A majority of car owners may consider auto insurance a frivolous expense but the truth is just the opposite. Even though it may be expensive and complicated, insuring your car may be the best thing that you can do for good coverage against damage and accidents. Besides the costing and calculation aspects, there are certain facts that you should be aware
Fact #1: The car insurance cost depends on a number of factors
There are several factors that determine your car insurance cost. The car’s model, age, engine size and body type are some of the factors considered while calculating the policy’s cost. Others include the overall safety record of the vehicle, its repair costs and the driving record of the owner. On the other hand, its colour has no impact on
Fact #2: Older drivers need not pay more
There is a widely prevalent misconception that older drivers may have to pay higher premiums. But the truth is that they may actually be eligible for some special discounts. These discounts may be given after the driver completes an accident prevention course successfully. However, the norms related these programs may vary from state to state and provider to provider.
Fact #3: You should opt for an optimal coverage rather than the minimum recommended amount
According to the state law, you need to buy a minimum amount of car insurance. However, it is not advisable to stick to this minimum because you may ultimately have to pay out of pocket for the losses after an accident in the absence of adequate coverage. Ideally, you should opt for an optimal coverage even if it means that you need to pay a premium that is a bit higher.
Fact #4: Check an insurance policy to ensure that it covers rental cars too
If you rent out your car, you must have clarity about Rental Car Insurance because it still needs to have proper coverage. Not all policies cover rental vehicles; this makes it necessary to explicitly check it out with the provider and understand the clauses. Further, you should have a clause added to the current policy if it is not already there. This is usually an inexpensive provision but can serve immense benefit.
Fact #5: Insurance follows the vehicle and not the driver
Typically, insurance follows the vehicle rather than the driver. Even if a friend is behind the wheel when an accident occurs, the damage is to be paid by the car owner’s insurance provider. The policies may differ from state to state and insurer to insurer, which is the reason that you should understand them well enough before allowing anyone else to drive your car.
With all the common auto insurance facts covered, you will be able to understand the concept better. This will help you in choosing the right policy that gives you good coverage without digging a hole in your pocket.