This may seem like a silly question to some people, howevercar insurance prices and options can vary by company and it is good to know theins and outs before purchasing a car insurance policy.

It is law to have car insurance if driving a vehicle.  Car insurance protects not only you but alsoyour vehicle from damage, theft and collisions. If you have an accident while driving your vehicle where you are found atfault, you will have to pay the full cost of damage to your vehicle as well asany other vehicles that may be involved as well as costs for injury topeople.  Without car insurance you couldlikely not be able to pay the full amount and may be sued.  By paying car insurance premiums monthly oryearly, the car insurance company will cover you for all costs and you willonly have to pay a deductible.  This isthe difference between a bit of an annoyance and total financial ruin.  It is that important!

Your car insurance rates will depend on a number of factorsstarting with your age, driving history and experience as well as the type ofcar you are driving.  Vehicles getclassified into car insurance groups. These groups will help determine the cost of your car insurance.  Car insurance groups are based on thesefactors:

?       Damage and partscosts

?       Repair costs andtimes

The longer the repair time, the higher the cost.  Higher cost equals higher group rating.

?       New car values

Price is important especially for cost of replacement and repair.

?       Body shells andaccident repairs

How available is the basic frame of the car? This is important for certain damage repairs.

?       Car performance

Statistics show that high acceleration and top speed cars result in morefrequent insurance claims.

Good security features help reduce the risk of the car being stolen orvandalized.  This can help reduceinsurance claims cost and therefore put the car in a lower group.

When purchasing new car insurance the best idea is to do a little comparisonshopping online.  It is fast and simpleto get free online quotes from different car insurance companies so that youcan find the right policy for you at the right price.  Most companies will offer at least a 10%discount for buying your auto insurance online as well.  Having car insurance is the law in order todrive a vehicle so you may as well put in a small amount of time to find theright car insurance company that will take care of you and your vehicleproperly.