You simply can not operate a vehicle on the road without auto insurance. With that said, just because you need to have it, does not mean that you should not take strong consideration to the type of insurance you will be paying for. In the event of an accident, you will want to be sure that you have provided yourself with the best coverage for the money. When you are looking into car insurance you need to think about things like what kind of vehicle that you have. If you like the small, sporty cars your premium is going to be higher than if you had something like a truck. Thats because prices are based somewhat on what you paid for the vehicle but also how much it would cost to repair the vehicle. They even look at if its the type of vehicle that gets stolen a lot. If you have a shiny new car, you wont want to drive around with the evidence of a fender bender. So your auto insurance on a new car should include collision insurance as well. That way, your car will stay looking good longer. However, do you really care about that fender bender if youre driving an old beater? Since states only require liability insurance, and since collision is expensive, once your car gets to the "I dont care that much how it looks, just how it drives" stage, drop the collision and your auto insurance payment will go down dramatically. Students are usually offered a lot of discounts when it comes to auto insurance. If youre a student looking to save money on a policy, check out resident student discounts. These discounts are for students who only use their vehicles during the weekends, holidays and summer months. You can save some big money with this discount. When buying a new or used car, dont forget to factor in the cost of insurance. Your dream car may come with an insurance premium that pushes the monthly payment out of your reach. Do some research before you go shopping. You can find average rates for different car models online, or your insurance broker can provide this for you. Did you know that it isnt only your car that affects the price of your insurance? Insurance companies analyze the history of your car, yes, but they also run some checks on you, the driver! Price can be affected by many factors including gender, age, and even past driving incidents. If your annual mileage driven is low, your auto insurance premium should be, too. Fewer miles on the road translates directly into fewer opportunities for you to get into accidents. Insurance companies typically provide a quote for a default annual mileage of 12,000 miles. If you drive less than this be sure your insurance company knows it. The cost of car insurance is only one aspect of many that you need to consider. By reading the fine print you will be able to find out the amount of the deductible you will owe if you have an accident, the total coverage on the policy and the upper limits of any benefits provided. When you are reading about the different types of car insurance, you will probably come across the idea of collision coverage and lots of words like premiums and deductibles. In order to understand this more basically, your should be covered for damage up to the official blue book value of your car according to your insurance. Damage beyond this is considered "totaled." When switching your auto insurance coverage, one important tip is to cancel your old insurance policy just before accepting the new one. Auto insurance is expensive enough without having to pay for two policies at the same time, so be sure to cancel the old policy and have the new one issued on the same day so that there is no period of double payment. If you want to avoid paying a Related Home Page high premium, dont drive a flashy car. Sports cars and other high performance vehicles, often have premiums that are two or three times larger than that of a standard car. You should also research commonly stolen vehicles and be sure to avoid them. Most insurance companies will charge significantly more to insure these types of cars. These are some of the basics that will help make you knowledgeable about car insurance. Follow up on options, and your former confusion will disappear. You will understand car insurance. Having a concrete understanding will help you chose insurance policies that are sufficient for your needs.