A standard car insurance policy generally offers six kinds of coverage including that for personal injury, bodily injury liability, comprehensive, collision, property damage liability and underinsured and uninsured protection. Policyholders are welcome to buy other additional coverage to add to the basic policy to enable more comprehensive protection.
How Premiums Are Decided
The cost of premiums will vary from one driver and vehicle to another depending on several factors. Each insurance policy and the above described coverage aspects will come with deductibles that one must pay before coverage kicks in. For instance, a person may have protection for cases of vandalism. The policyholder would first have to pay the deductible before the insurance provider will pay out. Once the premium is paid, the insurance company then will provide compensation for necessary repairs for the vehicle. Deductibles may vary from $250 to $2,500 or more and, normally, the higher the deductibles, the lower the premiums will be.
One’s Age and Gender: Insurance providers will normally charge higher premiums for the coverage of teenagers, new drivers and young adults up to 30 years of age. This is due to the fact that these groups are at higher risk of accidents. It is also statistically determined that women tend to be more cautious behind the wheel, and this can lead to less costly premiums.
The Make and Model: The kind of car covered can also make a difference due to higher output engines (sport cars), their repair and replacement costs, etc.
Marital Status: It has been shown that single drivers are responsible for more accidents than those who are married, which means higher premiums normally.
Other Factors: Other issues that affect cost include one’s credit score, a car’s safety rating, one’s driving record, as well as the car’s age. Policyholders may also be offered several discounts, such as when one completes a safe driving course, if one is of a certain occupation, is a good student or when driving fewer miles per year than on average, and so on.
Accidents can happen at any time and any place. Purchasing good auto insurance coverage will protect you from the financial repercussions of the many perils that one faces daily as a driver.