How many times have you simply signed on the dotted line without truly understanding what it is that you are signing? If you are like most people then you probably have done the same thing. With that thought in mind I decided to pull out my car insurance policy and a Webster dictionary and go through my car insurance policy. After a few hours I was totally blown away by what I had signed. Now I truly understand what Dorothy felt like when she discovered the truth about the Wizard in the classic movie ?The Wizard of OZ?. Once the curtain was pulled back my life was forever changed.



All car insurance polices have some sort of premium, which is the money that you spend in order to cover your car incase of some sort of damage. Premiums for your car insurance can be extremely contradictory and are determined by a number of factors. Although sad, it is true ? gender is the number one determinant for car insurance payments.

According to industry experts men are 80% more likely to be involved in an accident. This is the reason why the so-called experts will tell you that men have a greater need for car insurance. All things being equal car insurance for men is a lot more expensive than it is for women. Some times I wonder if these industry experts have ever seen my mother, sister, or even my girlfriend drive before. I am absolutely positive that they would change their opinion if they would have done so.

The experts also say that teenagers are considered high risk and will have to pay higher car insurance premiums. However the car insurance premium can be reduced if the teenager takes some sort of defensive driving course. This information varies from state to state. Many states now require teenagers to take defensive driving courses in order to obtain a driving permit and car insurance.

It is standard for car insurance plans to have what is called a deductible that the client (you) is responsible for before the car insurance provider will take care of any expensis.

Car insurance is slightly different than other types of insurance because you can purchase car insurance that covers specific needs. For this reason there are various types of car insurance policies. Your car insurance basics are covered by liability car insurance plans. Liability car insurance is usually the minimum required by state laws. Liability car insurance is characterized by set dollar amount coverage for damages resulting from accidents or negligence. The coverage amount of liability car insurance can be applied to property damaged in the accident that is not a car.

Car insurance also comes as collision car insurance. Collision car insurance is meant to cover the cost of repairs to a vehicle involved in an accident, or the cash value of the car if it cannot be repaired.

Comprehensive car insurance is also available. With comprehensive car insurance, coverage of fees for repairs is provided for accidents that are not collisions. Comprehensive car insurance will, for example, cover hail or fire damage.

There is no way that I could cover every aspect of car insurance in this article. This article is however meant to encourage you to take out your insurance policy and maybe examine it a little closer.