Why do you have to pay for expensive auto insurance? Do you really need it?

Auto insurance can be defined as the financial protection offered by institutions to cover vehicles against physical damage and or bodily injury of individuals in the event of car accidents. The protection also extends to cover any damage that the vehicle may have incurred. In this country, basic auto insurance is compulsory for every vehicle. This has been passed as a law and it is a requirement for all. In each province in the country, administrators decide on the benefits of an insurance cover that should be considered as the minimum requirement. Statistics show that over 2 billion dollars are paid by insurers to the country’s health care system. Although insurance cover is an expensive affair. Insurance policy exist to save the individual's finances in the event of an accident.

The basic determinant of premiums to pay is directly dependent on the make and model of the vehicle being insured.  Pricey vehicles will attract hefty premiums. The second thing is the theft prevalence of that model of vehicle. The higher the cases of theft of the car the higher the premiums to pay. Car valuation is carried out by the insurer to estimate the current value of the car. The next point of consideration is driving record, the argument here is how risky the driver is. A bad record will translate to high premiums. Some private firms go as far as to consider the age of the policy taker and the place of residence in the efforts of calculating the premiums. The minimum is 20 dollars down payment car insurance premiums.
There are quite a fewdifferent provisions of auto policies in the insurance market:
Liability coverage- this type of insurance cover offers protection against injuries and car damages to the affected party. It covers for the medical fees and for the damages caused on the vehicle of the other party. The policy kicks in went the insured is at fault and cause of the accident.
Individuals should note that the policy does not cater for the damages and injuries of the insured. In as much as this is not fair liability coverage protects the other party from damages caused and it also protects the driver financially. You can be covered for as low as a 20 dollar down payment car insurance policy.
Medical payment coverage – this type of policy is regarded as additional protection. The policy covers the insured and the passengers in the vehicle from injuries incurred in the event of an accident. The policy kicks in regardless of who is at fault and is also optional.
Uninsured motor coverage- the policy protects the insured against injuries and damage to the vehicle in the event of a road accident caused by an individual who breaks the law by not carrying their auto liability insurance with them. It caters for the cost of medical attention received. This policy also kicks in when the damages caused exceed the total insurance package (underinsured) of the party that caused the accident.
Collusion/Coverage for damage to your car- this type of policy covers for direct and accidental loss or damage to your vehicle. The policy is also optional but necessary.
Comprehensive coverage- this type of policy covers the vehicle from damages that are beyond the owners reach. The damages may be caused by fire, weather or theft. It is considered necessary, but it is optional.
In this era of digital information technology, insurance firms and brokerages have digitized their services to online platforms. This has made it easy for individuals to value their vehicle and calculate the premiums payable. It also informs individuals which firm offers the best policies as per their requirements and what additional coverage is available. Individuals are now able to compare and contrast price quotes from various firms. 20 dollars down payment car insurance is considered the minimum.  Insurance firms in the country compete by price, coverage, services and benefits offered. Insurance coverages are dynamic based on insurance reforms. Individuals should understand what is covered and what the new contract entails. This is whether an individual is acquiring a new insurance or when renewing a cover.
Rodney DYoung is an insurance firm that has migrated all their services online; they offer services like an insurance calculator and a form to report a claim. In the effort of attracting customers, the firm has a strategy where individuals can buy a car insurance policy nowand they can pay later. All of this is an effort to capture the market base.
Therefore, before individuals buy an auto insurance policy, they should first know what they are getting from the policy and why. They should understand what the policy covers and what it excludes. This will direct individuals as to what they need to stay legal and what they have to do to be financially protected. The fact is that insuring your vehicle gives you peace of mind even though insurance can be an expensive venture. Before someone commits to buying a policy, they should first research and understand it before buying a vehicle. A motor dealership can be a good source of such information. Therefore, it is wise for individuals to keep in mind the cost of auto insurance before acquiring a new vehicle. For as low as $20 dollars down payment on car insurance one can be covered.

No comments