Car insurance is the agreement that you make between yourself and the insurance company. This contract includes the amount of premium that you will be paying monthly and the type of losses the company has agreed to cover for you.
Types of car insurance:
I. Auto insurance: This type of car insurance provides cover for medical care, property, and liability.
II. Property insurance: This type of car insurance covers any type of physical damage to your car and the theft of your vehicle.
III. Comprehensive insurance: This type of car insurance covers any losses apart from collision causes. This may include natural causes such as fire damage, flood damage or even damage caused by animals or even men during instances such as riots and many others.
The importance of car insurance:
The first action that is taken after purchasing a vehicle is getting car insurance. This is very important because it protects you, the vehicle, fellow motorists, pedestrians and even your passengers against accidents or any other damages that might result from instances such as accidents and other instances.
Most countries require that you have car insurance before you drive on their roads. It is an illegal offense to drive without one in almost all countries all over the world and you are liable for very hefty penalties if you don’t have one. In America, car insurance was made a necessity in 1927.
In fact, Connecticut was the first country to offer this type of insurance in 1925. Apart from New Hampshire, where you only need to prove that you can pay for any damages in case an accident occurs, you need to have car insurance in all the other states in America.
How car insurance works:
The car insurance operates by covering you with the premium you provide at the end of the month. However, you can decide to pay less for your car insurance by using the power of deductibles. Essentially this means that you will have to pay more from your pocket in case an accident or damage occurs to the vehicle or any other person involved in the accident.
The premium must be paid monthly and failure to do so results in not being covered by the insurance company.
Tips on acquiring car insurance:
1. Decide the type of car insurance you need. It is essential that you acknowledge that you need car insurance regardless of whether you will cause an accident or not. This is because you need to protect the safety of all road users when you are driving. Deciding on a comprehensive cover is probably the best this is because it covers almost all the dangers that might involve your vehicle.
2. Always purchase the car insurance according to your lifestyle. The type of lifestyle you are leading literally dictates the kind of car insurance you should purchase. Luckily car insurance is not usually rigid. This means that you can adjust the insurance as your lifestyle changes.
3. Various factors will always dictate the rate of your car insurance cover. This includes your record of driving and your driving mileage. Keep in mind that you can use deductibles to reduce the amount of monthly premium.