If you drive a car in California, you must have auto insurance with no exceptions! California auto insurance is designed to protect all parties involved if you have an accident. It provides for car repairs and medical expenses. Without California auto insurance you could not only be held financially responsible for the medical and repair bills of the drivers you hit, but you may also receive tickets, fines and even have your license suspended for not having a California auto insurance policy.

Living in California is expensive and auto insurance is yet another bill to pay. But if you don’t have it, you’ll end up paying much more in the long run. If you are pulled over for any violation, or even just in a random traffic stop, you can be asked for proof of insurance. Without it, you will probably face a hefty ticket, costing more than auto insurance would have cost you in the first place! Of course, this is the least severe penalty you might entail for failing to get California auto insurance. You can be fined up to $500, have you car impounded, receive a suspension of your driver’s license and face additional fees associated with impounding the vehicle.

If you actually get into an accident without having auto insurance your penalties will be much more severe. While no jail time can be currently assigned for failing to have auto insurance, you can be held responsible for literally thousands of dollars which can drive you into life-changing debt.

Despite these harsh penalties, people still drive without auto insurance, putting themselves and others at risk. In fact, around 14 out of every 100 drivers in the U.S. were driving illegally, without auto insurance, in 2001. This number was the same in years prior. Many states, however, have rates of uninsured drivers that are much higher than the national rate. Those who drive without California auto insurance added up to a shocking 26% in 2001. But what is most shocking about this number is that the uninsured drivers cause the largest number of accidents. In fact, chances are about 1 in 8 that the person that causes your serious car accident is uninsured.

In order to protect yourself and others, getting at least the minimum state required auto insurance is crucial. In fact, you might even find that getting an auto insurance policy is cheaper than you think. It’s certainly cheaper than paying the fees and fines associated with driving uninsured. And because getting an auto insurance quote is free, it’s easier and cheaper than ever to drive legally and insured.

Most of us have certain “dream cars” that we would love to own or drive at some point in our lives. For me, it would have to be a Lamborghini Gallardo or old school Ferrari Testarossa. Lucky for me, there are many services that offer exotic car rental – so one day I could head to Europe and have a Lambo delivered to me for a few days of driving debauchery on the AutoBahn in Germany. The costs for renting an exotic car per day in Europe range from $2k-$10k+, but here’s the catch. In addition to that fee, you have to typically pre-pay around $25k as a deposit as well as insurance fees. Keep in mind the deductible could be as high as $5-$10k or more!

In the U.S., it is an easier process. Most people that have been to the Vegas strip have seen the many exotic car rental shops in between the Bellagio and Mandalay Bay. Costs for exotic car rental there start as low as $400-$500 per hour of pure unadulterated fun. On top of that, you can simply use your existing auto insurance policy to cover you while driving. Keep in mind that you should review the deductible on your policy as well as personal injury and property damage limitations. It is always a good idea to run the idea by your car insurance company before dropping a lot of money to put your financial and physical future at risk while speeding through the Nevada desert. In addition to watching out for auto insurance issues, make sure to watch out for “the fuzz”. Last time I was there, I saw speed traps set right outside of the main city area as the desert roads open up for miles and miles. Getting a speeding ticket would be a terrible start to living out one of your life dreams!

One of the first questions people ask when comparing auto insurance is what determines the cost? With auto insurance, many variables factor into the ultimate cost. The following are some of those main things that determine how much you pay for a policy. I’ve broken them down into two categories–the things you can’t control and the things you can control:

Why Worry About Things You Can’t Control? You Can’t Control Them!

1. Where You Live. The place you live will impact your insurance rates. Besides the rate differences from state to state, living in a city, where you can naturally expect higher claims from traffic accidents, thefts and vandalism, will be pricier than in the burbs and more rural areas. Some would argue that this is something you can control. I would answer with a question, “How many people do you know who sold their houses and up-rooted their families just to save on auto insurance?”

2. Sex. No, I’m not referring to the quality, frequency, style or preference–most of which you can control–unless, of course, you’re like me and you’ve signed over your “performance rights” to your significant other. It’s gender that impacts auto insurance rates. Yes, gents, the fact is that we have more accidents than the ladies. So for the sins of a few, all men end up paying more. A little unfair? Perhaps, and some states are eliminating gender-based underwriting. Oh, and let’s not argue over whether this is one you can control. I can double check with Dr. Phil on this one, but I’m pretty sure lower auto insurance rates is not a major reason behind transgender surgery.

3. Age. Bottom line, if you are 16-25 you will pay more for insurance. It should come as no surprise that the inexperience and recklessness of our ADHD-saddled youth leads to more dust-ups and fender benders. Ah, youth is wasted on the young. It also makes sense that when we turn 26, get married and have kids, the world slows down just enough to make the auto insurers sleep a little easier.

Why Worry About the Things You Can Control? If You’re Worried, Change ‘Em!

4. Get Yourself a Spouse. It’s a known fact that married couples are safer drivers. If you disagree, just call up one of your bachelor or bachelorette friends and tell them you feel like taking a ride on the open road. What you’ll likely get is a thrill ride, music blasting, heading straight towards a destination of other joy-riding singles seeking the same. Then follow it up immediately with the suggestion to a married couple that you’d like to take a day trip out of town and that their car would be perfect. You’ll need about two minutes in the minivan to understand what the statistics tell the auto insurance companies–married couples are more careful. And the on-road conservatism isn’t only dictated by a dissipating level of testosterone, but rather the lovingly, sung chorus, “Honey, please slow down”. And yes, tying the knot or staying single is definitely in your control, until, of course, your guilt-producing parents start the “when are you going to give me a grandchild?” chatter. And if arranged marriages are in your future, feel free to move this up to the previous category, and consider this a new-found benefit.

