Things To Know When Shopping Car Insurance?

What is Auto Insurance?

Auto insurance is a type of insurance that provides financial protection for drivers and their vehicles in the event of an accident, theft, or other types of damage. It is a legal requirement in most countries to have some form of auto insurance coverage in order to legally operate a vehicle on public roads.

Auto insurance typically provides coverage for a variety of risks, including liability for any damage or injury caused to other people or their property, as well as coverage for damage or loss to the insured vehicle. Auto insurance policies can vary in terms of the types and levels of coverage provided, as well as the cost of premiums, which is often determined by factors such as the driver’s age, driving record, and the type of vehicle being insured.

Shopping Your Car insurance? What Should Be The Question To As Ask The Agent Or Broker?

From my experience as an insurance broker. Nine out of ten, the number one question client always ask when shopping for car insurance is ‘How much is my monthly payment?’ Barely they will ask ‘What is my coverage? Isn’t it suppose to be the first question to be ask? For this being said; even if we pay the least premium if we are not covered properly. Then there is no point of buying insurance.

Buying Proper Coverage? Why Is So Important?

Financial protection: Auto insurance provides financial protection in the event of an accident or other covered event, such as theft or damage to the vehicle. Without insurance, the driver would be responsible for paying for any damages or injuries out of pocket, which could be a significant financial burden.

Legal requirement: In most countries, it is a legal requirement to have some form of auto insurance coverage in order to legally operate a vehicle on public roads. Failure to have insurance can result in fines, penalties, and even legal action.

Peace of mind: Knowing that you have proper insurance coverage can provide peace of mind while driving, as you will be protected in the event of an accident or other covered event.

Lender requirement: If you have a car loan, your lender may require you to have comprehensive and collision coverage in order to protect their investment in the vehicle.

Protects others: Liability coverage, which is a component of most auto insurance policies, provides protection in the event that you are responsible for causing damage or injury to others while driving. This can help to protect others and provide financial compensation for any losses they may have incurred.

How Much Is My Premium? What Are The Factors That Affects The Cost Of Auto Insurance?

Driving record: A driver’s past driving history, including any traffic violations or accidents, can have a significant impact on their insurance premiums.

Age and gender: Younger drivers and male drivers are statistically more likely to be involved in accidents, and therefore may be charged higher premiums.

Type of vehicle: The make, model, and age of the vehicle being insured can also affect the cost of insurance, as some vehicles may be more expensive to repair or replace in the event of an accident.

Location: The area where the vehicle is primarily driven can also have an impact on insurance premiums, as some areas may be more prone to accidents or theft.

Coverage limits: The type and level of coverage selected by the driver can also affect the cost of insurance premiums.

Credit history: In some states or countries, a driver’s credit history may also be used as a factor in determining their auto insurance premiums.

Deductible amount: The deductible amount chosen by the driver can also affect the cost of insurance premiums, as a higher deductible typically results in lower premiums but higher out-of-pocket costs in the event of a claim.

Proper auto insurance coverage is essential for protecting yourself, your vehicle, and others on the road, and for complying with legal requirements.

Insurance is one of the best thing that you can ever BUY… it gives you PEACE of MIND…