There are many classes you have to take to graduate from high school (whether you like it or not). Sometimes it's hard to understand how all this stuff applies in the real world. While you just have to trust that you will make use of the information someday, at the time it can seem overwhelming and frustrating. The last thing you want to think about is auto insurance. It's hard enough to deal with parents, school, and your social life, why bother learning about something that Mom and Dad handle?

If you are lucky enough to have your own car or borrow a car from Mom or Dad, you remember what it was like before you had your license and always had to bum a ride. Your drivers license and access to a car has given you the kind of freedom that freshman only dream about. Freedom doesn't come without responsibilities (ouch!). All that freedom can be taken away in an instant if you don't have car insurance. Doing your homework on auto insurance will prepare you for the day when you are on your own…and the less surprises you have, the better.

Insurance may not be at the top of your priority list right now, but soon it will be. If you have been lucky enough to be on your parent's auto policy, you may never have even considered auto insurance. In the near future it is going to be up to you to get auto insurance because you can't stay on your parents'policy forever.

So, why do you need auto insurance anyway? Well, the first answer is simple: it's the law. The DMV requires that you take financial responsibility for owning and operating an auto in California. The easiest way of satisfying your financial responsibility is by buying liability insurance. Bodily injury liability limits must meet the minimum of $15,000 per person and $30,000 total for all persons per accident. Property damage liability limits must meet the minimum of $5,000 per accident. Liability insurance protects you when you cause property damage or bodily injury to someone else when driving your car. If you are caught driving without liability insurance in California you will be charged hefty penalties. Violators can face up to hundreds of dollars in fines for a first time offense. Also, if you are involved in an accident and do not have liability insurance, your license may be suspended whether you are at fault or not.

Legal issues aside, insurance is a way to protect yourself in the case of an accident. Your coverage can't stop an accident from happening, but it can help to put you back in the place you were before an accident occurred. It can also protect you from financial hardship if you are at fault and hurt someone else or their property in an accident. There is no doubt that you need auto insurance. If you're not convinced yet, then read the following reasons to get insurance now, before it's too late: Do you have the money to pay for repairs if your car is damaged or vandalized? Physical damage coverage (comprehensive and collision) will pay for these types of repairs. Do you have the money to cover towing and car rental if you total your car? You can choose an auto policy with special coverage options such as towing and rental car coverage. It's not too cool when you're forced to take the bus to the prom! What would you do if your car was stolen? Would you be able to buy another car if the police didn't recover your car? Would you be able to pay off your car loan? Comprehensive coverage will put you back in the driver's seat with a total loss settlement if you car is stolen. Do you have the financial certainty that you can pay for any accident that was your fault? When you have liability insurance, your insurance company takes care of it. Would you rather pay a small deductible or the entire amount of damage to your car? That's a no-brainer! How would you feel if your friends were injured in your car and could not afford medical treatment? Medical payments can provide an amount of coverage for initial medical treatment. Are you the type of person who complains about how others are so irresponsible? Take the real responsibility of driving and owning a car seriously and purchase auto insurance.

A – Auto premium is based on three primary factors: how long you've had your license, how many miles you drive in a year, and how many accidents or tickets you have. The insurance company can also use a variety of secondary factors to determine premium, but the most important secondary factor is the frequency and severity of claims the company has experienced in the area where you live. Since claim experience differs between companies, the premium charged by insurance companies can greatly vary. That's why you need to shop around.

A – Auto insurance costs more for people who have little driving experience. Accident statistics show that newer drivers and drivers who are teenagers and young adults have an increased likelihood of accidents. As you get older and gain more driving experience, your premium will go down. However, you won't enjoy lower premium rates if you get too many tickets or have too many at-fault accidents along the way.

A – You bet they can! Your premium is partially based on your own driving experience. If you have tickets or at-fault accidents, you will be charged an additional surcharge based on the type of ticket or accident for which you have been cited. The more tickets and accidents you have, the higher your premium.

A – Comparison shopping is the best way to save money on auto insurance. Savvy shoppers who keep a clean driving record will be able to find the best insurance deals with good companies. Another way to save money is by taking larger deductibles and lowering limits; however, make sure that you are not putting your financial future in jeopardy by choosing low limits and high deductibles. Auto insurance needs to be a priority in your budget, not an afterthought.

A – Generally speaking, if your parents have a standard auto insurance policy, it will cover any person in the household that drives on an occasional basis. However, when there is minor or adult of legal driving age in the household, your parents' insurance company will require that person to be permanently added to the policy for a premium charge. The insurance company can also decide to exclude that person from your parents' policy if separate proof of insurance from a different insurance company is provided. An insurance company can start charging additional premium from the time that a driving permit is issued to a minor. It is up to the individual insurance company to determine when to start charging additional premium. Some will wait until the driver's license is issued.

A – When an insurance company offers coverage, the full premium is due up-front. However, most insurance companies offer payment plans. These payment plans require a down payment and usually charge a small service fee for each installment. Brokers and agents may also offer premium financing options from premium financing companies. Read these contracts very carefully, as you may be responsible to pay the full premium amount to the premium financing company even if you cancel your auto policy in the middle of the term.

A – The insurance company is only obligated to give you 10-day notice of cancellation due to non-payment of auto premium. What this means is if your premium is not in their office and applied to your account by 12:01 a.m. the day that it is due, the insurance company will send you a 10-day notice of cancellation. This gives you the chance to pay the insurance before your policy is cancelled. If the company doesn't have your money, you don't have the coverage, and they will not send out another notice telling you that you have been cancelled. You can see why it is very important to make sure your payment is made in plenty of time.

A – You will have to give the insurance company your new mailing address and the principal address where your car will be garaged. If your insurance company does not operate in the state where you will be attending college, you will have to get new insurance in that state.

A – Some insurance companies offer special "good student" discounts. The idea behind the discount is that students who are busy studying and getting good grades are less likely to have the time to drive around partying and getting into accidents. Not all insurance companies offer good student discounts. Contact your insurance company or company representative and ask.

A – It's not a good idea to let your friends borrow your car. Most standard policies will cover a friend who has borrowed your car; however, if a friend borrows your car on a regular basis, the insurance company most likely will not pay for the loss. Also, some policies exclude coverage when someone other than you drives your car. It may not be fascinating reading like your biology text, but it pays to read and research your policy to see how your insurance company responds when an accident happens.

A – You need to exchange personal and insurance information with the person or person(s) involved in the accident. Write down names, phone numbers (work and home), license numbers, drivers license numbers, and insurance company names and policy numbers. Make sure you take down witness information as well. You may want to carry a cheap disposable camera in your glove compartment to take pictures of the accident scene and damage to the cars and other personal property. If there is bodily injury, call the police and ambulance if necessary. As soon as you can, call your insurance company and give them the details of the claim. You may want to see our brochure entitled, "So You've Had an Accident, What's Next?" for more helpful advice.

This is cache, read story here