Top 5 Auto Insurance Companies

When choosing auto insurance it is a good idea to do your homework and check out what a company's policy does and does not cover before purchasing it to make sure the policy you pick is right for you. Knowing what type of auto insurance coverage you need is not always a simple matter, what makes it difficult for car owners is the fact they just don't know one form of coverage from another.

It is therefore important to make sure you take the appropriate time to learn what sort of coverage is on offer before making a decision. Coverage services and price may vary from company to company and since there are distinct price differences, it is often tempting to go with the least expensive. The only problem with this approach is that less expensive may also include less quality coverage.

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What Are The 3 Primary Types of Motor Insurance?

Liability - This coverage protects you for the bare minimum, the lowest form you can have to be a legally insured driver. Liability is to protect you, the driver, in the event that you are responsible for an accident or if you are held responsible even if you did not technically cause one. This coverage includes damages, medical expenses, lost wages, as well as other consequences suffered by those who sustained injuries as a result of the accident.

Collision - This level of auto insurance involves coverage for repairs to your vehicle that need to be made as a result of a traffic accident, no matter who is at fault. It also covers property damage and any damage to the vehicle that is a result of a collision with trees, buildings, etc. Collision insurance also offers a replacement provision. This means that if your car is declared a write off by the auto insurance company, you may be able to obtain a replacement vehicle of the same market value or down payment for another one.

Comprehensive - With comprehensive insurance coverage, you will have coverage that includes replacement of the vehicle if it is stolen or damaged by natural disasters. It makes sense to remember that If the annual auto insurance premiums for comprehensive and collision are 10 percent or more of the book value of the car you should consider dropping the coverage.

Cheapest Auto Insurance Quotes In Your Area

Factors Which Can Determine your Premium.

The amount you'll pay for car insurance is determined by various different factors, from the type of coverage you have, your driving record, and even where you park your car. While not all companies use the same parameters, here is a basic guide:

• Your driving record – If you have a clean driving record it's likely you'll pay less than if you have a poor driving record. You may also pay more if you're a new driver without an insurance track record.

• How much you use your car – The more miles you drive, the more chance you are of having an accident so your premium will be higher. For example, if you drive your car to work or use it to commute long distances your policy will be higher than if you are only using for pleasure use.  

• Location – Urban drivers pay a higher auto insurance price than those in small towns or rural areas, this is mainly due to theft, vandalism, and accidents. If you have the facility to park your car in a garage rather than on the street, this can also make a difference in the price of your policy.

• Your age – If you are a teenager or young person under 25 insurers in general charge more than the insurance for a mature, experienced driver who is likely to have fewer accidents.

• Your gender – Statistically, women tend to get into fewer accidents than men and as a consequence usually pay less for their insurance.

• The car you drive – The cost of your car is a major factor in the cost to insure it. The cost of repairs on an expensive vehicle will be higher and also its engine size and the overall safety record of the car may determine the cost. Automobiles with high-quality safety equipment might qualify for premium discounts and also cars fitted with anti-theft devices. Insurers not only look at how safe a particular vehicle is to drive and how well it protects occupants but also how much potential damage it can inflict on another car. If a specific vehicle model has a higher chance of inflicting damage when in an accident, an insurer may charge more for liability insurance.

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In conclusion, whichever cover you decide on, make sure you have done your research so that you can enjoy happy motoring with complete peace of mind.