Auto insurance is large part of being a responsible vehicle owner. However, auto insurance policies seem to be written in the most confusing terms possible. This article can help you to better understand what all of those terms mean. By understanding the terms of the auto insurance world, you will be a more informed consumer. If you drive a car, many states require you to have adequate liability insurance. You have the responsibility to be aware of coverage levels for your state, and to acquire insurance appropriate to those requirements. If your vehicle is not insured when you are in an accident, there will not only be serious financial consequences, but there will also be consequences from classic car insurance rules cheap classic car insurance your local authorities. If youve been thinking about adding aftermarket parts to your car, check with your insurance company to see if they will cover the damage of these parts. Many times, insurance will not cover these parts, but only the amount that they add to the entire worth of the car - which may not be much. As a money-wise step when car shopping, take the cost of insurance coverage into account. Talk to your insurance agent about which cars offer the best rates. This will help you decide between a used car and a brand new car. Car insurance rates are significantly lower when covering a vehicle with a strong safety rating. Think twice before adding any kind of accessories to your car. Though they may be a nice luxury, fancy stereo systems and heated seats are unnecessary. If ever you car is stolen or totaled, your insurance wont reimburse you for damages done to it. Go for a non-sporty vehicle. Sports cars are going to cost you a lot more to insure. Purchase a car that is more low-profile. Those with high performance engines will be expensive to cover because they are involved in more accidents. Another reason its so expensive to insure sports cars is that theyre more susceptible to theft than other cars. When signing up for your auto insurance, remember that only you are covered unless you specifically add others to your policy. There are many times when an accident happened with a friend who had borrowed somebodys car; the insurance refused to pay. Car insurance policies can be purchased at a higher premium, that include allowing other licensed drivers to operate your vehicle. Reconsider purchasing costly add-ons for your car. Some things are nice to have, but ask yourself if the money you are spending is really warranted. If your car is totaled or stolen, your insurance will not reimburse you for the damage done to it. When you are requesting quotes for car insurance, comparing costs of annual premiums is just a small part of your overall analysis. 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. You can often save money on your car insurance by bundling it with your other insurance policies. Shop around to see what bundled insurance packages are available to you. Find out what deals are available for obtaining car, home and life insurance together. Check carefully to make sure your policy has everything you need at a price thats reasonable. Sometimes it can even be better to have two separate insurance policies. Search for rates from a variety of companies before selecting the auto insurance that works best for you. It is likely that you will need to look at more than one to find the most beneficial policy. If you drive under 7500 miles annually, you can be eligible for a reduced rate from many insurers. If you are aiming to save some cash on your auto insurance, cutting back on the number of miles you drive could be a good idea. Investigate monthly insurance rates before deciding which car to purchase. Vehicles with higher safety ratings are highly favored by insurance companies, usually leading to cheaper policies. Sporty cars are generally not favored by insurance companies. Be sure the premiums for your new car fit comfortably into your budget. Dont let a single ticket or accident sabotage your auto insurance premium. You can work to get your rates lowered. If you have had a ticket or accident, your insurance company may reduce your rates if you take and complete driving classes. Some insurance corporations, including Progressive, have chip technology to follow your driving habits and establish a consistent level of responsibility. Its possible to lower your rates by enabling this. As you can see, you can afford good auto insurance if you do your homework. With the advice and help offered in these tips, you can see that you are able to lower the premium.