Perhaps the most commonly purchased type of insurance is auto insurance also called drivers insurance or car insurance. Although laws vary somewhat almost all states today require drivers to carry some form of car insurance to legally drive a vehicle on public roads. The penalties for driving without insurance can range from fines to residence or in case of repeated violations possibly even a short sentence of imprisonment. Given that the drivers insurance is required by virtually every state it is worth having some basic knowledge of the subject.
Types and coverage levels
The type of insurance cover that a person needs and how much to pay for that coverage varies depending on a number of factors such as the drivers age his or her drivers post the age and value of the vehicle the dollar amount for coverage and if the vehicle is fully paid. While car insurance can be quite complex there are four types that everyone should be aware of.
Responsibility coverage is the most basic type of coverage it protects the driver against any allegations that may come after an accident or other event that is the drivers fault. This is usually the minimum coverage that a driver needs to be considered insured. Liability insurance usually has the lowest premiums but it does not cover any damage to the drivers own vehicle. Therefore a lower monthly premium must be balanced against the risk of a potentially high economic burden. In addition most loan lenders require a driver to carry extensive coverage until the borrower has paid the loan in full.
Collision insurance covers a part or full cost of repairs to the drivers vehicle in a collision based on an estimate of the project cost of the repairs. While collision insurance can definitely pay for itself in a car crash monthly premiums are higher than a single debt. Most policies are also subject to deductible which means that the policy company is responsible for paying a certain amount before the insurance company pays. Deduction fee varies greatly; In general the higher the deductible the lower the monthly payments and the less deductible the higher the monthly payments will be.
Extensive coverage is usually required for vehicles that are still being paid. Many vehicle owners also have extensive coverage for expensive or other valuable vehicles. Extensive coverage covers damage that is not the result of a collision fire theft vandalism etc. Although the exact subject matter may vary quite a bit from one policy to another.
Uninsured coverage will protect you if an uninsured or insured driver hits you or your vehicle. Although insurance is a legal requirement in most places it does not mean that everyone on the road is insured. This type of coverage means that you will not get stuck with the repair bill if someone is less responsible than you are in an accident.
Each type of insurance is available on several different levels of coverage. The higher the coverage in dollars the higher the premium will be. The premiums will also increase if the driver is involved in an accident or receives tickets for traffic violations. In addition premiums are higher for men than for women for younger drivers and for drivers in urban areas or higher crime areas. Nevertheless car insurance is a necessity for any responsible driver.
Before you get your car insurance quote its a good idea to prepare what you want your insurance to cover. If you only insure a very old car it may not be worth extending the cover to repair it in an accident. Of course the area where people try to save money on the insurance cost or premium. One of the easiest ways to lower the cost of your insurance is to allow more deductible. This means that the insurance company does not pay the first part of any claim up to an amount you specify. The higher the amount you allow the cheaper the insurance is to be.
One of the best ways to get a good car insurance is to ask your friends and family for a recommendation. If they use a good company it will give you a good starting point rather than just trying to investigate what the best companies are from the ad. If you can get more recommendations you will get more car quotas to compare.
If you are looking for car insurance notices it is best to find some companies that have been used by your friends or family and then get quotes from all of them. But before you start getting quotes make sure you know what you are from your insurance and that all quote you receive has the same coverage. This way you get the best insurance for the lowest cost for you.