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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Tips To Help You Save Money on USA Auto Insurance

Auto insurance can be expensive in USA, and so it's advisable to save as much as you can. That does not mean you have to cut corners, but you need to be sensible, and know where to save. Here are a few tips that can help you save money on your auto insurance policies. Make sure you shop around for the best deals, as premiums and levels of coverage can vary from company to company.

  1. Shop around for different rates. Get a few car insurance quotes and compare.
  2. Get higher deductibles. When making a claim, a deductible is the amount of money that you pay, before the coverage starts. If you have a higher deductible, you will have a lower premium. A deductible of $500 instead of $200 on collision coverage, for example, could reduce your insurance cost by up to 30 percent.
  3. Remove collision or comprehensive coverage on old cars. If your car is worth less than $1,000, it is not financially viable to have these types of coverage. To find your car's value, check with your bank.
  4. Buy a car that is 'low-profile'. Basic models and cars that have lower theft rates will cost less to insure.
  5. Get low-mileage discounts. If you drive less than an agreed amount of miles every year, some insurance will give you a discount on your policy.
  6. Think about insurance costs when moving home. Traffic congestion and crime are higher in cities than countryside, and policy fees are higher as a result.
  7. Get discounts for safety features: Having safety features such as air-bags and seatbelts in your car will sometimes get you a discount. Ask your insurance provider about this.
  8. Ask about anti-lock brake discounts. Some states (New York, New Jersey and Florida, for example) have passed laws requiring insurers to give discounts to customers that have anti-lock brakes in their car - regardless of where you live.
  9. Always ask for a discount. Different insurers have different discount structures, such as reductions for insuring more than one car with them, a no-claims bonus, being over 50 years-old, having completed a driving course, student discounts etc. Make sure you ask - you may be surprised at what you are eligible for.

So, next time your shopping around for rates for auto insurance, keep these tips in mind. It's best to save where you can, especially considering the current state of the economy.

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.