Auto insurance is not a substitute for health insurance and life insurance, rather it is more of a requirement in the US. A car owner should settle for nothing but full coverage on their vehicle. There are so many factors that are taken into consideration before the premium rates are offered. Each company has its own set of rules to factor into premiums such as age, location, driving record etc., It is important to get an idea about these things before you go shopping for your auto policy.
Do not get too disheartened if you do not find any cheap polices, it does not mean that you cannot get one at all. A thorough comparison between policies will help you choose the cheapest auto insurer available in the market. Finding this information online is an easy way out and once you are armed with the details, you can approach the insurance provider of your choice. Insurance comparison sites are an easy way to get quotes from different companies in a matter of few minutes.
Once you have found a policy that seems to be in your budget, read the terms and conditions carefully before signing up for it. Insurance jargon is quite difficult to understand so enrolling at least one member in the family who has knowledge about insurance policies will help when it comes time to settle claims or plan for future expenses. You should also understand about the coverage you need when buying auto insurance . Experts advise choosing higher deductibles only if you are able to bear them financially. Premiums are usually determined by factors such as expected loss rate, dividends (distribution of surplus fund) and investment returns.
Insurance companies distribute surpluses among their customers in the form of dividends at various intervals. Dividends are not guaranteed because it depends on insurance company’s financial health at that time.
To make you understand better we will take a look on the Types of Auto Insurance policies.
There are 3 different types of auto insurance that you can choose from. Each Insurance provider offers different policies from which you have to choose one as per your requirement.
Liability Insurance covers all third party personal injury or property damage involved during an accident that is caused by a car owner’s fault. The amount reimbursed issue to the claimant reduces the car owner’s liability towards others involved in accidents. This policy does not pay for damages inflicted upon your own car.
Collision Insurance covers the cost of repairs to your car involved in an accident. If during an accident, the Insurance company decides that you are at fault, they are not required to pay for damages caused to your vehicle whereas if it is proven that the other driver was at fault, Insurance will cover all costs including damages and medical bills.
Comprehensive Insurance reimburses for accidents that occur due to reasons other than collisions with another object or when weather conditions cause damage. This policy can be availed even if you own a car which has an Anti-theft device installed in it as long as you have proof of its activation at the time of theft or vandalism.
Comprehensive Insurance also covers damages inflicted by natural calamities such as earthquakes, floods, volcanic eruption and landslides among others. Insurance for Rented Cars Insurance is a must if you have a rented car as your policy will cover any damages done to it by theft or vandalism.
Pro Tip! Always ask for ROAD SIDE ASSISTANCE along with you Auto Insurance Policy.
Roadside assistance is a service provided for road vehicles to provide roadside assistance in the event of an emergency. Roadside assistance differs from road service, which usually refers to road transportation related services (towing, flat tire repair, jump starts, lockout service). The rise of so many road vehicles nowadays made it hard for everybody to go home at night without worry of their vehicles being broken down on the road side and having no one around you who can help you out.
It provides help to motorists when they have broken down. It also includes providing disabled motorists with motorist assist such as gasoline delivery or removing barriers that block routes. In North America these services are typically provided by organizations that use contractors due to high costs associated with training and road side assistance equipment. While road service is often included as a part of the user’s automobile insurance policy, roadside assistance itself is typically sold as an aftermarket product with a charge that may be paid for with a separate credit or debit card account.
Many road vehicles today come with some sort of road side assistance but it still is not enough considering the number of road vehicles out there. That’s why it is highly recommended to contact road side assistance companies to request road services such as jump starts, flat tire repair and lockout service so you can go on your way and arrive at your destination safely.
Auto Insurance Quotes – Online Insurance Shopping
It has never been easier to find out the cheapest Insurance provider that offers high-quality insurance coverage. You can get auto insurance quotes from Insurance websites at the comfort of your home without having to spend hours looking through newspapers and magazines for advertisements. In case you want to contact an Insurance agent personally, choosing the right one is very important as he will be responsible for processing all claims on time so choose wisely.