This article will help you understand the different terms and phrases that you are likely to encounter while shopping for insurance. Knowing what the agents are talking about will help you make better choices when it comes to auto insurance.

Avoid getting any infractions on your driver's license. You can pay more on insurance if you have tickets and accidents on your record. If you cannot avoid an accident or a driving citation, look into going to traffic school to clean up your record and lower your insurance.

If you're insuring a teenager, check what it would cost to add them to a current policy, and then compare that to what their own policy would cost. Sometimes it is better to simply purchase a separate policy for the second car and your teenaged child.

Most states require liability insurance for drivers. You are responsible for knowing what kind of insurance policies you are required to have. If you're not insured or are under-insured and have an accident, you could suffer through a serious financial outcome. In addition, you could be charged with breaking the law.

Be careful to never lapse on your coverage since this could increase the amount you would have to pay for your auto insurance. You should be careful to not have a gap in your coverage when you are switching from one insurance provider to another. If a company finds these lapses, they will raise your rates.

Understand which kinds of car insurance coverage you should have. Some options will not make sense for your life or situation. If you have a history of accidents, it may be worthwhile to pay for collision coverage.

You should understand that when you buy auto insurance, the basic policy only covers the driver who is named in the policy. It is not uncommon for a vehicle owner to lend their auto to someone else, only to find that their insurer will not pay claims when an accident occurs. If you want a policy that covers additional drivers, be prepared to pay more.

Consider a less-sporty vehicle. It is more expensive to get car insurance for sports cars. Choose a smaller car with a less flashy profile. Those with high performance engines will be expensive to cover because they are involved in more accidents. Sports cars are also more likely to be stolen, so they cost more to insure.

Price isn't everything when deciding on an insurance plan. It's possible that it is a great deal, or the price may speak for itself. Learn about the company, along with their policies prior to buying and using if you have an accident.

Car insurance rates fluctuate and are dependent upon where you live. Insurance rates vary due to the chances of theft or accident, and suburbs and rural areas are generally cheaper than cities.

When switching over to a different auto insurance company, it is important to not leave your current insurance policy before your new policy is in hand. You do not want to be stuck without auto insurance, even if it is only for a few days because auto accidents can happy at any time.

Even if your teenager begs, absolutely do not buy the teen a car. Let your teenagers use a shared family car. Including them into your existing insurance will help keep premiums down. Some companies offer good student discounts.

If you come across lower quotes from competing insurance companies, discuss it with your agent before making a switch. Often, they will match the rate to compete.

Consider paying your entire premium up front. Insurers often charge a fee for making monthly rather than annual payments. Save some money each month so that when you need to pay your policy, you will be able to make one payment.

Maintaining a healthy FICO score will help you get cheaper insurance in most states. Auto insurers will check your credit before pricing your policy. There is evidence to suggest that drivers with poor credit are involved in more car accidents, which has led many insurers to consider credit ratings when developing coverage plans. Keeping a good credit score will mean lower insurance rates.

Now that you've read this article, you should have a better understanding of auto insurance, so you will be more confident when you make decisions about coverage. Education is the first step to conquering any confusion.