Function

• A car insurance policy is imperative for every driver. It will pay for damages caused by you or another insured driver, covering both property damage and bodily injury. Some insurance policies will cover necessary repairs to your own vehicle. This will be helpful if an uninsured driver strikes you or elements such as fire or weather damage your car. Your first goal should be to determine what kind and how much insurance you need. With this information you can begin getting estimates from different insurance agencies to find the lowest rate possible.
  
  

Types

• The three primary types of car insurance are comprehensive, fire and theft, and third party. Comprehensive, commonly referred to as full coverage, is necessary if you are financing your vehicle. This is the most expensive. Unless you must have it, seek a more affordable policy. Fire and theft will pay for your car if it is stolen or harmed by fire. While less expensive than comprehensive, it can still be pricey. Third party, referred to as basic liability, will only pay for the damage you cause and not damage to your vehicle. However, it is the most affordable option.
  
  

Features

• Your driving record and credit report are the two main features an insurance agent will look at when you request a quote. By keeping your credit score high and avoiding points on your driving record, you will get a much lower premium. If you get a speeding ticket or other moving violation, find out if you can take a defensive driving class to sidestep points being added to your license. In addition keep your grades high if you are still a student. Many insurance agents give discounts for good grades.
  
  

Considerations

• Probably the best opportunity you have to get a low rate on car insurance is before you buy a car. Do some research on what an insurance policy would cost on all of the types of cars you are considering. An older car will have a lower rate than a new one. A four- or six-cylinder will cost less in insurance than a hot rod or SUV. A domestic minivan or four-door car will be more affordable to insure than a sporty foreign model would.
  
  

Prevention/Solution

• One thing you must do when shopping for automobile insurance quotes is ask lots of questions. Request information on any available discounts. There might be some you never considered. Make the agent aware that you only put minimal miles on your car driving to work or school. Ask your parents if you might be able to get on their policy. You will benefit with a lower rate with multi-vehicle discounts as well as your parent's good credit and driving history.