“A favorite way to lower car insurance premiums is to increase your deductible. Sometimes it makes sense, other times, it could be a disaster waiting to happen. increasing your deductible only makes sense if you have the savings to cover it. If you normally have several thousand dollars in savings, increasing the deductible won’t be painful, since you’ll have the cash to cover it. But if you normally have an empty bank account, you’ll be better off with the lower deductible.”
Just about everyone who drives has car insurance – but how much do you really know about auto insurance? Car insurance is required in nearly every state in the U.S. (New Hampshire being the notable exception). Almost all of us buy car insurance, but it has provisions that most people know little about.
With that in mind, let’s spend some time discussing basic car insurance definitions and coverage types. There’s more going on with this common car insurance coverage than most people think, and a little bit of knowledge will make you a more savvy shopper and potential save you hundreds of dollars a year.
Why do you have to buy auto insurance?
Almost everywhere, laws require that drivers have car insurance.
Although car insurance protects you — it can pay for your loss in the even your car is crashed, stolen, vandalized, or destroyed by fire — the laws that require car insurance are designed to protect other drivers and pedestrians from you.