Traffic laws are designed to keep everyone on the road as safe as possible. That motivation is also behind auto insurance laws, which are required in Canada and the vast majority of US states.
What is car insurance?
Car insurance is something most drivers have, but very few, if any, expect to use it. According insurance.comAuto insurance is an agreement between the policyholder and an insurance company that protects the individual against financial loss if the vehicle is stolen or involved in an accident. The Insurance Information Institute says that car insurance provides medical, liability, and property coverage. Property coverage covers damage to or replacement of the vehicle. Liability coverage is for the policyholder’s legal liability to third parties for bodily injury or property damage. Medical coverage pays for the cost of injury treatment, rehabilitation, and sometimes even funeral expenses or lost wages.
Mandatory coverage vs. mandatory
Depending on where the policyholder lives, there are certain coverages that are mandatory or mandatory coverages that are the minimum amounts required by law. Optional coverages can also be purchased to meet individual needs. Mandatory coverage may vary based on location, age of driver, type of vehicle, and type of financing for that vehicle. It’s best to discuss coverages with an auto insurance agent to find out what types of coverage will be needed and to get a quote. The six basic types of coverage include:
bodily injury liability
personal injury protection
property damage liability
Underinsured or uninsured motorist coverage
The insurance is typically sold with deductibles, according to the III. Policyholders can opt for higher deductibles so they can lower their premium costs. Additional factors that will affect the cost of coverage include the driver’s age, driving record, and the location where the vehicle is staying or used. Credit rating and gender can also affect premiums. Defensive driving courses and vehicle protection with anti-theft devices can help lower premiums.
Auto insurance costs vary by a significant amount, so it’s a good idea to shop around and compare quotes. Combining auto insurance with other policies, like home insurance or umbrella policies, can help lower your rates.
To obtain an insurance policy, the agent will need the year, make and model of the insured vehicle. To get the most accurate price quote, the VIN number will be needed.
To purchase car insurance, one must be the registered owner of the car. Some states allow dependent and independent drivers to own a car in their name at age 16 or 17. Some parents choose to bundle insurance coverage for their teens because the premiums may be cheaper. Teenagers tend to be more risky in the eyes of insurance companies due to their lack of experience and perceived recklessness. Those factors are reflected in premium costs.
Insurance is something every driver should have. Motorists can explore their options to find policies that fit their needs and budgets.