Auto Insurance is an agreement done between you (insurer), and an Insurance company to help secure you against some financial, health, or property loss when there are cases such as accident, theft, or other vices. However, in exchange for this service, you will be asked to subscribe to any of their services as listed in their policy for a fee (premium).
WHAT DOES BEST AUTO INSURANCE COVER?
Best auto insurance policies are been sort for to cover some kinds of stuff, here are what best auto insurance covers;
- Property – When there is a case of theft or damage to your car.
- Liability –By law, you are responsible for damages done to properties or human injured.
- Medical – The cost of medical treatment or injuries sustained from causalities or the cost of a funeral if there is a loss of life(s).
Auto insurance is a bit not as simple as you thought, in the US, all drivers are meant to have auto insurance by law, although, insurance laws vary from states. This insurances are done individually and it covers for about 6 to 12 months, when it is about to expire, the insurance company sends you a reminder to make you get it renewed. I will be discussing the various types of auto insurance, factors to determine an insurance and benefits you get when you have an insurance policy.
HOW TO CHOOSE BEST AUTO INSURANCE
While looking for the best auto insurance, the first thing to do is check on multiple insurance companies for quotations, prices, and policies, then you will decide on the best that suits your need.
However, it is important to always check the overview of whatever insurance policy you want to pick, it should be able to suit your needs; it is not bad to have an insurance company that does an annual renewal from your insurance company.
Factors Used By Insurance Company to Determine How They Charge
Insurance Companies use various data or information to determine what price to charge a driver, the higher Your risk, the higher you are liable to pay more fee(premium). Here are a few factors they use:
- Driving age: You will pay more as a new driver since you have little experience with driving, though it will reduce as you become more experienced. Then later when you grow older, you tend to pay more because you are liable to make mistakes like a newly licensed driver. you get highly charged.
- Your vehicle: If you may be asked to pay more if you drive a high priced car than others that drive low-cost cars or vehicles.
- Your driving record: If have been caught violating in one way or the other, you will be charged more.
- Your location: At times locations to are used to determine how much u pay for insurance. If you live in high-risk cities, you will be charged more for insurance services.
- Your credit score: In the US, states authorize insurance companies to use credit score charge for their services. However, if you have a low credit score you pay more and if you a high credit score you pay a little bit less.
TYPES OF AUTO INSURANCE
I will be analyzing the different types of Auto Insurance that are available for you to choose from and their features
Liability is the least type of insurance you can get legally as a driver in the US, it covers you and the other driver. This type of auto insurance coverage when you are responsible for an auto crash/ accident or were challenged for causing one even if you didn’t do it. This type of insurance pays benefits in cases of medical bills from taking care of injured people when an accident occurs and damages on properties.
Collision – This is another type of auto insurance, which covers repairs of your vehicle due to auto crash/accident, damaged property if it was destroyed by you or makes arrangement for replacement ie if your car is totally damaged, you could get another car with same worth as yours or get paid to buy another
Comprehensive – With comprehensive insurance, you are fully covered if there are cases of auto crash/accident, even if your vehicle is stolen or dismantled by natural disasters. In comprehensive insurance, there is a vehicle replacement option if there is a need for that. Coverage, you will have coverage that includes replacement of the vehicle if it is stolen or damaged by natural disasters.
It is important to know that these types of auto insurances differ from each other, various insurance companies in the US also have different packages for each place. Some insurance companies in the US include the following
In this article, I have analyzed the basic features of each insurance, and however, it is your responsibility to choose any of the insurance that suits your plan and budget. Good luck.