Wednesday, 28 March 2018

8 important things you have to know about car insurance

Image result for car accidents

What to Know Before Buying Car Insurance

Buying car insurance raises a lot of questions. What do you need? How much? What does it all the jargon mean?
Buying insurance coverage isn’t hard but understanding the lingo, knowing your rights, and getting the right coverage for what you need can be difficult. Being informed could save you money.

Whether you’re buying auto insurance for the first time or shopping around for a new rate, you’ll want to know these myth-busting facts.

#1.Not All States Require Auto Insurance

The Virginia Uninsured Motor Vehicle fee gives vehicles owners the option of not insuring their car if they pay a $500 fee in addition to normal registration fees.

New Hampshire law does not require that owners insure their vehicle either. If you choose to forego car insurance, the state does require that you pay any injury or property damage related to any crash you may have. If you are in a crash, your license will be suspended until you can show that you have paid all costs related to the collision.

#2.The Color of Your Car Does Not Determine the Cost of Your Insurance Coverage

The vehicle you’re driving, your age, marital status, credit rating, gender, and home address determine the cost of your coverage.
Insurance companies also want to determine how much of a risk you are. They’ll check out your driving record, including accidents and tickets. If you live in an area where vehicle thefts and break-ins are common, your rates will most likely be higher than someone who lives in a crime-free neighborhood in a house with a garage.

#3.How You Use Your Car Determines Your Auto Insurance Rate

Will you be commuting? Driving just on Sunday? Making some side money driving for Uber? When you’re shopping for car insurance, make sure the company knows how you’ll use the car.
If you use your vehicle for business, your personal policy may not cover you if something happens to your vehicle while on the job. Before you agree to purchase a policy, be sure to clarify these points with your agent. An additional policy or supplemental coverage may be in your best interest.

#4.Insurance Doesn’t Cover Everything

There are numerous types of coverage that can be included as part of an auto insurance policy. Each state has different requirements about the minimum amount a policy must cover.
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The Insurance Information Institute lists seven basic types of car insurance coverage: Bodily Injury Liability, Medical Payments or Personal Injury Protection, Property Damage Liability, Collision, Comprehensive, Uninsured, and Underinsured Motorist Coverage. Each policy will have a limit to the amount of money your insurance company will pay out for different types of coverage.
Each type of coverage has a cost associated with it. Working with an insurance agent can help you determine which types of coverage best fit your needs and budget.
What Is a Deductible?

About the Author

Mussa Msemakweli is a technology entrepreneur, Book writer and digital marketing expert. He is currently C E O at the Africa shared . His work has been featured in a number of publications, including the Maisha halisi Magazine and on Culture trip. If you have a good time follow me on facebook and instagram or leave a comment, Thanks.
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Mussa Msemakweli

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