As everybody knows, Auto Insurance is necessary. But why is that the case?
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.
Therefore, auto insurance effectively shields you from a potential lawsuit if you cause a car accident. In the event you are involved in a car accident with a person who is uninsured, your insurance may potentially protect you as well (this depends on the plan's specifics). In this case, if the insurance company wants to pursue legal action against the other driver for their losses, they can.
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.
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.
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).
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.
Therefore, auto insurance effectively shields you from a potential lawsuit if you cause a car accident. In the event you are involved in a car accident with a person who is uninsured, your insurance may potentially protect you as well (this depends on the plan's specifics). In this case, if the insurance company wants to pursue legal action against the other driver for their losses, they can.
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.
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.
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 wrestling for years with Auto Insurance issues and through these trials has earned expert status. In this article he explained the necessity of Auto Insurance. To read more articles that will help you better understand Auto Insurance and might save you money, visit his site, the Auto Insurance Information Highway.
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