Almost every state has laws stating that people have auto insurance, but the actual regulations regarding auto insurance vary from state to state - so the type of coverage that you require depends on the state in which you live in.

Even if there are no laws, it is highly recommended that you have some form of cover; otherwise you may end up paying out huge amounts of money in the event of an accident, or even losing your home, in a worst-case scenario.


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10 Ways to Save Money Paying for USA Car Insurance

When you sit down to work out your budget, your car payment and car insurance are probably two areas that add a significant part of your outlay. Statistics show that on average, Americans pay about $800 per year for car insurance or close to $70 per month.

What if you could lower that amount by 15 to 25 percent? Would you be interested? Here are 10 suggestions that could help you move toward that goal.

1. Shop Around and Compare Rates Regularly
Your circumstances change and this can save you money. Make some calls and some comparisons every 3 to 6 months just to keep your finger on the pulse and on the price. You might be surprised at the savings you find in USA.

2. Increase Your Deductible
The higher your deductible, the lower your premium. The cost of an accident will be that much more expensive, but the savings on your premiums could make it well worth it. In addition, if you have not been in an accident and are usually an extremely safe driver you could increase your deductible without worryl

3. Insure Your Home and Your Car With the Same Company
Some companies insure cars, homes and more. The more you insure with that particular company, the higher the discount you will receive and you will maintain your same coverage.

4. Pay Your Policy in a Lump Sum Annually
We don't al have the money to do this, however if you do, it could save you up to $100 per year and maybe more in service charges for paying more often, therefore creating more bookkeeping for the company. The more often you pay the more service charges you will be charged and those charges add up.

5. Take Advantage of Good Driver Discounts
Most insurance companies provide discounts for drivers with excellent driving records. In fact, some states require companies to provide these discounts. If you haven't had any accidents or tickets in the last three to five years, you're probably eligible. If the company does not offer this discount to you ask them for it.

6. Don't Overpay Just Because Your Record Isn't Perfect
It's never good to have an at-fault accident or moving violation on your record because insurance companies will consider you a higher risk. But not all companies look at violations and accidents the same way, and many companies specialize in insuring different types of drivers. If you shop around, you might be surprised at what you find. Keep comparing until you find the company who will help you and treat you well.

7. Look for a Safe Vehicle Car Insurance Discount
Many car insurers offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes. When getting updated car insurance quotes, be sure to indicate such safety features.

8. Pay Less When You Drive Less
Many car insurance companies will offer discounts on vehicles that don't end up with a great deal of annual mileage. If your commute has recently changed or you have recently retired and no longer drive your car to work, you might save money by getting an updated quote. Make sure your insurance company knows, and if you work from home, really let them know. That saves a lot of miles.

9. Take Advantage of Good Student or Senior Discounts
Because many companies feel conscientious students make conscientious drivers, students currently enrolled in school often receive a discount on car insurance if they can demonstrate good grades. Similarly, providers often offer discounts to drivers over 50 as a result of their experience driving.

10. Don't Pay for Coverage You Don't Need
You need to pay attention to the details of your car insurance policy. Sometimes, you could end up paying for things you don't need. For example, you may be a member of a car club that provides roadside assistance yet also pay for towing on your car insurance policy. You don't need to pay twice, nor do you need the double coverage.

All you need to do to put these to use for you and make sure you start saving money is to begin double checking the 10 items - not only with your current insurance but with a few others to make sure you are getting the bet rates possible.

Car Insurance Q & A

Question: If someone borrows my car and crashes it, does my insurance apply, or does theirs?
Answer: Generally speaking, the liability follows the car, so your insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits.

Question: If a child goes to college with mom or dad’s car, are they covered under the parents’ personal auto policy?
Answer: This can vary from company to company. Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary disputes later on.

Question: Do I need ‘gap’ insurance?
Answer: If your vehicle is on finance, and its value is now less than the amount you owe, then yes you need gap insurance. If you owe less than its value, then no, you do not need gap insurance.