What Is Auto Insurance ?

By Author: Adel Khamis Hassan
Total Articles: 2
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Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the auto insurance company. You agree to pay the premium and the auto insurance company agrees to pay your losses as defined in your auto insurance policy.

Auto insurance provides property, liability and medical coverage:

* Auto insurance Property coverage pays for damage to or theft of your car.

* Auto insurance Liability coverage pays for your legal responsibility to others for bodily injury or property damage.

* Auto insuranceMedical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

How is your auto insurance policy price determined?

The average auto insurance policy price is derived from a variety of factors.

Many of these variables are common knowledge and make sense for the most part.

it is always a good idea to refresh yourself with what auto insurance companies are looking for when determining how much your coverage will cost.

*Driving Record

*Coverage Amount

...
... *Age

*Vehicle Model and Driving Mileage

*Your Residence

What auto insurance coverage?

What types of auto insurance coverage to choose from?

*Liability: Auto insurance coverage is the primary and usually mandatory part of the auto insurance equation.

*colision: which is not to be confused with liability. In simplified terms, buying collision insurance can be thought of paying someone to save you from yourself. The safer you drive, the less necessary it becomes.

*Personal Injury Protection (PIP) or Medical Payments (MedPay) provides reimbursement for medical bills of you and your passengers regardless of who's at fault, and for resulting lost wages.

*Rental reimbursement simply pays for the cost of renting a car. Even if it costs $30 a year, why bother? $30 basically buys a one-day car rental, so it's hardly worth it unless you get stranded a lot. If you own a second car, this is completely unnecessary. The same reasoning applies to towing insurance and the like.

Can you raise or lower your auto insurance rate?

There are 10 factors that can raise or lower auto insurance rates

*Your Age
Generally younger drivers are considered to be high risk and so the Auto insurance rates are higher.

*The make of your car
Most auto insurance companies tabulate auto insurance rates based on the make of the vehicle.

*Gender is a factor too
Females get lower rates of auto insurance while males pay higher auto insurance premiums.

*Financial stability
Auto owners with great credit scores and credit reports generally pay lower premiums than those with bad credit scores and reports.

*Driving records have a say in premiums payable
If a driver has a clean driving record for three consecutive years then auto insurance providers will happily extend policies with lower premiums.

*Where you stay
Those who live in the city pay more than individuals who live in the country or suburbs. Areas with lower crime rates attract lower auto insurance premium rates.

*How many Auto insurance policies you hold
If you approach for auto insurance the same insurance company that has you covered for life, health, home and so on then you would automatically be eligible for great discounts on premiums payable for an auto insurance policy.

*The condition of the car will be considered before offering a Auto insurance policy

*The distance traveled per year
If you restrict the number of miles traveled then you will be able to get auto insurance at lower rates.

*Whether or not you are eco-friendly
If you care for the environment and drive a non polluting vehicle then the auto insurance premiums will be lower.

Can your age be a problem in auto insurance?

In auto insurance know as the age factor.
Your age can be a big problem in auto insurance. It could also be a great advantage. Which ever group you fall into, there's a way for you to make the most remarkable savings in your auto insurance premium.

*If you're above fifty-five. You've entered the hallowed zone in auto insurance. If you don't get pampered by an auto insurance provider now, you never will. This is because you belong to an age group that has a high reputation of road safety.

*If you're under-25, you're considered a very high risk as far as auto insurance is concerned.

Why is Women's auto Insurance So Much Cheaper Than Men's?

Statistically, women drivers are the safest on roads, and therefore are rewarded with cheaper premiums for auto insurance. Women on Wheels combines these discounts with supreme cover, that automatically includes a free replacement car (on comprehensive), free abroad travel, and free legal cover!

Adel Khamis Helping You To Know Every Thing About insurance for more information visit http://www.allinsurance-types.info

To know every thing about your car visit http://www.insure-yourcar.org