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.

Get the best deals when shopping for auto insurance in USA. Request USA insurance quotes and compare!


Keeping Your Rates Down in USA by Driving Less

Driving less is no big stretch these days because of the gas crunch and other issues, but mainly the gas problems and prices.

Fuel prices are high, and Americans are choosing the simplest option to cut transportation expenses: they're driving fewer miles. But did you know that driving less often can save you money on auto insurance?

People who keep their cars in the driveway are involved in fewer accidents, file fewer claims, and cost insurance companies less money to insure.

Statistics released through The Federal Highway Administration report that American motorists drove 12.2 billion fewer miles in June 2008 than June 2007. It was the eighth consecutive month that driving decreased, and the biggest June decline in the nation's history. Travel on all roads dropped 2.1% in the first four months of 2008. California's Congressional Budget Office reports that in areas with adequate public transit between 2003 and 2006, for every 50-cent increase in fuel prices, highway trips dropped 0.7%.

It stands to figure that if you are driving less miles, you have less chance of being in an accident because your car is parked at home. As a result you may be eligible for an auto insurance discount. If you take an alternate means of transportation to and from work in USA, your insurance company may consider you a "pleasure driver." According to the Consumer Federation of America, this classification could save you 10 to 15% ($94 to $142 off the average premium) on your insurance.

The American Public Transportation Association (APTA) reports that Americans took more than 2.6 billion trips on public transportation in the first quarter of 2008-up 88 million trips from the same time period in 2007.

APTA president William W. Millar said in a press release, "There's no doubt that the high gas prices are motivating people to change their travel behavior. More and more people have decided that taking public transportation is the quickest way to beat the high gas prices."

According to Time Magazine, San Francisco is removing seats in its rail transit system to open up more standing room. In Boston, ridership levels are so high that officials are begging passengers to ride public transit only during non-peak times.

Saving fuel is an excellent way to cut transportation expenses, but getting a discount on your auto insurance could lead to substantial savings. If you're shopping around for an auto insurance quote, really do your research so that you can get the biggest discount possible when you buy your next policy.

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.