Car Insurance: How to Make It Work for You

If you own a car or are about to become the
owner of a car, getting a good car insurance
must surely be one of your priorities. Before
choosing a car

insurance policy , you must
understand its various aspects and
component. A step by step guide to
understand car insurance follows:
Breaking your insurance down: What does the
insurance cover?
Liability in case of bodily injury: If your
car leads to somebody’s death or injures
someone, car insurance will cover the
death and injury claims made against
you, and cover the legal costs.
Medical bill : Car insurance company will
pay to treat any injury incurred to you or
the third party due to the accident.
Liability in case of property damage: If
your car in an accident damages
someone else’s property. Car insurance
will cover the claims filed against you.
Comprehensive (physical damage) : This
covers the damage your car may suffer
due to vandalism, wind, flood, fore or
theft. It also covers any other issues not
related to accidents.
What are the factors that determine the kind
of car insurance rates you will get?
Age: If you are young, and do not have much
of experience when it comes to driving cars,
your rates will be higher, also men tend to
get higher rates than women.
The Demographics of your location: If you
live in an area which has a high crime rate,
you will be compelled to pay more.
Traffic violations : If you violate traffic rules
and are slapped with charges like speeding
or other kind of violations, your insurance bill
will surely increase. To avoid this, always
obey traffic rules while driving.
Claims : Premium on your policy also
depends on your claim history. If you are
filling to get insurance claim almost every
year then you may have to pay additional
money for your car insurance.
Systems to prevent theft: If you have theft
deterrent systems installed in your car, you
are likely to get some discount.
Training: Some car insurance companies
provide a lower rate if you undergo a period
of driver’s training. This is focused on
accident prevention which will ultimately
benefit you as well as the insurance
company.
Payment plans: There are companies that
offer rebate based on the kind of payment
plan you choose to take. For example, if you
pay the bill at an annual basis, you may get
a discount. There are few companies
offering discount if you renew your insurance
policy online .
It is essential that you go through some
options and quotes that are available to you
before selecting your car insurance. Make a
decision only after reading the entire body of
information. Many a times some companies
can offer lower premium by not covering
some parts of your vehicle so we have to be
careful regarding the inclusions & exclusions
and don’t just settle for the lower insurance
premium.

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