As everybody knows, Auto Insurance is necessary. But why is that the case?
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.
There are numerous factors that affect the premium you would pay for you auto insurance, including: gender, age, marital status, your occupation, your education, the type of vehicle you possess, your credit rating, geographical location, driving distance per year, years of driving experience, previous driving violations, business usage of your vehicle, accident claims, miles driven to work, theft protection and safety devices on your car, and whether you have multiple cars and/or drivers on your policy. For example, a married male driver with no violations and 10 years of driving experience would pay a lower premium than a 17 year old male that just received his license last week.
If you live in a rural area, your premiums will probably be lower than a driver who lives in New York City. The chance of getting into an accident is greater in highly congested cities. Safety and theft deterrent devices on cars usually land you a discount, because they are proven to reduce risk of injury and loss.
A good way to get the lowest possible premiums on your Auto Insurance is to shop around. Fortunately, the internet enables us to get multiple quotes almost instantly, and it is quite likely you would find a cheaper auto insurance with the same conditions, as some companies calculate their risk differently (i.e. assign a different risk to a specific geographical location).
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.
There are numerous factors that affect the premium you would pay for you auto insurance, including: gender, age, marital status, your occupation, your education, the type of vehicle you possess, your credit rating, geographical location, driving distance per year, years of driving experience, previous driving violations, business usage of your vehicle, accident claims, miles driven to work, theft protection and safety devices on your car, and whether you have multiple cars and/or drivers on your policy. For example, a married male driver with no violations and 10 years of driving experience would pay a lower premium than a 17 year old male that just received his license last week.
If you live in a rural area, your premiums will probably be lower than a driver who lives in New York City. The chance of getting into an accident is greater in highly congested cities. Safety and theft deterrent devices on cars usually land you a discount, because they are proven to reduce risk of injury and loss.
A good way to get the lowest possible premiums on your Auto Insurance is to shop around. Fortunately, the internet enables us to get multiple quotes almost instantly, and it is quite likely you would find a cheaper auto insurance with the same conditions, as some companies calculate their risk differently (i.e. assign a different risk to a specific geographical location).
About the Author:
Theodore Hoffstrader has been dealing for years with Auto Insurance issues and through these trials has earned 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 might save you money, visit his site, the Auto Insurance Information Highway.
No comments:
Post a Comment