Car insurance is really a “catch-all” phrase for an insurance policy that is specifically designed to provide coverage for the operator of a motor vehicle. The motor vehicle that is being insured may not even be a “car”.
The term “motor vehicle” can include a regular automobile, a motorcycle, or a truck. All of these can be covered by a car insurance policy.
However, when you go online and type in “car insurance”, you may be surprised to find that under that category, other things such as all-terrain vehicles, personal watercrafts (PWs, “jet skis”, whatever you call them), boats, and recreational vehicles are also included in that category.
“Well,” you may be thinking, “that makes sense. After all, these things are motor-operated. So, yeah, including them in the “car insurance” category is a pretty good idea.”
And, you are right. However, one nationally-known insurance company that devotes much of its business to providing car insurance takes it one step further. This particular insurance company offers insurance coverage for those who use a Segway Human Transporter®.
You know what these are, don’t you? They are the little vehicles that resemble a scooter in that they have a platform for you to stand on, and handlebars that you hold on to.
However, you power them and control the speed by leaning forward or backward, and steer them by shifting your center of gravity in the direction in which you want to go while manipulating the handlebars. They are battery-operated, but do not have an actual motor or engine.
Anyway, the particular national insurance company that provides insurance for them is, as of this writing, the only one to recognize them as a “vehicle”, and provide insurance coverage for them. So, anyone who owns one, or is thinking about getting one, might want to look into this.
So, now that we know that the words car insurance can mean several different things, let’s talk about how much car insurance may cost, and what factors determine how much it costs.
Of course, it goes without saying that the amount of coverage provided plays a large part in how much you will pay for car insurance. So, if you are looking for cheap car insurance or budget car insurance, you will not be looking for a lot of coverage.
When states began making it a law that licensed drivers were required to have car insurance, it became a necessity for some insurance companies to offer policies that provided the minimum coverage that one had to have in order to be in compliance with the compulsory (or mandatory) insurance law. Thus, cheap car insurance came into being.
Cheap car insurance has the lowest premium rates available; however, it also has the least amount of coverage. Whatever your state says is the minimum dollar amount that an insurance company can pay for property damage, liability, and personal injury is exactly what cheap car insurance will provide.
Budget car insurance, on the other hand, has slightly higher rates, but is by no means the most expensive policy that can be had. The coverage is a little better, but the rates are still low enough that most people, especially younger drivers, can afford to pay them, yet still feel as though they have adequate protection should they need to file a claim. So, remember, when you hear someone refer to “car insurance”, that person may actually be talking about insurance coverage on his or her Segway HT®. And, someone who is talking about cheap car insurance rates may really mean that they pay a fairly low premium, but still have a good policy.
No matter how you refer to it, if you are a licensed driver, at some point you are going to need car insurance. So, shop around, compare car insurance quotes, and see what is really the best for you.
When getting car insurance quotes, ask if you can “bundle” all your vehicles—cars, trucks, boats, PWs, and anything else that falls into that category, rather than take out separate policies on each one. You may be able to do that, and save money by being considered a “multi-vehicle” policyholder. You can then truthfully say that you have cheap car insurance (or budget car insurance, if you think that sounds better.)
