When you buy a car you can be accompanied by different feelings. Along with a sense of satisfaction and, probably, a sense of accomplishment, anxiety may embrace you. On the road you and your car expect many risks, that’s why you have to think about personal auto insurance.
With the risk of being involved in a traffic accident, car thieves, natural disasters and other threats could threaten your property.
You should insure your car to protect yourself from financial losses. Buying personal auto insurance may not be very cheap, depending on many factors. At the same time, it will cost you much cheaper when the insured event occurs.
You will have to pay all expenses from your own pocket, when you are not secured with car insurance. The cost of restoring a car, medical expenses or compensation to other road users can cost you many thousands of dollars. At the same time, the average annual cost of personal automobile insurance in the United States is less than $ 900.
You would need to understand some of the intricacies of car insurance in more detail, in order to understand what you need to pay attention first of all when buying a car insurance policy.
We propose to consider in this article the most common questions about personal car insurance that will help you decide on the choice of insurance policy.
What is included in the auto insurance policy?
Different insurance companies may offer different conditions for personal car insurance, but often you will receive a set of protection against the most common situations that can cost you dearly.
Compensation for damage to property of third parties
When you get into a road accident it is usually associated with damage two or more cars. You can damage your car as well as cars of other road users. Your insurer will have to compensate for material damage.
Responsibility for personal injury per person
If other people were physically injured or temporarily incapacitated during a road accident due to your fault, your insurer will pay for medical expenses, loss of wages and other related expenses.
Your medical expenses or loss of salary due to an accident, and other passengers expenses will also be compensated by the insurance company.
In any case, you should ask your insurance agent in detail about all the features of your personal car insurance when it is issued.
What auto insurance coverage do I need?
A minimum amount of car insurance coverage may be established, depending on the state of the United States. Separately, there will be a minimum set of compensation for injuries to other road users, material damage brought to them and your medical expenses.
If at the same time you choose the minimum coverage, then all that will be above the minimum amount of compensation, you have to pay out of your pocket. This can cost tens of thousands of dollars for you.
In fact, to give a universal answer for all to this most common question about personal automobile insurance is practically impossible. The amount of coverage you choose is highly dependent on your personal circumstances.
If you are a highly risky driver, then you hardly need to adhere to the minimum coverage so as not to get into big expenses. Most likely for you to be a more relevant option comprehensive insurance, covering more damage in different situations.
Why are your insurance premiums higher than average?
The insurance premium rate for you depends on many factors. First of all, insurers are based on your level of risk as a driver in determining the insurance rate. There are three levels of drivers by risk. Depending on which category you are assigned to, there will be a level of cost of car insurance for you.
If you already have several traffic accidents due to your fault, penalties for breaking the rules or you were stopped drunk, then you will definitely be classified as high risk driver.
In addition to that, drivers with high risk are young people under 25 years old. Your credit will also affect the cost of the policy, as well as some other factors.
Can I do without car insurance?
In some states you can legitimately dispense with car insurance. This is a great rarity and in most states you will encounter problems driving a car without insurance. Fines or even arrests in this case can be applied to you.
Even if in your state is allowed to drive without personal auto insurance, you can still get into a traffic accident in which you will have to pay full damage and other expenses of affected people. It can cost you tens or even hundreds of thousands of dollars. Are you ready for such expenses?
What is forgiveness of accidents?
There is no guarantee that one will not be involved in a road accident, no matter how careful he is. There is always a place for happening, which is beyond our control. Taking into account this factor, insurance companies offer various programs for those who got into accidents through no fault of their own.
Forgiveness of accidents attracts drivers, as they do not have to pay high insurance rates, even if they have been in a road accident. This does not work in all cases. Each company will consider your case separately before deciding to forgive an accident.
Personal auto insurance will allow you to sleep peacefully
Buying a car, you acquire property that is subject to various risks. Even if you drive very carefully, there is still no guarantee that someone else will not bump into you. Also, the number of hijackings in the country does not allow you to safely leave your car unattended.
All these experiences will stop bothering you if you purchase a personal auto insurance policy for your car. It will save you big expenses in case of any accidents.
Now you know the answers to the most common questions about personal auto insurance to see if you need it. You may still have a lot of questions about insurance when you start to choose an insurer and the type of policy.
You can find a lot of useful information on this topic in our financial blog, as well as ask questions to our consultants, just by writing to us. We specialize in personal finance and are ready to help you improve your financial affairs.