If you own a car or are about to become the owner of a car, getting a good car insurance must surely be one of your priorities. Before choosing a car insurance policy, you must understand its various aspects and component. A step by step guide to understand car insurance follows:

Breaking your insurance down: What does the insurance cover?

• Liability in case of bodily injury: If your car leads to somebody’s death or injures someone, car insurance will cover the death and injury claims made against you, and cover the legal costs.
• Medical bill: Car insurance company will pay to treat any injury incurred to you or the third party due to the accident.
• Liability in case of property damage: If your car in an accident damages someone else’s property. Car insurance will cover the claims filed against you.
• Comprehensive (physical damage): This covers the damage your car may suffer due to vandalism, wind, flood, fore or theft. It also covers any other issues not related to accidents.

What are the factors that determine the kind of car insurance rates you will get?

Age: If you are young, and do not have much of experience when it comes to driving cars, your rates will be higher, also men tend to get higher rates than women.

The Demographics of your location: If you live in an area which has a high crime rate, you will be compelled to pay more.

Traffic violations: If you violate traffic rules and are slapped with charges like speeding or other kind of violations, your insurance bill will surely increase. To avoid this, always obey traffic rules while driving.

Claims: Premium on your policy also depends on your claim history. If you are filling to get insurance claim almost every year then you may have to pay additional money for your car insurance.

Systems to prevent theft: If you have theft deterrent systems installed in your car, you are likely to get some discount.

Training: Some car insurance companies provide a lower rate if you undergo a period of driver’s training. This is focused on accident prevention which will ultimately benefit you as well as the insurance company.

Payment plans: There are companies that offer rebate based on the kind of payment plan you choose to take. For example, if you pay the bill at an annual basis, you may get a discount. There are few companies offering discount if you renew your insurance policy online.

It is essential that you go through some options and quotes that are available to you before selecting your car insurance. Make a decision only after reading the entire body of information. Many a times some companies can offer lower premium by not covering some parts of your vehicle so we have to be careful regarding the inclusions & exclusions and don’t just settle for the lower insurance premium.