Car Insurance Guide

Obtaining the best possible rates on car insurance involves some research and comparison shopping. This is especially true for inexperienced drivers. Car insurance for young male drivers is more expensive and therefore every avenue must be explored to find affordable premiums. Combining liability insurance with a full collision protection plan will almost always result in a discount. Homeowner's insurance and life insurance combined with a full auto protection policy also means substantial savings.

Figuring Liability Insurance
This coverage is mandatory in almost every state, but the minimum amount of protection varies. The coverage is broken into three segments. Figures represent the amount of protection required to cover injuries sustained by an innocent party, the minimum amount of protection needed to cover all injuries per accident and the amount that must be carried to cover all damages per accident. When using an online comparison site shoppers will enter their state of residence and the quotes given will reflect the minimum amount of liability protection required by that state.

Some companies may offer a lower monthly payment but a higher initial payment to activate the policy. Liability insurance is not a contract and can be canceled at any time if the driver chooses to accept a policy from a competing provider.

Is Collision Insurance Required?
Lenders will require this coverage as a stipulation of the loan agreement. Until the vehicle is paid off the lender is the legal owner. This means if the car is severely damaged and the registered owner stops making car payments the lender has no way of recovering on the investment. Collision insurance and comprehensive coverage protects the lender as well as the registered owner. Most insurance companies offer a small discount when combining liability insurance with collision protection. When comparing quotes consumers are encouraged to check out the rates for collision insurance with lower deductibles. Reducing out of pocket expenses from $500 to $250 may mean only a few more dollars per month spent on premiums. Adding uninsured motorist protection and personal injury protection means a more costly policy, but combining these into a single protection plan is far less expensive than buying them separately. Uninsured motorist protection and PIP is required in some states.

Car insurance for young drivers is less costly if the teen or young adult has completed a defensive driving course. These are available in many school districts as part of the curriculum. The completion certificate can be presented to the insurance provider for discounts on liability insurance. It also means savings when the teen driver is added to the parent's policy.