How Your Job Affects Car Insurance

Are you worried your employment will have an effect on your car insurance? Find out here how to save money on car insurance.

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Types of Car Insurance Coverage

When you are looking for car insurance, it can be very easy to get swayed by an insurance agent that is trying to "protect you" at all costs. The reality is that when it comes to car insurance, each measure of insurance protection you get for your car is going to cost you. The fact is that you don’t have to get every kind of car insurance that your insurance company offers, you can still get excellent coverage for you and your vehicle without spending an arm and a leg. How can you do that? By understanding what kinds of coverage are available, knowing what is mandatory and what isn’t, and making the decision from there.

To put a car on the road you are required to have insurance coverage. Before you go searching for quotes, check with your local State Department of Insurance to become familiar with what you are legally required to carry on your car. Every state in America mandates liability insurance, but not every state requires comprehensive or collision insurance. If you don’t need these coverages and are not required to have them in your area, you can save money on car insurance by insuring the minimum amounts on your car.

Liability insurance is the insurance required to cover a third party for financial losses in the event of a collision. In the insurance game, you will be considered the first party, the insurance company is the second party, and any other party injured in a collision will be the third party. Liability coverage, the mandated coverage, will then cover other individuals in the event of an accident.

Comprehensive coverage is coverage for you and your vehicle in the event that theft, damage, or an act of god causes losses to your vehicle. This kind of coverage is exactly as it sounds "comprehensive" meaning it covers a comprehensive list of possible damages to your car. You can lower your premiums by still getting comprehensive coverage, and adding a deductible amount to your policy to ensure that you are still covered, and that both you and your insurance company will be responsible for financial damages.

Collision insurance is not often required, but is an extra protection for you in the event of an accident, whether or not it is your fault. Again, this is another type of insurance that you can use a deductible to protect yourself and the insurance company against risk. However if you are only looking for the bare minimum in insurance, this may be something to get in the future when your financial situation is a little better.

At the end of the day, knowing what you need and do not need will make all of the difference when it comes to saving money on car insurance quotes.