Getting to Know Your Car Insurance

If you just bought a car or are about to buy one, you are going to be introduced to the wonderful world of insurance. When you stop to get your first car insurance quote, it is not unusual to go into sticker shock. Many of us are not prepared for what it will take to be financially responsible and to obey the laws of the state we live in. One of the things we need to be clear on is that the premium for the required car insurance quote is only there to protect you, as the driver, from lawsuits and the other accident victims from having to find the money for health expenses after an accident.
The premium listed on your car insurance quote is going to be based on your age, your type of car and your driving record. The longer you go without an accident the lower your premiums are gong to be. The same goes for moving violations. The insurance underwriters, the people that establish how much your car insurance quote is going to be, track accident rates for all ages and all moving offenses. They know within a few percentage points how many accidents will occur among people of your age and driving record. You may never have an accident but the money generated by all the drivers will defray the expenses of those that do. Your car insurance quote reflects that shared expense.
Since liability insurance is the one most required by states, it is important to know what that refers to on your car insurance quote. Liability covers the accidental injury to other people or their property in an accident in which you are found at fault. For the personal injury it can cover medical expenses, pain and suffering, and lost wages. Of note here is that if your car insurance quote is for the minimum required by your state and if that minimum is $20,000.00 it will not go far in paying the medical expenses of the injured. If at all possible, upgrade your policy from the required minimums for your own protection.

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