Auto Insurance Basics
Auto insurance is required in most states and proof of insurance may be needed to license a vehicle or if the driver is pulled over.
Having adequate coverage helps protect the driver’s home and property in the event of an accident if they are at fault.
Minimal limits vary state by state and may include coverage for physical damage to the other vehicle as well as some medical coverage. Auto insurance policies often include coverage for non-insured and under insured drivers as well.
Auto insurance can be purchased through a local agent, online or via the phone. The agents know the applicable laws for the state of residence including the minimal coverage dollar amounts. They may recommend different packages based on driving history as well as what other collateral the driver owns to help protect those assets in the event of an accident.
Depending upon whether the customer owns their vehicle, its shape and condition, they may wish to purchase either full coverage or limited auto insurance. Full coverage includes replacing any damaged parts on their own vehicle as well as repairs to the other vehicle.
While full coverage will increase the auto insurance premium it is considerably less expensive than replacing the entire vehicle and should be considered if the owner is able to afford it.
The cost of auto insurance is based on many variables. These include previous driving history, tickets as well as accidents regardless of who is at fault. The use of the vehicle, whether commercial or private use as well as the miles that are generally driven are another determining factor.
The location where the vehicle is stored as well as the area in which the driver lives may also come in to play when determining auto insurance rates.
The age and sex of the driver as well as the model and year and make of the vehicle are considered as well. The final rate is a compilation of these and also is based upon the desired coverage.
Choosing a trusted agent to purchase auto insurance from and honestly filling in all details and history will result in the coverage at the best price to protect the driver and their family.