If you own a car, you are legally obligated to have car insurance. Although this is the case, there are a lot of people that do not understand how car insurance works. In this video, car insurance as a whole is explained.

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The point of car insurance is to insure yourself against three different things: liability, property damage, and medical. The way this works is by purchasing coverage from a company to cover what you feel you need to be protected from. Different car insurance policies protect against different things. The policy you choose depends on how much money you want to spend and what you want to be protected from. Policies that include more benefits and more coverage options cost a higher premium. Insurance companies usually have different levels of coverage starting at the most basic package for the most affordable price.

Car insurance is never a stagnant amount of money. Depending on different factors such as ticket history, accident history, age, and various other things can affect the price of your insurance. If you accrue a large amount of speeding tickets, you are seen as more liable than the average person so your rates will be higher. Most car insurance companies lower your rates over time if you are deemed as a safe driver. A safe driver means someone who doesn’t get into frequent accidents or frequent trouble with law enforcement. All these things are taken into account when you are deciding on car insurance.
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