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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How to get Lower Auto Insurance Rates

By following three common-sense steps, you may be able to save money when it comes around to renewing your auto insurance policy.

Shop Around: It sounds obvious, but shop around to get the best deals. If you have been with the same insurance provider for several years, you may no longer be getting the best deal for match your needs. Premiums for the same level of coverage can vary by hundreds of dollars, and in the current financial climate companies are doing everything they can to get new customers. Getting quotes from a few different providers can take a couple of hours, but save you several hundred dollars.

Spend Your Money Wisely: Consider increasing your deductible. If you are prepared to have a higher deductible, you should be able to reduce the cost of your insurance policy, as you are taking a higher financial risk and will be paying more in the event of a claim. Rather than paying extra money to have low deductibles, and not having liability coverage, think about raising your deductible and including this type of coverage. The actual cost of the premiums is unlikely to change much if you do this, and you will be giving yourself additional cover.

Find out what Discounts you are eligible for: You may be surprised at what discounts you are eligible for in North Carolina. If you are a careful driver with a clean driving record, then ask for a discount on this basis. The same applies if you are over 50 years-old or a student. Some companies give discounts to people that drive less than a specified distance every year. Another common discount is if you buy more than one type of insurance through the same company. If you car has additional safety features - such as anti-lock brakes or an anti-theft device, you premiums could be reduced as a result. The key thing is to make sure that you ask, as the insurance provider is unlikely to offer the discount unprompted.

These tips are relatively obvious, but many people do not follow them. You can lower your auto insurance in these ways and many others as well; the important thing is to know that you can lower your auto insurance. However, knowing is not enough, take some action, and actually make it happen. Think smart and you will be well on your way to lower auto insurance rates.

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.