Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
* Property coverage pays for damage to or theft of your car.
* Liability coverage pays for your legal responsibility to others for bodily injury or property damage. * Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
How is your auto insurance policy price determined?
The average auto insurance policy price is derived from a variety of factors.
Many of these variables are common knowledge and make sense for the most part.
it's always a good idea to refresh yourself with what insurance companies are looking for when determining how much your coverage will cost.
*Liability: coverage is the primary - and usually mandatory - part of the auto insurance equation. Liability means what the word implies: it saves your bank balance when you're liable for destroying someone else's car or body parts.
*Driving Record *Coverage Amount *Age *Vehicle Model and Driving Mileage *Your Residence
What auto insurance coverage?
What types of auto insurance coverage to choose from?
*Your Age Generally younger drivers are considered to be high risk and so the insurance rates are higher. *The make of your car Most insurance companies tabulate auto insurance rates based on the make of the vehicle. Compact cars and sedans have lower rates while sports models, exotic cars, and SUVs are assigned high rates of premium. *Gender is a factor too Females get lower rates of auto insurance while males pay higher auto insurance premiums. *Financial stability Auto owners with great credit scores and credit reports generally pay lower premiums than those with bad credit scores and reports. *Driving records have a say in premiums payable If a driver has a clean driving record for three consecutive years then auto insurance providers will happily extend policies with lower premiums. *How many insurance policies you hold If you approach for auto insurance the same insurance company that has you covered for life, health, hone and so on then you would automatically be eligible for great discounts on premiums payable for an auto insurance policy. *The distance traveled per year If you restrict the number of miles traveled then you will be able to get auto insurance at lower rates. To do this you need to walk, use public transport, and car pool. *Whether or not you are eco-friendly If you care for the environment and drive a non polluting vehicle then the auto insurance premiums will be lower.
* Accidental damage, fire and theft risks. * Protection against windscreen breakage and for fitted accessories such as audio equipment. * Additional protection against riot, civil commotion, hijacking and armed robbery. * Hurricanes, earthquakes and flooding. * Payment of the purchase price for a seriously damaged or stolen car that is less than 12 months old (on Non-commercial Policies only). * Immediate cover anywhere in the world (except the USA and Canada). * Multiple vehicle and fleet discounts.