Car Insurance 101

Here’s a little introduction to auto insurance for those stepping out into the market, or choosing to educate themselves about if for the first time. First of all, you will be rated on a number of factors. This will include your credit history, your driving history, your age and gender, what kind of deductible you’ll be paying, what kind of car you drive, and how much credit you want, among other things.

Payments are usually made every six months, although you can make monthly payments. Monthly payment, however, are charged for a payment plan fee and add to the total price of your premium. The cheapest method of payment, although the most costly upfront, is to pay an entire year’s worth of car insurance upfront.

Auto insurance is required by law, and the laws vary by state. Usually you are required to have a minimum of liability insurance and uninsured motorist coverage. The car insurance companies are regulated by the state government, and are held accountable to certain procedures and laws. They must be registered with the state in order for your insurance with them to be valid.

Ways to save on insurance include taking advantage of discounts, shopping around for quotes, and paying a higher deductible. You can also make sure, when shopping for a car, that you get the kind of car that car insurance companies feel more comfortable insuring by checking into its crash and theft history.


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Gary

    Im a new driver and Ive learned a lot by just browsing your site! Thanks Austin!