5. Credit History. OK, here’s another reason to irrationally monitor your credit rating 24/7. The auto insurers have established a direct relationship between credit history and expected claims. If you’ve missed a few credit card payments, or you’re levered up like a Wall Street buy-out king, and your credit score is below 650, you’ll likely pay more for your insurance. Unfortunately, this gives the “free credit report” marketers more reason to pollute the airwaves with lame, pseudo-user generated indie bands making up songs about credit scores.

6. Driving Record. Simply put, if you are a good driver, you’ll pay less for your insurance. For the most part, you have control over your driving destiny. Here are some helpful tips to consider when behind the wheel: don’t speed, don’t eat (especially spring-loaded Chalupas from Taco Bell), don’t text, don’t use a cell phone (except hands-free), don’t read the paper, don’t day-dream, don’t fall asleep, don’t do needlepoint, don’t watch TV, don’t blog, don’t run red lights, don’t run yellow lights that you know will turn red, don’t hit anything, don’t park under falling tree limbs, etc… To the extent you’ve had an accident or traffic violation in the prior 3-5 years, you will pay more for your insurance.

7. Your Ride. Choose wisely. The model and make of your car will have a direct impact on your insurance costs. If your vehicle is one that is popular with the car-jacking set or is just prone to higher historical claims, then you’ll pay more.

These are some of the important factors that go into the formula that determines your final auto insurance quote. There are other factors too. In the end though, the best way to get the best quote for your insurance is to start at AutoInsuranceQuote.com and let the insurance companies compete for your policy. Ultimately, this is the best way for you to save big bucks.

In this economy, it has become abundantly clear that things have changed drastically in the auto industry. Many of the big names are on the verge of bankruptcy while others are bringing innovation to the forefront in terms of new cars and technology to save the environment. In the midst of this, car shoppers are facing a tough task in choosing the right vehicle and getting their hands on it.

Over the past decade or more, many people have chosen to lease cars as opposed to buying them. Simply put, leasing a car allows you to make fixed monthly payments for a set term for a vehicle that roughly mirrors the expected depreciation of that auto. At the end of the term, you return the vehicle to the dealership. So, while you pay monthly payments to use the car, it works almost like a long term rental but is economically fair for you and the dealer as the depreciation is paid for by you. Of course, the true financial model typically leaves the lessee (the consumer) with a higher residual value than the car is actually worth at the end of the term. That gives the lessor (car company) an advantage when they receive the car back at the end of the term as the lessee typically pays more depreciation than the car has actually depreciated. On top of that, playing with other items such as the money factor gives the lessor an advantage. All in all, it wasn’t such a bad deal for either party – until now.

You may have noticed (if car shopping recently) that most of the big U.S. auto makers have halted leasing as an option on their automobiles. A car buyer used to have the choice of buying a Jeep Grand Cherokee for a fixed price or paying a monthly lease fee. The practice has stopped for many reasons. Number one, the actual depreciation is only one piece of the pie. With gas prices rising and so many people out of work, it is easy to forecast parking lots full of returned lease vehicles that have terrible fuel efficiency and lower demand. That means, their actual values will fall and the auto makers/dealers will be left holding the bag as consumer demand dries up. Number two, many of the car companies do not even know if they will be in business in the future to receive those vehicles and try to sell them in the aftermarket or lease them off to a car rental company. Number three, technology may change entirely with mass produced hybrids where these older gas vehicles will be worthless. And number four, American cars have been eclipsed by Japanese and German players in terms of holding their value and overall consumer satisfaction (and even gross sales!). So, all in all, it is a case of very poor visibility for the U.S. auto industry. Many of the more solvent international players are still leasing as their vehicle line visibility is high.

So, what does this mean? The already teetering auto manufacturers have one less way to make a sale and one more reason to lose that sale to a Japanese car company. Consumers who are typically lessees, will shun the U.S. car companies. If a car company does not have faith in the value of their vehicles and the overall economy – enough to halt leasing programs – why should the buck be passed to the consumer to have faith in the value of the vehicle and the overall economy? This will be an interesting few years or more for the automotive industry. It is interesting to note that the auto insurance players still seem to be advertising in a big way in the midst of this industry shake up. Lease or buy, we all need car insurance and we all need to get auto insurance quotes to see how much we can save on our monthly payments.

In this economy, many people are looking for ways to reduce their costs on a monthly basis. Besides driving less, eating in more and clipping coupons when grocery shopping, there are other ways to save money. We all have fixed monthly expenses such as our cable bill, phone bill and so forth. Many people get auto insurance and then let the policy ride from year to year without seeing if they are over-paying or have too much or too little coverage. A good way to start saving money is to grab a copy of your current auto insurance policy (or print it out). Then, visit AutoInsuranceQuote.com and enter your zip code to find trusted auto insurance companies who service your area. Fill out a short form using your current policy as a guideline and then you will be presented with an auto insurance quote that fits your policy needs. Comparing multiple auto insurance quotes will help you possibly save hundreds of dollars per year. Get started with a free auto insurance quote today.