Auto Insurance

Car insurance policies come in many different shapes and sizes, largely to give shoppers access to a car insurance product that’s perfect for them, their family, their vehicle, and their lifestyle.

Every driver has unique needs, which is why there are so many auto insurance policies to choose from.

If you’re going on vacation or won’t be driving your car for an extended period of time, there’s an easy way to save money on your car insurance.

Your goal should be to look for opportunities to lower your rate with each passing year. 

Shopping for car insurance is not easy, or fun for that matter! Hunting for the best rates on car insurance is hard enough then there are factors like your age, gender, credit and driving record. And yes, all of these things are determining factors in every auto insurance quote you get.

There’s a lot to know and keep track of in the fast-paced world of automobile insurance. The myriad of terms used to describe everything from apples to oranges causes even more confusion for consumers shopping around. So, to help your process go more smoothly next time, below is a glossary of some common (and some commonly misunderstood) terms related to automobile insurance from various sources on the Net.

The minimum amount of liability coverage you must maintain varies from state to state. But, beware since each state sets its own “legal” minimums that may or may not provide you with enough coverage. Beyond these legal minimums, any additional coverage is purchased at the buyers discretion. The key here is to find a balance betwixt adequate coverage and overpaying for insurance in order to have peace of mind for you and your family.

Your own insurability and getting quotes are only part of the shopping for auto insurance process. Finding a reputable insurer is the other, more important part. After all, you want an insurance company that has a history of good service. You want an insurance company with the ability to settle claims from its policyholders, a company with a strong financial outlook and relatively few complaints and most importantly, you want an insurer that’s legally entitled to do business in your state.

Each state has its own Department of Motor Vehicles (DMV) and most use a “point” system to track your individual driving record. Whether a parking ticket, moving violation, at-fault accident or DUI charge, each infraction comes at a price as each has a certain value associated with it. The fewer of these points on your license (cannot be less than zero), the better shape your driving record is in.