Auto Insurance: Basic Facts

If you are planning to get your very own car next week, month or year you need to be fully equipped regarding some basic information when it comes to auto insurance.

Auto insurance is sometimes known as car insurance, motor insurance or vehicle insurance. So, if you come across with one out of these three terms it simply means auto insurance.

Why there is a need to get auto insurance? It is to give you protection against contingent loss incur during a traffic accident. So, when your car got wrecked out because you got caught in an accident like a branch of tree fell unto your window and the hood got damaged, then the insurance company will spend for the cost of repairing your car. However, not all the times that the insurance company will repair a car out of an accident, there is an exception to that. Most of times, if you get caught in an accident and you are driving under the influence of alcohol or drugs, the insurance company will likely deny your claim.

Auto insurance covers three different aspects:

1. liability – the cost of lost wages, treating injures as well as funeral expenses are covered
2. medical – your responsibility of paying the victim or other people involved in the accident for body injuries or the damage on one’s property is covered
3. property – the damage caused on your car or there is an incident of theft

The amount of insurance premium paid does vary based on gender, age and also the value of the car even. Say for example, males do drive longer miles compared to women, therefore they need to pay higher premium compared to their female counterparts. As to you teenagers who don’t have any record of driving will eventually get higher premium since there is higher risk of getting an accident. It is safely to note that when you have higher risk of engaging an accident due to your experience or inexperience, the auto insurance premium you need to pay is higher. Those who own motorcycles and sports car do pay higher auto insurance premiums compared to those people who own electric car and compact car.

An auto insurance policy usually has six months up to one year contract. So, if you are planning to get your own car be sure you are going to get auto insurance and be willing to pay higher premium if you own an expensive car or a motorcycle and if you are a male, too.