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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Auto Insurance – Are You Paying Too Much?

Auto Insurance rates continue to rise, whilst many people in Vernonia, OR are struggling financially during the current tough economical climate. As a result, by following a few simple steps you will be happy to discover that you are able to save money on your auto insurance.
The first step is to realize that the amount of your premium is strongly affected by the type of vehicle that you have. Even seemingly irrelevant features - such as whether your car is a two door or four door model can have an effect. When purchasing a new car, get insurance quotes beforehand, and you will not end up paying more than you expected to pay.

If you are not considering changing your vehicle, consider the safety features on your car. Additional safety and security features, such as anti-lock brakes, an anti-theft device and air bags can all reduce your premium. The same applies if you have a car which has a good government safety rating. Some states even have laws in place which require that insurance must give discounts to drivers with anti-lock brakes.

It is not only your car being safe that affects your quotes; it is also you being safe. You can lower your insurance rates by driving safely and staying out of trouble. Anything that will make you a low-risk customer to an insurance company will make them offer you a lower premium. Conversely, if you have driving violations you will be seen as high-risk, and companies will be unwilling to take you on unless you are paying them a large amount to be their customer.

Another way of proving your worth as a low-risk customer is to take an advanced driving course. It is a good idea to check with your insurance company beforehand whether this will lower your premiums, as you do not want to pay for a course that is useless. Various other discounts are often available, such as for people over a certain age, and for students with good grades. The key thing is to ask - if you don't ask, you don't get.

A final method of lowering your auto insurance is to raise your deductible. There is usually a deductible that you are now allowed to go over - again, this can often depend on state law. Keep in mind however that if you raise your deductible and are then involved in a traffic accident, you will have to pay the extra out of your own pocket.

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.