Today, many people want to drive, though there is a legal obligation to have car insurance.
Many people are not clear about what this is all about.
This has led to an increase in auto insurance FAQs.
This guide attempts to answer a few of those.
The basics to know are that the coverage is an agreement established between an insurer and the insured (the policyholder), which is embodied in a contract.
The insured pays a premium received by the mandatory liability coverage for bodily injury and property damage.
An individual driving without proper coverage, will be fined and, in some cases, lose their car or go to jail.
If you have an accident, the responsibility lies with the uninsured driver, beyond any guilt of the accident by the other driver.
The uninsured motorist must pay the costs for repairs of the other vehicle.
Mostly, the uninsured cannot bear the financial costs of the repair.
The next auto insurance FAQs to be answered is about the premium price.
The premium is the price of insurance.
This rate is set by evaluating several factors.
It will take into account the age, sex and marital status of the applicant.
Other things considered will be the driver's history, the brand and model of car, previous coverage and the miles done each year.
Generally, those with poor driving records are statistically more likely to have an accident, so will be given a more expensive rate.
The fewer claims made through the duration of the policy, the greater the premiums should come down.
The insured can choose the method of payment; quarterly, yearly, and so on.
If the premium increases, it is necessary to notify the customer with at least two months before the annual policy expires, so that if the policyholder disagrees there is time to terminate the contract before the next renewal date.
Companies use special offers and discounts to attract certain types of customers.
For example, for drivers with an impeccable driving record or those who have not claimed for more than one year with the same insurer.
Working in this way you can get a provider to make a significant discount on the base price offered; everything is negotiable.
Premiums are variable.
They are updated according to statistical data of accidents, injury compensation costs, health care, labour costs of repair and replacement part costs.
They are also affected by an applicant's geographical location, career and credit history.
As such, it can happen where two similarly experienced people have the same car with different premiums.
These are only some of the auto insurance FAQs of course.
Most providers have a checklist of questions, which it is always advisable to go through before selecting which policy to buy.
Many people are not clear about what this is all about.
This has led to an increase in auto insurance FAQs.
This guide attempts to answer a few of those.
The basics to know are that the coverage is an agreement established between an insurer and the insured (the policyholder), which is embodied in a contract.
The insured pays a premium received by the mandatory liability coverage for bodily injury and property damage.
An individual driving without proper coverage, will be fined and, in some cases, lose their car or go to jail.
If you have an accident, the responsibility lies with the uninsured driver, beyond any guilt of the accident by the other driver.
The uninsured motorist must pay the costs for repairs of the other vehicle.
Mostly, the uninsured cannot bear the financial costs of the repair.
The next auto insurance FAQs to be answered is about the premium price.
The premium is the price of insurance.
This rate is set by evaluating several factors.
It will take into account the age, sex and marital status of the applicant.
Other things considered will be the driver's history, the brand and model of car, previous coverage and the miles done each year.
Generally, those with poor driving records are statistically more likely to have an accident, so will be given a more expensive rate.
The fewer claims made through the duration of the policy, the greater the premiums should come down.
The insured can choose the method of payment; quarterly, yearly, and so on.
If the premium increases, it is necessary to notify the customer with at least two months before the annual policy expires, so that if the policyholder disagrees there is time to terminate the contract before the next renewal date.
Companies use special offers and discounts to attract certain types of customers.
For example, for drivers with an impeccable driving record or those who have not claimed for more than one year with the same insurer.
Working in this way you can get a provider to make a significant discount on the base price offered; everything is negotiable.
Premiums are variable.
They are updated according to statistical data of accidents, injury compensation costs, health care, labour costs of repair and replacement part costs.
They are also affected by an applicant's geographical location, career and credit history.
As such, it can happen where two similarly experienced people have the same car with different premiums.
These are only some of the auto insurance FAQs of course.
Most providers have a checklist of questions, which it is always advisable to go through before selecting which policy to buy.