Why is Auto Insurance Necessary?
Although we are dealing with a very basic concept, one can't help but ask: why is Auto Insurance so important?
Simply put, auto insurance is an agreement between a policy holder and the auto insurance company. The policy holder pays a premium, and the company agrees to pay for losses as dictated by the specific policy.
Auto Insurance provides coverage of property loss, liability, and medical expenses. If you are at fault in an accident, your insurance company may have to pay for your property loss and medical bills in addition to any damages that you caused to the other drivers car and any injuries that they sustained during the accident. Likewise, if you are in an accident and someone else is at fault, their insurance should cover your expenses as defined by their 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 is a large number of parameters that affect your auto insurance premium: your age/gender/marital status/geographical location/credit rating/education/years of driving experience, as well as the type of vehicle you want to insure, the number of accident claims you've had, driving distance per year, miles driven to work, business use of your vehicle, theft protection and safety devices installed in your car, and whether you have multiple drivers and cars on your policy. For example, a male driver with multiple violations and bad credit history would have to pay a higher premium than a woman who has been driving for 20 years without any driving incidents.
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). - 21396
Simply put, auto insurance is an agreement between a policy holder and the auto insurance company. The policy holder pays a premium, and the company agrees to pay for losses as dictated by the specific policy.
Auto Insurance provides coverage of property loss, liability, and medical expenses. If you are at fault in an accident, your insurance company may have to pay for your property loss and medical bills in addition to any damages that you caused to the other drivers car and any injuries that they sustained during the accident. Likewise, if you are in an accident and someone else is at fault, their insurance should cover your expenses as defined by their 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 is a large number of parameters that affect your auto insurance premium: your age/gender/marital status/geographical location/credit rating/education/years of driving experience, as well as the type of vehicle you want to insure, the number of accident claims you've had, driving distance per year, miles driven to work, business use of your vehicle, theft protection and safety devices installed in your car, and whether you have multiple drivers and cars on your policy. For example, a male driver with multiple violations and bad credit history would have to pay a higher premium than a woman who has been driving for 20 years without any driving incidents.
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). - 21396
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 briefly described the necessity of Auto Insurance. To read more articles that will help you better understand Auto Insurance and possibly save you money, visit his site, the Auto Insurance Information Highway.
posted by X - Men @ 4:18 AM
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