They Want Me to Buy What? Understanding Car Insurance

Image Source: Wikimedia Commons

Image Source: Wikimedia Commons

The idea of having your own car was probably pretty exciting until you realized you had to pay for maintenance, gas, and car insurance. While a basic gas budget is pretty easy to calculate, trying to understand car insurance policies can be confusing. So what are you actually buying?

Automobile Liability

No matter where you go, you’re going to find that the law requires you purchase automobile liability insurance. The requirement varies depending on the state or country you’re in, but it is mandated by law. If you are found responsible for causing an accident, the liability portion of the policy will pay for the damage you cause to a person or to his property. [Read more…]

The Shock, The Horror: Saving on Car Insurance in Your 20’s

girl in carIt was only a handful of years ago that I myself was in my 20’s. As a teen, my first couple of cars were old vehicles that needed only the bare minimum in terms of insurance – liability and nothing more. After my second car was stolen, though (in my early 20’s), I started exploring my options for newer vehicles.

And boy was I surprised. Full coverage car insurance, with liability, comprehensive, and collision coverage was a lot of money. I worked for a car insurance company at the time, too, so I knew how to leverage discounts. I still experienced significant sticker-shock.

The major contributing factor was my age – early 20’s.  [Read more…]