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How Does Car Insurance Work?
Posted By Ron On July 2, 2009 @ 12:07 AM In Insurance,Life,Money,Personal Finance | Comments Disabled
If you drive a car, you need car insurance  and in most states (48 of them), it’s more than just a good idea — it’s the LAW! When you buy car insurance , you are buying what is called a policy. The amount you pay is called a premium. Your policy’s premium is based on a variety of factors including the type of car you drive, your driving history, your credit score , other drivers in your family and what kind of insurance you want.
Since state laws vary, some of the coverage types listed here may be required by your state and some of the coverage may be optional.
The first step in choosing the insurance you want for your car is to know the laws in your state. This will tell you the minimum insurance you need for your car. It’s good to keep in mind that, just because your state may not require extensive insurance, extra coverage may be worth the expense. After all, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident — especially if you were not at fault!
Many insurance policies combine several of these types of coverage into various packages. Don’t be afraid to ask your agent to tailor a package with the types of insurance you specifically need. They CAN do that, trust me. If they won’t, move on to another agent.