Although we are dealing with a very basic concept, one can't help but ask: why is Auto Insurance so important?
Put in the simplest terms, auto insurance is contract between a policy holder and the auto insurance company. This contract determines that the policy holder pays a predetermined premium, and the insurance company pays for any losses (the precise details are specified in the policy).
Auto insurance provides coverage of liability, medical expenses and property loss. In the unfortunate event an accident occurs, and you are the cause of this accident, your insurance company will have to pay for any medical bills and property loss you sustained. Furthermore, if any injuries were suffered by the other driver, or any damages caused to his vehicle, it would have to pay that as well. Conversely, if you are involved in an accident but the fault is not yours, the other driver's insurance would have to cover your losses (as specified by his insurance plan).
This arrangement helps to protect you from a lawsuit if you get into an accident. There are also times that you may have an accident with someone who does not have coverage, and your insurance covers you during those times as well. Thus, if the insurance company chooses to, they can sue the other driver for their losses.
Factors that can determine your Auto Insurance premiums are age, gender, marital status, geographical location, previous driving violations, type of vehicle you wish to insure, accident claims, your credit rating, occupation, education, driving distance per year, years of driving experience, miles driven to work, business use of your vehicle, theft protection and safety devices on your car, and whether you have multiple drivers and cars on your policy. For instance, a married female driver over the age of 25 will have a lower rate than that of a single 18 year old male driver.
Living in a big city is likely to increase your premium because the chance of being involved with a car accident in an area that is highly congested are greater than, say, in a rural area where there aren't as many cars. It is possible to receive a discount on one's insurance by including safety and theft deterrent devices on cars, as these have been proven to reduce risk of injury and loss.
In order to get the cheapest premiums on your Auto Insurance, all you need to do is simply obtain multiple quotes from various insurance providers. Using the internet, this becomes almost effortless as most companies will offer you a quote in minutes. Furthermore, some quotes are bound to be cheaper than others, since every company has its own equation for calculating premiums (some assign greater weight to certain factors, such as age).
Put in the simplest terms, auto insurance is contract between a policy holder and the auto insurance company. This contract determines that the policy holder pays a predetermined premium, and the insurance company pays for any losses (the precise details are specified in the policy).
Auto insurance provides coverage of liability, medical expenses and property loss. In the unfortunate event an accident occurs, and you are the cause of this accident, your insurance company will have to pay for any medical bills and property loss you sustained. Furthermore, if any injuries were suffered by the other driver, or any damages caused to his vehicle, it would have to pay that as well. Conversely, if you are involved in an accident but the fault is not yours, the other driver's insurance would have to cover your losses (as specified by his insurance plan).
This arrangement helps to protect you from a lawsuit if you get into an accident. There are also times that you may have an accident with someone who does not have coverage, and your insurance covers you during those times as well. Thus, if the insurance company chooses to, they can sue the other driver for their losses.
Factors that can determine your Auto Insurance premiums are age, gender, marital status, geographical location, previous driving violations, type of vehicle you wish to insure, accident claims, your credit rating, occupation, education, driving distance per year, years of driving experience, miles driven to work, business use of your vehicle, theft protection and safety devices on your car, and whether you have multiple drivers and cars on your policy. For instance, a married female driver over the age of 25 will have a lower rate than that of a single 18 year old male driver.
Living in a big city is likely to increase your premium because the chance of being involved with a car accident in an area that is highly congested are greater than, say, in a rural area where there aren't as many cars. It is possible to receive a discount on one's insurance by including safety and theft deterrent devices on cars, as these have been proven to reduce risk of injury and loss.
In order to get the cheapest premiums on your Auto Insurance, all you need to do is simply obtain multiple quotes from various insurance providers. Using the internet, this becomes almost effortless as most companies will offer you a quote in minutes. Furthermore, some quotes are bound to be cheaper than others, since every company has its own equation for calculating premiums (some assign greater weight to certain factors, such as age).
About the Author:
Theodore Hoffstrader has been dealing for years with Auto Insurance issues and through these trials has gained expert status. In this article he described the necessity of Auto Insurance. To read more articles that will help you better comprehend Auto Insurance and possibly save you money, visit his site, the Auto Insurance Information Highway.
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