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So, Who Needs Car Insurance?
In the "good old days" buying car insurance was an easier process than it is today. There are all sorts of areas of a person's life that the insurers look into, from how many cars someone owns to what their credit histories show. Coverage also depends on the model of the car you wish to insure. They also take into account how safe it is, what condition it's in, how many miles it's been driven, and where it places on the cars stolen most often list.
Young Male Drivers
The driver's age is also a consideration. The highest risk demographic for accidents and tickets is teen-age males. A family can be penalized when they buy car insurance just for having a teenager in the house. It doesn't matter if he or she doesn't drive your car, you still may be charged as if he did. Some things that may help are: proof of a driver's education course, either private or through their high school, excellent scholastic achievement, and even being away at college, provided it's more than 100 miles from you home and the student doesn't have a car at school. Single males younger than 25 will also pay more for a policy.
People at the other end of the spectrum may also pay more to be insured. If they are more than seventy years of age and have had an accident or moving violation, their rates for auto insurance will go up in some states. Something that may help in this situation is to take a driving school. That will usually qualify for a 5 to 15 percent discount.
No Fault Insurance
A term you should be aware of in car insurance language is "no fault". Some US states have no fault insurance or are at least partially in that category. Without getting into the fine print, if you have it, it means that your policy will pay damages even if an uninsured motorist is the cause of any accident you're involved in. The chief benefit of this system is that you will get immediate medical attention. In theory it should also limit legal and administrative fees, which will keep premiums lower. Most of us can attest to the fact that auto insurance premiums aren't going down.