Auto Insurance ro Car Insurance is bliss. An average American has anywhere between 5-6 different cars in his/her lifetime. If any individual buys or rents a car, purchase of auto insurance is mandatory.. Auto-insurance-and-loans.com is a dependable name in the American insurance database. Auto-insurance-and-loans.com brings you a database of reputed insurance carriers, who will help you find the best car insurance policy for your car.
Auto Insurance is an insurance policy, which safeguards you from financial damages and/or losses incurred involving the use of a car, associated with you, your vehicle, and property. Auto Insurance is a bond that connects the insured and insurance company through a fool proof contract, wherein as per the contract the insurance company is liable to pay for the losses as defined in the insurance policy.
State Laws
It is compulsory in most of the states in U.S to avail a minimum amount auto or Car insurance coverage policy which prevents you from getting stuck in hefty repair bills in an automobile accident or even a law suit.
All the 50 U.S states have specific requirements while availing auto insurance policy. While some states insists on not registering a car, unless a motorist shows them proof of liability, while honor system used by other states does not ask for proof of insurance until drivers have had accidents or tickets on their records. Five states (Wisconsin, New Hampshire, South Carolina, Tennessee, and Virginia) do not require motorists to carry liability coverage, but maintain that drivers purchase at least the state's minimum coverage.
Standard and Optional auto insurance policies
The standard auto insurance coverage such as Liability insurance, Medical payment insurance (or PIP – personal injury protection) and Underinsured / Uninsured motorist insurance are important and compulsory types of auto insurance coverage that an every driver must carry. The optional auto insurance types like Collision and Comprehensive Insurance help protect your vehicle, but not mandatory.
Reading a Liability limit
• First number - maximum bodily injury liability for one person injured in one accident
• Second number - maximum bodily injury liability for all injuries in one accident
• Third number - maximum property damage liability for one accident
For e.g. in California, the minimum liability limits are 15/30/5, out of which $15,000 is for bodily injury liability for one person in one accident, $30,000 for all the persons injured in one accident and $5,000 for property damage for one accident.
Setting Premiums
Insurance rates for Auto Insurance policies vary from insurer to insurer. Factors that are taken into consideration while determining the cost of the policy
• The type of car you drive,
• The state in which you live
• Age, gender, marital status,
• The level of coverage needed,
• Auto Insurance prices, options,
• Driving records for any accidents or rules violation tickets.
Additionally, you have to provide information like full vehicle identification number, year and cost of the vehicle and theft rate.
Ways to lower the cost of premiums
• Carry out thorough car insurance comparisons for the best deal.
• Ask for higher deductibles.
• Drop coverage on older and used cars i.e. the age and condition of the car.
• Buy a low profile car. Stay away from high performance sports cars or high theft vehicles.
• Inquire about group insurance.
• Maintain a good credit history.
• Take low mileage discount advantage.
• Ask for other discounts for security features like antilock brake, airbags, etc. Or else take your home insurance coverage from the same insurer.
• Take an accident prevention or defensive driving course.
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