No matter what state you live in, you must carry auto insurance to drive a vehicle. Even if you have been purchasing car insurance for many years, you still may be confused with certain terms insurance companies use. You are definitely not alone.
Here are a few important things you should know about auto insurance.
There Is a Big Difference Between Comprehensive and Collision Insurance
Many people get comprehensive and collision insurance mixed up. The reality is that they cover completely different things. Comprehensive insurance pays for theft and damage caused by fire, rainstorms, and other disasters. Collision insurance, on the other hand, only covers damage resulting from a vehicle collision.
An insurance agent can help you determine the right type of insurance to purchase for your vehicle.
The Type of Vehicle You Drive Can Affect Your Insurance Rates
If you are about to purchase a new vehicle, you should keep insurance in mind. Some vehicles are much more expensive to insure than others. For example, sports cars are more likely to get stolen than other vehicles, so they cost more to insure.
If you want to save money on insurance, consider buying a safe and practical vehicle.
It Is Worth It to Shop Around
Auto insurance rates can vary greatly. If one insurance company has very high rates, do not hesitate to call others companies for quotes. If you take the time to shop around, you are more likely to find affordable coverage.
Your Belongings Will Not Be Covered
If your vehicle gets stolen, your auto insurance policy will not reimburse you for the items that were in your car. That is why it is best not to store valuable items, like laptops and jewelry, in your car.
There Are Many Ways to Lower Your Premiums
If you think you are paying too much for auto insurance premiums, do not hesitate to talk to your insurance agent. You may qualify for many types of discounts. For instance, if you do not drive your vehicle very often, you may qualify for a low-mileage discount. If you have not had any moving violations in a few years, you also may qualify for a discount.
As you can see, there is a lot of information about auto insurance. If you have additional questions about your auto insurance policy and coverage, do not be afraid to discuss them with a company like LA Insurance.