Just bought a car? Sounds great, your purchase represents all the excitement and freedom you’ve always craved! Buying the perfect auto insurance might be quite the opposite. Insurance is absolutely necessary as it is designed, not only for protecting you against any mishaps, but your family and vehicle too.

Today, there are many automobiles plying on the road and frankly not all drivers are as careful as you may think them to be. Car insurance helps in covering most part of damage expenses, which otherwise, would have to be borne by you. Most States often require car owners to hold valid insurance before they even take their car on the road.

With increasing fuel and maintenance expenses, owning a car is challenging enough; however, it is the replacement cost that puts an even larger hole in your wallet! Car insurance helps you in meeting all necessary expenses that you incur due to an accident. In addition to this, it also helps in covering some of your medical expenses.

Checkout these surprising facts that you should know before making the headlong dive and purchase auto insurance:

1. Auto insurance is tax deductible for business use.

It’s true! You decide how much time you use the car solely for business purposes and accordingly you will get a reduction in your insurance. In fact, many drivers appreciate a percentage of the mileage- you, too, can also opt for the flat per-mile reimbursement – as it is the best way to benefit. So, if you happen to be using your car 50% of the time, you are entitled to a 50% reduction in your insurance.

2. Affiliations with professional organizations, like AAA, will help lower your insurance rate.

It is best to check with your employer if they offer group auto insurance policies. Better still, you can ask your auto insurance agent about the organizations and groups that would help you bring down your insurance rates.

3. While opting for an insurance policy, be sure to state your occupation accurately, as it will have an effect on your insurance rates.

If you happen to be an engineer or a teacher, you will get discounted rates, while it may not be the case if you happen to be a rock band musician!

4. It is very important that you list your car correctly because it affects the auto insurance rates.

Give special attention to model names, mileage and if it is two-door or a four-door vehicle as there are loads of errors reported in these cases and insurances vary with the model of the car. You might end up paying more for a car that you are not even driving! Why pay more when you can just feed-in the correct information and pay less?

5. Did you know that temporary policies do exist?

Though most auto insurance policies are annual and open-ended, you can opt for temporary policy depending on the situation. What’s more, the claims that you make against the temporary policy will not affect the regular insurance rates. This does sound cool, right?

There are certain crucial things to be kept in mind before going ahead with auto insurance. It is important to understand how it works and most importantly, how it affects you! Auto insurance particulars are often mistaken and no doubt, it is a complicated industry. Being layman, it is difficult to comprehend all the nuances and complicated legal languages that come with it! Now that you are better informed, you are sure to make a smart choice. Know, compare, and look out for the details and get the best auto insurance policy for your car!