an even lower credit score.

Ask for Proof: If your insurance company charges you  higher rates based on your poor credit score they are required to tell you based on the Fair Credit Reporting Act. If they tell you that be sure to ask for proof. They must give you a copy of the credit report they used to obtain the information about your credit score.

Check Around: Quotes vary with different insurance companies. If you’re not pleased with the quote you receive from one company, check around. You may get a better rate for car insurance from someone else.

Young drivers are subjected to higher car insurance premiums. This is just the way it is. This is understandable both as these young drivers first start driving and are therefore inexperienced and also as they enter into a demographic that is known for being a bit car accident prone.

Have you ever wondered if car insurance companies just make up their prices or what they cover with their insurance? The better question is probably if you would know enough to be able to tell the difference between made up figures and real ones.

There are many things that you should know about car insurance. Aside from the obvious, there is a whole list of untruths that circulates through society about this often mysterious topic. Have you ever heard that red cars cost more to insure? The truth is that car insurance companies do not even ask for the color of your car when they provide you with an insurance quote. Keep reading to make sure that you do not have any misconceptions about car insurance.

Teenagers are notorious for having ridiculously high car insurance premiums. Most of us just accept this fact as is and just do not bother to give it a second thought. The fact is, insurance premiums do not always have to be so much for teenage drivers and by looking around and doing a bit of work, those premiums can be greatly reduced.

One of the most important things we want for our family is financial stability. In the event that we are not here to support them, it is comforting to know that this is why life insurance was introduced. The types of life insurance commonly used are term life, whole life, universal life, and variable universal life.

Term life insurance is the original form of life insurance and it is considered to be pure insurance protection. The difference between term life and other types of life insurance is that term life does not build any cash value. Your dependents are relying on you for financial support. If you are no longer in the picture to care for them it is good to know that your life insurance can cover some of their lost income.