Listed below are important things you should know about car insurance:

• Auto insurance is mandatory
  • Car insurance is a mandatory requirement in almost every state except New Hampshire and Virginia, but even in those two states, you’ll need to provide proof of financial security should you get involved in an at-fault accident.
• The cost of insurance is dependent on several factors including:
  • Policy lapse
    • Insurance providers view licensed car drivers who do not have insurance coverage as irresponsible or risky drivers. As a result, letting your policy lapse may most likely affect your premiums when you decide to purchase car insurance. If you do not want such premium changes, ensure you buy your coverage before the current policy expires.
• Your car can affect the insurance rates
  • Institutions like the Highway Loss Data Institute compile accident statistics on different types of cars.
  • Most insurers use this kind of data to set prices on your coverage. For instance, in case the car you own is costly to repair, the insurance company will have to spend more when you get into an accident. Equally, if the auto you have is very safe and can protect its occupants well, the insurance company won’t pay a lot in the event you are involved in a crash. If the model of your car is unlikely to be stolen, the probability of your insurer replacing it is low.

All these car-related factors we have discussed can lower or raise your car insurance quote. Be sure to consider them before and even after getting your car insurance.