You must have heard about car insurance and how it's great to have one, that's is probably why you want to know more about it. Car insurance is a kind of coverage that protects you from any financial burden resulting from an accident. Like every other insurance, car insurance comes in different types and is affected by different factors. This guide contains a summary of what you should know about car insurance. Read on to know out more about car insurance!
Basic car insurance has three types of coverage, each of which is explained in detail below:
Liability coverage protects you when you are liable for the damage. It is of two types, bodily injury liability, and property liability. Bodily liability coverage protects you, the designated driver, or policyholder, from liable damage made to the third party. It covers their medical bills and settles financials in case of lost wages due to the accident. On the other hand, property liability covers any damage to the other person's car or property.
PIP is medical coverage that provides financial protection from medical expenses and other expenses resulting from the accident. It also provides funding in cases where the injury leads to lost wages or disability.
This coverage protects the policyholder from damages caused by an uninsured or underinsured road user. In most states in the U.S., it is mandatory to have this kind of protection.
Collision coverage protects from any kind of collision, either with another vehicle or a stationary object like a fence, mailbox, a pole, damage from potholes, etc.
You need comprehensive coverage for any other form of damage different from collision damage. This insurance provides coverage from damage due to theft, vandalism, hail, riots, fire, falling objects, etc.
You need gap insurance in cases where your car is destroyed or stolen. It covers the difference between the market value of your car and the cost of a new one.
First, you need to buy a policy from an insurer to become a policyholder. After that, the next thing is to pay your monthly insurance premiums regularly to keep your policy activated. These monthly premiums are then used to cover any damage or repair caused by accident.
According to Bankrate, there is no conclusive rate for car insurance, but the average auto insurance rate is stated as $1,674 per year. However, some factors affect this rate, such as:
If you reside in a high-risk location, there is a certainty that you will pay more for insurance. For instance, those living in urban areas will pay more than those on the outskirts of town. This is due to the kind of risk that accompanies living in the city
According to statistics, the male gender is more prone to indulging in riskier behaviors like driving under the influence and getting involving in accidents. For this reason, females are more favored than males regarding insurance costs. In other words, male drivers pay more than females.
Studies have also shown that younger drivers are more likely to be involved in a car accident than mature drivers. In fact, teenaged drivers have nearly 400% more crash rates compared to older and more experienced drivers. Driving experience may be a contributing factor to this, and insurance companies charge more for young drivers.
Deductibles are the out-of-pocket expenses you pay when you make a claim. Usually, the higher your deductible, the lower your insurance cost and vice versa. This is because of the reduced risk your insurer will cover.
Your driving habits determine your driving record, which in turn determines your insurance cost. Drivers with more accident records tend to have a higher insurance rate than those who do not. Other factors that will determine your insurance cost includes:
Car insurance has all the coverage you need to protect yourself and your car financially from unplanned events. Weeks Insurance, Thousand Oaks, California, offers the best possible insurance policies at the best possible price. For more professional inquiries, our team of insurance experts is available to help you. Reach out to our team of auto insurance experts today to get a quote!