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Tag Archive | "auto insurance"

Kinds Of Auto Insurance For Your Car

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Roads in the US are busier than ever, and more and more people are traveling every day. With all that driving comes more opportunities for accidents, and that’s one reason why you need a good auto insurance policy. Such a policy will protect you from the huge financial liability and accident can leave you with. Although there are many, many choices when it comes to insurance policies, you can find a good low price auto insurance plan by just knowing a few things about the different types of insurance.

In the US, each driver is required to have a minimum amount of insurance coverage usually referred to as liability insurance. This type of coverage pays for damage which results from an accident you are found to be at fault for. The two types of liability coverage, property damage and bodily injury, pay for damage to the other person’s vehicle and injuries to the people in the vehicle, respectively. Liability insurance does not, however, pay for damage to your own vehicle.

Most people find that they need much more coverage than simple liability insurance. That’s where other types of policies come in, such as collision coverage. Collision coverage pays for the cost to repair your car, whether or not you caused the accident. This is great since we all know that repair shops can charge hundreds or thousands of dollars for even simple repairs. Collision coverage is crucial if you still owe money on your car.

Those aren’t the only types of insurance, either. There are literally hundreds of different plans available, from plans which help you if your car breaks down to plans that will pay for rehabilitation and lost work time if you’re injured in an accident. To get started with your insurance search, go online to get insurance quotes from as many different sources as you can.

How Auto Insurance Premiums are Decided

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Never purchase insurance from the first company that you talk to because a full comparison of policies is the only way to determine which company really has the best deal. There are lots of different factors that can determine an auto insurance quote. Some of those things are age, driving history, gender, credit score and accident history.

Age: Most insurance companies look at age as determining the risk factor. They look at the geographical area and see whether older or younger people are having more accidents. If you are under the age of twenty four then most insurance companies will see you ask a risk and raise your annual insurance rate. If you are twenty five years of age or older you will pay less for auto insurance because the insurance company sees you as having more years of driving experience on the road.

Driving History: Insurance companies will ask to see your driving record. This tells them if you follow the rules of the road and are a safe driver or if you do not and will be a risky insure for the company. Some companies raise rates for speeding tickets or accidents, and some raise rates for both. If you have many speeding tickets on your record that means you do not practice the rules of the road and could potentially become involved in many accidents. This would cost the insurance company lots of money so they would require you to pay more money for them to insure you. Not every company will give discounts for good driving which is why a car insurance comparison can really help you find all the discounts that you deserve.

Credit Score: With any type of contract, the credit score comes into play and determines your rate. Sometimes the credit score can determine whether or not a company will even insure a person. If they see that you have entered into many contracts and gone into default, they may decide not to insure you or require that you pay your annual rate up front. A great credit score will get you a great rate and possible a discount with certain companies.

Gender: It may sound horrible but some companies raise rates based on gender. This is all based on statistics that show that in certain areas a certain gender has more accidents than the other gender. For example in Texas single males have more accidents than single females. If you find yourself in the gender that is deemed to have more accidents and get a raised rate, it is best to counter act this with a good credit score and a great driving record.