When you buy a car, an automobile insurance policy is usually part of it. While buying all the necessary documents you need to remember are registration documents or driver’s license. The automobile insurance plan also has the first and last names of the policy holders. And the policy has a unique identification number that is useful in case of accident or death. Most drivers need automobile insurance to ensure that the value of their damages are compensated by the policy provider. You will come across a few important types of automobile insurance when driving a vehicle.
Liability insurance provides protection to vehicle owners in the event of a collision. The policy principally protects the insured against claims for damages injuries or losses sustained by third party persons. The liability clause will always vary from manufacturer to manufacturer and model to model and type of cover you take. The policy also pays the hospital and funeral expenses for the insured and the people traveling with him, if any, in case of his death. Liability automobile insurance policy is commmonly mandated for property insurance which vehicle details like maker registration number, type, model, color etc.
Collision insurance also known as Comprehensive coverage is bought to ensure that the car is not damaged in the event of theft, collision, or other reasons. Comprehensive insurance coverage has become very popular and the reasons are few. Car owners annual basic car prices continue to rise markedly. Consumer’s purchasing power also increases every year. New models of vehicles are being frequently released by automobile manufacturers. And newly released models such as Cadilac, BMW and Lexus, make a car owner’s standard insurance plan invalid.
- Comprehensive insurance Insurance for non-accidental loss covers things like theft, damage, or natural calamities.
- Personal Injury Protection (PIP): In case of accidents, your medical bills and those of your passengers are taken care of by your insurance regardless who is at fault.
Choosing the right company
- Reputation and Financial Stability: Companies should have goggles of good reputation and reasonably rated financially.
- Coverage Options: The insurance business should provide limits for the types of coverage and claims needed within the financial capacity of the company.
- Customer Service: Get a company that offers good customer services and timely responses to clients.
Cost Considerations
Premiums and Deductibles
Insurance premiums refer to the amount you pay the insurer every month or year. Deductibles is the amount which will be paid by the insured person before getting the benefit under the insurance policy.
Factors affecting costs**:
- Age of the driver and experience
- Type and Kind of vehicle
- Driving records and past claim
- Residence area and Limit of coverage
Market Overview
The competition in the automobile insurance market is stiff and there are many companies ready to serve you. They include:
| Company | Market Share (%) |
|---|---|
| State Farm | 16.6 |
| Geico | 13.0 |
| Progressive | 12.2 |
| Allstate | 9.8 |
| Liberty Mutual | 7.7 |
Ways to Make Savings
- Shop Around: Checking multiple companies to catch the lowest rates will be more beneficial.
- Raise Your Deductible: Increasing your deductible does mean paying more out of pocket for claims, but betters your rate.
- Consider Discounts: Different companies provide multiple discounts and benefits based on good driving records, bundled policies and safety features of the vehicle.
- Drive Safely: The lesser the amount of accidents and claims, the premium gets lesser for the driver.
Conclusion
Dear readers, we trust that this article gives you a better understanding of automotive insurance companies. Remember, selecting the right company as well as coverage will greatly affect your financial circumstances.
Don’t forget to visit our other articles for useful information on insurance and personal finance. Thank you for reading!
Frequently Asked Questions pertaining to Automotive Insurance Companies
What types of coverage do automotive insurance companies offer?
Items have been categorized as: bodily injury, property damage, collision, comprehensive, personal injury protection, and uninsured or underinsured motorist.
How much car insurance do I need?
In case of a vehicle, the insurance should at least cover all minimum state requirements and provide additional coverage options.
Words and phrases that arch form any set of rules and regulations can be used freely. The auto insurance can easily be compared based on their policies built around claims of rates.
Consult with an insurance agent, or choose to contact various insurance companies directly, or use websites that compare insurance.
What steps towards decreasing my car insurance premium can I take?
Employ a mileage plan, raise your deductible, purchase multiple insurance policies at once, maintain a clean driving record, and reduce your total mileage driven.
When I make a claim on my car insurance what are the consequences?
Upon an investigation by your insurers, they will establish liability for the accident and compensate damages incurred which are covered by your policy.
How long does it take to claim the repairs after an accident with a car?
Depending on the amount of damage done on the vehicle, the parts needed, and how busy the shop is, the work done on the vehicle varies.
How much is a deductible?
A deductible is when you start paying for the expenses incurred during a health issue on your own. A higher deductible means paying lower premiums, however, it increases the amount of out of pocket payments.
When I get into an accident caused by an uninsured motorist what happens?
In the even the other party is uninsured, your uninsured motorist coverage can provide compensation for damages caused towards you.
Can I put my policy on a teenager driver?
Yes, but a teenager is high-risk and can significantly raise the costs of the policy.
What is comprehensive coverage?
It is coverage that pays for the damages done to your vehicle which were not from a collision recently, including theft.