Top 5 Car Insurance Tips That Every Driver Must Know

Top 5 Car Insurance Tips That Every Driver Must Know

Car insurance is an interesting topic as well as subject so complex, but a necessary one. It is very important that drivers know the myths from the facts about car insurance so that they can understand their coverage and make informed decisions. Here are some car insurance tips that drivers need to know.
 
1: Understand how a ticket increases your car insurance rates. Many insurance companies only charge for moving violations, so parking tickets do not affect your insurance. There are many other types of tickets which do not cause an increase in the rates, and they vary from company to company.
 
2: Car insurances do not take responsibilities for everything in your car. No they don’t. They do not cover stereo equipments as well as other after-market parts.
While the coverage depends from individuals to individuals as well as from company to company, more often than none, the coverage for the car contents is very low.
A car insurance policy is mainly used for covering impact damages to the car and medical bills resulting from accidents. If you then want the car insurance to cover these after- market parts, make sure you ask for it or find out head of time.
If you have equipment and after-market parts installed on your vehicle, make sure you keep the receipts.

Top 5 Car Insurance Tips That Every Driver Must Know

 
3: Understand your no-fault insurance: No-fault insurance is a gray area. It does not mean that, in case of an accident, no one is at fault. There is always someone at fault in a collision; just that, irrespective of who is at fault, the companies pay the claims for their respective subscribers. The at-fault party naturally will see increased rates.
 
4: Insurance does not cover every car you borrow-If you happen to be driving a borrowed car and are at fault in a collision then the owner of the car will see a rise in his car insurance rate, not the borrower. This is especially important to understand and be aware of in case you happen to borrow cars frequently from friends.
 
5: Understand the least legals of your state: Each state has prescribed obligatory legal liability coverage and every driver needs to be aware of this.
But one must also be aware that this amount is not the perfect amount and does not cover collision and comprehensive coverage.
Drivers need to carry more than the legal minimum to avoid out-of-pocket expenses in case of collisions.
These legal mandates are in place to ensure that no one drives a vehicle without liability protection for other drivers.