he aspiration to own a car is similar to the desire of building one’s dream home. You can save a lot of time to own the car for making arrangements of a loan. Well, this is the easy part.
You may not be prepared for what comes later. You are amazed by the amount of gasoline of your car guzzles, servicing the car costs much and the preposterous automobile insurance rates shock you. The best thing to do would be to budget all of these in your monthly / annual expenses at the outset, maybe even before actually buying the car. You would then be well prepared to meet the expenditure.
Though automobile insurance rates may seem high and paying the premium may seem like an unnecessary expense, the automobile owner cannot avoid taking an >automobile insurance policy.
The place where your car is registered will play a key role in determining your insurance premium. The government may have fixed the charges or the insurance company will fix the automobile insurance rates according to government regulation.
The model of your car, it’s year of manufacture and cost will all be considered when fixing automobile insurance rates. For instance, an expensive car will cost more to repair and hence the premium rates will be higher.
The automobile insurance company will ask for some personal details of the owner / driver such as his driving record, age, gender, marital status and so on. An impeccable driving record may mean lower automobile insurance rates. The very young and the aged may be charged higher rates as the risk of accident is higher.
Automobile insurance companies differentiate between cars used for personal purposes and business purposes. Automobiles used in business are charged higher automobile insurance rates. Similarly, cars which are used for interstate travel are charged higher premium.
An automobile insurance policy may cover different kinds of risks. The kind of coverage taken will determine automobile insurance rates. Liability coverage, collision coverage and comprehensive coverage are some of the types of coverages offered by automobile insurance companies.
A car owner decides on a suitable automobile insurance policy after comparing the automobile insurance rates of different insurance companies. He may get this information online or from an insurance agent. Of course, one should not take a policy just because the premium is cheap. One needs to do a background check of the company. It may turn out that the company is not prompt in paying the insurance amount.
The worth of automobile insurance is known only when there is an unforeseen event which would have cost the automobile owner a huge amount of money if not for the compensation paid by the insurance company.